This study advances research on the return from entrepreneurial orientation by examining how a firm's internal system (i.e. strategic human resource management) and the external environment (i.e. technical turbulence) within which a firm operates interact in the relationship between entrepreneurial orientation and product innovation performance. Using a matched sample of 151 chief executive officers and other top executives from C hinese manufacturing firms, this study finds that entrepreneurial orientation is positively related to product innovation performance and that this relationship is stronger among firms implementing strategic HRM practices to a greater extent. Furthermore, the three‐way interaction test indicates that the interactive effect of entrepreneurial orientation and strategic HRM practices on product innovation performance is stronger for firms operating in a less turbulent environment.
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Tang et al. (2014) studied this question.
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