Prior Knowledge and New Product and Service Introductions by Entrepreneurial Firms: The Mediating Role of Technological Innovation

Abstract

Most research on new product and service development by entrepreneurial firms takes an individual‐level, prelaunch perspective or firm‐level postlaunch perspective. Our study examines two components of the new product and service introduction process: how entrepreneurs' prior knowledge underpins (1) firm technological innovation prior to the introduction of new products and services (prelaunch) and (2) postlaunch viability of those new products and services. Our findings, based on a series of analyses of data from 158 entrepreneurial firms, show that formal technological innovation fully mediates the relation between prior knowledge and the introduction of viable new products and services.

Acknowledgments

This study was supported by Faculty Research Leave Award to the first author by Saint Louis University. An early version of this research was presented at the 2007 Babson College Entrepreneurship Research Conference in Madrid, Spain.

Additional information

Notes on contributors

Jintong Tang

Jintong Tang is an assistant professor of management and entrepreneurship at John Cook School of Business, Saint Louis University.

Patrick J. Murphy

Patrick J. Murphy is an associate professor of management and a tenured member of DePaul University's entrepreneurship faculty.