The authors seek to understand which of three different strategic orie
ntations of the firm (customer, competitive, and technological) is mor
e appropriate, when, and why it is so in the context of developing pro
duct innovations. They propose a structural model of the impact of the
strategic orientation of the firm on the performance of a new product
. The results provide evidence for best practices as follows: (1) A fi
rm wishing to develop an innovation superior to the competition must h
ave a strong technological orientation; (2) a competitive orientation
in high-growth markets is useful because it enables firms to develop i
nnovations with lower costs, which is a critical element of success';
(3) firms should be consumer- and technology-oriented in markets in wh
ich demand is relatively uncertain-together, these orientations lead t
o products that perform better, and the firm will be able to market in
novations better, thereby achieving a superior level of performance; a
nd (4) a competitive orientation is useful to market innovations when
demand is not too uncertain but should be de-emphasized in highly unce
rtain markets.