Proactive vs. responsive market orientation in enhancing new product creativity in SMEs in B2B markets: The moderating role of market turbulence

This study aims to identify the antecedents of new product (NP) creativity of SMEs in the B2B industry and their relationship with NP performance based on the SPP (Sources of Advantage – Positional Advantage – Performance Outcome) Framework. Particularly, this study distinguishes market orientation into proactive market orientation and responsive market orientation to identify their differential effects on NP creativity. It also investigates the moderating effect of market turbulence relationship between market orientation and NP creativity. A survey was conducted with 313 B2B SMEs, and the hypotheses regarding the relationships between market orientation, NP creativity were tested. The results supported all hypotheses except for the effect of responsive market orientation on novelty. Further, proactive market orientation (PMO) was shown to have a stronger influence on developing novel products while responsive market orientation (RMO) had a stronger influence on the development of meaningful products. Additionally, the findings suggest that under conditions of higher market turbulence, responsive market orientation (RMO) may lead to greater improvements in both new product novelty and meaningfulness. This study provides academic and practical implications by highlighting the differential impacts of the two types of market orientation on new product creativity and the moderating role of market turbulence. • For new product development in B2B SMEs, • Proactive market orientation (PMO) has a stronger impact on novel products development. • Responseive market orientation (RMO) has a stronger impact on meaningful product development. • Under conditions of higher market turbulence, RMO may lead to greater improvements in both new product novelty and meaningfulness. • Developing creative products plays an important role in gaining competitive advantage.