This research examines the impact of a firm's strategic orientation on the performance of new products. The authors propose a structural model that links the firm's strategic orientation (customer, competitive, and technological) to the characteristics of the innovations and their market performance. The study hypothesizes that the firm's strategic orientation influences the innovation's characteristics and subsequent market performance, which is moderated by the firm's environment. Key findings include: 1. **Technological Orientation**: Firms need a strong technological orientation to develop superior innovations. 2. **Competitive Orientation**: In high-growth markets, a competitive orientation is beneficial as it enables firms to develop innovations with lower costs. 3. **Consumer Orientation and Technological Orientation**: In markets with uncertain demand, firms should be consumer-oriented and technology-oriented to develop better-performing products. 4. **Competitive Orientation in Uncertain Markets**: While competitive orientation is useful in less uncertain markets, it should be de-emphasized in highly uncertain markets. The study also explores the role of interfunctional coordination in enhancing the synergies between the three strategic orientations. The results suggest that the appropriateness of a given strategic orientation is not unconditional and depends on the market environment. The research provides insights into how firms can optimize their strategic orientations to achieve superior performance in new product development.This research examines the impact of a firm's strategic orientation on the performance of new products. The authors propose a structural model that links the firm's strategic orientation (customer, competitive, and technological) to the characteristics of the innovations and their market performance. The study hypothesizes that the firm's strategic orientation influences the innovation's characteristics and subsequent market performance, which is moderated by the firm's environment. Key findings include: 1. **Technological Orientation**: Firms need a strong technological orientation to develop superior innovations. 2. **Competitive Orientation**: In high-growth markets, a competitive orientation is beneficial as it enables firms to develop innovations with lower costs. 3. **Consumer Orientation and Technological Orientation**: In markets with uncertain demand, firms should be consumer-oriented and technology-oriented to develop better-performing products. 4. **Competitive Orientation in Uncertain Markets**: While competitive orientation is useful in less uncertain markets, it should be de-emphasized in highly uncertain markets. The study also explores the role of interfunctional coordination in enhancing the synergies between the three strategic orientations. The results suggest that the appropriateness of a given strategic orientation is not unconditional and depends on the market environment. The research provides insights into how firms can optimize their strategic orientations to achieve superior performance in new product development.