How entrepreneurial orientation improves new-venture performance: the mediating role of innovation ambidexterity

Purpose - This study aims to examine various facets of entrepreneurial orientation (EO), including innovativeness, proactiveness and risk-taking. It investigates their linkage to the performance of new ventures. It further analyzes the mediating role of innovation ambidexterity. Design/methodology/approach - The study uses a judgmental sampling technique to gather data from 342 new ventures. The analysis is conducted using PLS-SEM to predict the potential consequences of EO on new venture performance (NVP) through ambidextrous innovation. Findings - The results show that innovation ambidexterity mediates between EO and NVP. New ventures should explore new opportunities for long-term growth while exploiting the existing opportunities for short-term growth and survival. Originality/value - The research focuses on interpreting how different EO components are related to innovation ambidexterity. It also investigates what role of innovation ambidexterity plays as a mediator in the correlation of EO-NVP. It expands the current discussion on EO-venture performance plus innovation ambidexterity considering new ventures in emerging economies.