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.