Market development strategy and process performance of knowledge-intensive SMEs in the epidemic era: a process-oriented perspective

Purpose This study analyzes in-depth how knowledge-intensive small and medium-sized enterprises (SMEs) can achieve higher new product development (NPD) process performance in the epidemic era and examine the internal development mechanism of knowledge-intensive SMEs in the process of continuous digital transformation. Design/methodology/approach This issue is tested with partial least squares on data collected via a survey conducted from November 2021 to February 2022. The sample comprises 487 knowledge-intensive SMEs operating in China. Findings The results indicate that one form of cross-functional ambidexterity, market development strategy (MDS), plays an important role in process performance from an inside-out financial perspective and an outside-in customer perspective. Simultaneously, product innovation efficiency (PIE) mediates the relationship between MDS and the above results. Big data analytics capabilities (BDACs) positively regulate the relationship between MDS and PIE. Research limitations/implications The authors do not consider other contingency factors. Future research should introduce influential factors such as leadership and competitive intensity to further distinguish the effects of MDS on NPD process performance. Practical implications The study findings offer suggestions to help knowledge-intensive SME managers better manage their NPD process by making better use of their limited resources in developing countries such as China. Originality/value This study is one of only a few to adopt a process-oriented perspective to specifically examine how one form of cross-functional ambidexterity, MDS, impacts knowledge-intensive SME process performance in the epidemic era. This study also extends the theoretical framework of cross-functional ambidexterity to BDAC research.