Engaging Distributors’ Strategic Orientation in Fuzzy Front-End Innovation—Analysis Based on the Moderating Effects of CEO Alertness

Abstract

This study intends to investigate how the extra-role behavior of distributors’ FFE strategic orientation affects daily necessity manufacturers’ NPD (New product development) performance. This study also probes the moderating effects of FFE external environment uncertainties and CEOs’ alertness on this relationship. Data for this study were collected from different categories of daily necessity manufacturing companies, such as daily hygiene firms, food and beverage firms and daily electronics firms. The collected data were analyzed by structural equation modeling. The results show that distributors’ customer orientation has a positive impact on daily necessity manufacturers’ NPD performance. Furthermore, the results also show that FFE market uncertainty and FFE economic policy uncertainty negatively moderate the relationship, while CEO alertness has a positive moderating effect. This study indicates that the extra-role behavior (behavior that beyond one’s normal business duty) of distributors should utilize daily necessity manufacturers’ FFE customer orientation to help build greater NPD performance. It also shows that CEOs’ alertness is vital for daily necessity manufacturers to defend against FFE external environment uncertainties. This study closes the gap between FFE strategic orientation and daily necessity manufacturers’ NPD performance. This study also explores extra-role behavior and CEOs’ role in daily necessity manufacturers’ FFE innovation.