Entrepreneurial orientation and new product development in biotechnology firms: Highlighting the moderating role of top management support and firm growth potential

Abstract

Previous research has discussed the significance of entrepreneurial orientation (EO) and new product development (NPD) in high-tech firms. The current study aims to highlight the role played by the entrepreneurial orientation of biotechnologists in new product development in the context of Malaysia. The study was based on the quantitative research design to study the interrelationships between EO, NPD, TMS, and FGP. Data was collected from senior and functional managers in biotech firms in Malaysia through non-probability sampling techniques. A sample of 196 respondents from the Malaysian biotech sector was recruited to evaluate the causal associations by applying SEM and CFA to identify the model validity. The results from the empirical analysis suggested that EO significantly impacts NDP in biotechnology firms in Malaysia. The results indicated that the presence of EO resulted in augmented NPD within the biotechnology sector in Malaysia. Furthermore, the findings also showed that top management support and the growth potential of the firm resulted in increased NPD, which usually leads to increased firm performance and development. Therefore, this study concluded that new product development is enhanced through entrepreneurial orientation in the firm, where top management support and firm growth can strengthen the relationship between EO and NDP. The findings contribute to the EO and NPD literature as it finds evidence that top management support and firm growth potential can be useful to direct the firm's entrepreneurial orientation into successful new product development. Lastly, practical implications for managers and future research recommendations are provided