“…The direct influence of the uncertainty of market, competition, and technology on technological innovation has been examined (Li et al, 2006a, b;Zhou, Yim, & Tse, Li et al (2006b); Zhou et al (2005b) Direct influence of uncertainty on technological innovation Li et al (2005); Tan and Litschert (1994); Tan and Tan (2005) Indirect influence of uncertainty on relationship between NPD and firm performance Tan and Litschert (1994); Tan and Tan (2005) Firms in Chinese context will prefer a more defense-oriented strategy when environment uncertainty is increasing Zhou et al (2005b) Most of the market forces will positively influence breakthrough innovation Tan and Litschert (1994); Tan and Tan (2005) Classify environment uncertainty into three kinds: complexity, dynamism, and hostility Li (2001) Environment factors can mediate the relationship between product innovation strategy and new technology venture performance Influence of government Huang et al (2004) There are five important components in the framework of innovation policy Liu and White (2001) Chinese NIS has three levels: primary actors, secondary actors, and institutions Huang et al (1999) In steel industry, many government departments have the right to intervene in the firm's R&D process 2005b). Researchers have also explored the indirect influence of these factors on the relationship between new product development (NPD) and firm performance (Li et al, 2005;Tan & Litschert, 1994;Tan & Tan, 2005).…”