Entrepreneurial orientation and innovation performance: roles of strategic HRM and technical turbulence

This study advances research on the return from entrepreneurial orientation by examining how a firm's internal system (i.e. strategic human resource management) and the external environment (i.e. technical turbulence) within which a firm operates interact in the relationship between entrepreneurial orientation and product innovation performance. Using a matched sample of 151 chief executive officers and other top executives from Chinese manufacturing firms, this study finds that entrepreneurial orientation is positively related to product innovation performance and that this relationship is stronger among firms implementing strategic HRM practices to a greater extent. Furthermore, the three-way interaction test indicates that the interactive effect of entrepreneurial orientation and strategic HRM practices on product innovation performance is stronger for firms operating in a less turbulent environment. Key points Entrepreneurial orientation positively impact product innovation performance. Strategic HRM and entrepreneurial orientation interact to positively impact product innovation performance. The interaction of strategic HRM and entrepreneurial orientation on product innovation performance is moderated by technical turbulence.