A study examines which of 3 different strategy orientations of the firm (customer, competitive and technological) is more appropriate, when, and why it is so in the context of developing product innovations. A structural model of the impact of the strategic orientation of the firm on the performance of a new product is proposed. The results provide evidence for best practices as follows: 1. A firm wishing to develop an innovation superior to the competition must have a strong technological orientation. 2. A competitive orientation in high-growth markets is useful because it enables firms to develop innovations with lower costs, which is a critical element of success. 3. Firms should be consumer- and technology-oriented in markets in which demand is relatively uncertain - together, these orientations lead to products that perform better, and the firm will be able to market innovations better, thereby achieving a superior level of performance. 4. A competitive orientation is useful to market innovations when demand is not too uncertain but should be de-emphasized in highly uncertain markets.