The Influence of Market Orientation, Risk Taking and Innovative Performance on New Product Performance: A Case of Gauteng Province in South Africa

Product performance is crucial in any organisation because it can make or destroy the organisation. Positive new product performance could extend the life of an organisation and enable it to be competitive, both internally and externally, worldwide. The objective of this study was to examine the antecedents of new product performance among small and medium enterprises (SMEs) in the Gauteng province of South Africa. This study considered three of these drivers, namely market orientation, risk taking and innovative performance on product performance. A quantitative approach was implemented in which a survey questionnaire was used to collect data from 225 managers and staff members from SMEs in the Gauteng province of South Africa. The study used a non-probability convenience sampling technique to select respondents. Information was analysed through two software packages, namely the Statistical Package for the Social Sciences (SPSS version 26.0) and the Analysis of Moment Structures (AMOS version 26.0). The main goal of this research was to evaluate the influence of these three predictors on new product performance in SMEs. A confirmatory factor analysis was applied in examining and testing the relationships between observed constructs and their causal latent constructs while structural equation modelling helped in testing the hypothesised relationships among variables. The results of the investigation indicate that market orientation, risk taking and innovative performance have a meaningful impact on new product performance. This investigation concluded that to achieve greater new product performance, SMEs should expedite the levels of market orientation, risk taking and innovative performance.