Keywords: market orientation, radical innovation, risk taking, new ventures, China, transitional economies, entrepreneurship
Radical innovation, market orientation, and risk–taking in Chinese new ventures: an exploratory study
Market orientation and innovation are important for economic growth. We examine market orientation, innovation radicalness, and propensity towards risk–taking in the unique context of China's transitional economy. Analysis of 235 responses from Chinese new ventures, created during the past eight years, suggests that innovation radicalness is affected by both responsive and proactive market orientation. Propensity towards risk–taking also positively affects innovation radicalness. Our results on responsive market orientation are counter to findings in Western contexts. Implications of the findings are useful to improve our understanding of innovation and entrepreneurship in transitional economies, particularly in the Chinese context.