Strategic orientation and business performance

2015 ◽  
Vol 53 (10) ◽  
pp. 2287-2302 ◽  
Author(s):  
Yahya Al-Ansaari ◽  
Hakim Bederr ◽  
Chuanhai Chen
Keyword(s):  
Market Orientation ◽  
United Arab Emirates ◽  
Business Performance ◽  
Emerging Market ◽  
Future Research ◽  
Content Type ◽  
Strategic Direction ◽  
Strategic Orientations ◽  
Positive Effect

Purpose – The purpose of this paper is to examine the role of strategic orientations (technology, alliance, and market orientations) of small and medium-sized enterprises (SMEs) in an emerging market, namely Dubai in the United Arab Emirates. Design/methodology/approach – Drawing upon data from 200 Dubai SMEs, this study uses a structured survey that was developed from a methodical literature review. Both descriptive and inferential statistics were used to evaluate the findings. Findings – The findings revealed that market orientation has a positive effect on business performance compared to technology and alliance orientations within SMEs in the Dubai marketplace. Research limitations/implications – This study offers SMEs a better understanding of their strategic orientations to enhance business performance. However, this study is limited to only SMEs operating in the Dubai marketplace. Future research could also look at other markets and use qualitative research methods. Originality/value – This study provides important insights that could guide SMEs in their understanding of strategic orientations and the benefits for business performance. These findings reinforce the growing empirical evidence of the positive effect of market orientation, as being a strategic direction for SMEs, on business performance.

Exploiting Innovation in Dubai SMEs: The Effect of Strategic Orientation on Organizational Determinants

2014 ◽  
Vol 11 (06) ◽  
pp. 1450039 ◽  
Author(s):  
Yahya Al-Ansaari ◽  
Simon Pervan ◽  
Jun Xu
Keyword(s):  
Organizational Culture ◽  
Market Orientation ◽  
United Arab Emirates ◽  
Emerging Market ◽  
Strategic Orientations ◽  
Organizational Determinants ◽  
Technology Orientation ◽  
Miles And Snow ◽  
Culture Technology

This study investigates the role of strategic orientations of small- and medium-sized enterprises (SMEs) in an emerging market, namely Dubai in the United Arab Emirates. It uses the business-level typology of Miles and Snow (prospector, analyzer, and defender) to examine the effect of strategic orientations on organizational determinants (organizational culture, technology orientation, alliance and cooperation, and market orientation) and their consequences in terms of innovation. Drawing upon data from 189 Dubai SMEs, the findings reveal that there are differences in the organizational determinants with prospector and defender orientations, with analyzer orientations falling in-between. Prospectors place more reliance than defenders on developing organizational culture, technology orientation, alliance and cooperation, and market orientation. Constant changes in the Dubai business and market environments seem to affect SMEs' strategic orientations and smaller SMEs are more likely to be analyzers than the SMEs employing over 100 staff. This study provides useful insights into the role of strategic orientations and organizational determinants of Dubai SMEs to accomplish successful innovation results.

The relationship between EFQM enablers and business performance

2019 ◽  
Vol 30 (4) ◽  
pp. 684-706 ◽  
Author(s):  
Dimitrios Kafetzopoulos ◽  
Katerina Gotzamani ◽  
Dimitrios Skalkos
Keyword(s):  
Factor Analysis ◽  
Quality Management ◽  
Business Performance ◽  
Innovation Performance ◽  
Equation Modeling ◽  
Future Research ◽  
Content Type ◽  
Mediating Role ◽  
Efqm Model

PurposeThe purpose of this paper is to examine the extent to which the five European Foundation for Quality Management (EFQM) model enablers, as the latent factor “enabler excellence,” are associated with business performance, taking into consideration the mediating role of innovation in this relationship.Design/methodology/approachThe analysis followed in order to investigate the relations among the various constructs of the proposed model includes an initial exploratory factor analysis, followed by confirmatory factor analysis and finally structural equation modeling.FindingsAccording to the study findings, “enabler excellence” and innovation performance directly contribute to business performance. Moreover, this paper concludes that innovation performance partially mediates the effect of excellence enablers on business performance.Research limitations/implicationsThis study does not separate between radical and incremental innovation; thus, it would be very interesting to explore this issue in future research. Moreover, it might be useful for researchers to reassess the proposed relationships examining the mediating role of organizational culture.Practical implicationsThis study offers clear implications for managers, proving that they should give higher emphasis on quality management (QM) and the four dimensions of innovation in order to achieve increased performance.Originality/valueBased on the multidimensional structure of the EFQM model, this empirical study determines the contribution of QM to business performance taking into consideration the role of innovation performance as a mediator in this relationship.

Direct and indirect effect of entrepreneurial orientation, family involvement and gender on family business performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Erny Rachmawati ◽  
Suliyanto ◽  
Agus Suroso
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Family Businesses ◽  
Future Research ◽  
Content Type ◽  
The Family ◽  
The Relationship

PurposeThis study aims to determine the direct effect of entrepreneurial orientation on family business performance. This study also discusses the role of family involvement as a mediating variable and the role of gender as a moderating variable in the relationship between entrepreneurial orientation and family business performance.Design/methodology/approachA total of 328 hotels in Yogyakarta, Indonesia, were selected as samples by the convenience sampling method. Primary data is collected through structured questionnaires that are delivered by themselves to key people in the hotel such as owners, directors and key staff (HRD, financial, relationship). Hypotheses are tested by structural equation modeling procedures using AMOS 22.0. Sobel test is used to determine the indirect effect of the mediation variable.FindingsThe results showed that entrepreneurial orientation had no significant effect on family business performance. Family involvement acts as a full mediation in the relationship between entrepreneurial orientation and family business performance. Gender acts as a moderating variable that can strengthen the relationship between entrepreneurial orientation and family business performance. The results showed support for previous research.Research limitations/implicationsThe results of the study cannot conclude the national family business because it adopts convenience sampling and the sampling area is limited in Yogyakarta. Future research can use a larger sample. This study only researches hotels managed by family businesses, so it is not feasible to conclude for family businesses in general. Future research may choose to use several types of family businesses so that more varied results can be obtained. Future research could also compare hotels managed by family businesses with non-family businesses. The results also found that in addition to gender roles, respondent heterogeneity was an important component in the study of social identity. Therefore, research examining the influence of different cultures on the relationship between entrepreneurial orientation and family business performance should be an extraordinary topic for future study. Other results from this study also indicate that there is a role for religion in improving hotel performance. Future research is needed to further explore Islamic business modeling for family businesses.Practical implicationsThis finding has significant implications that can help family businesses in developing strategies that are suitable for business management. Entrepreneurial orientation occupies a strategic position in developing sustainable competitive advantage in the family business of the tourism sector especially the hotel business in Yogyakarta for the better. Besides, the results of the study also showed that entrepreneurial orientation had no significant effect on performance. This relationship becomes significant when combined with active family involvement. This finding also shows that entrepreneurial orientation has the potential to have a more beneficial effect because of the active involvement of the family in helping with business management, alleviating business-related problems, and having a significant influence when the family also acts as management.Social implicationsResearch findings indicate the role of gender in strengthening the relationship between entrepreneurial orientation and family business performance. This provides a good position for women in the social environment to show achievement. To place women on the side of gender equality and justice in the family business in Indonesia. By opening wider access for Indonesian women in the realm of business management, expanding women's participation in a family business, increasing the role of control for women, and increasing women's knowledge and skills to increase the benefits in managing family businesses so that they have sustainable resilience in the face of global competition.Originality/valueThe results of this study provide a new model in providing an overview of the direct and indirect roles (mediating and moderating) in the assessment of family business performance. This study uses three variables which are important in performance appraisal, namely entrepreneurial orientation (independent variable), family involvement (mediating variable) and gender (moderating variable). Where research that combines these four variables, directly and indirectly, has never been done before.

Entrepreneurial orientation and the mediating role of organisational learning amongst Indian S-SMEs

2019 ◽  
Vol 26 (5) ◽  
pp. 641-660 ◽  
Author(s):  
Stanzin Mantok ◽  
Harjit Sekhon ◽  
Gurjeet Kaur Sahi ◽  
Paul Jones
Keyword(s):  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Organisational Learning ◽  
Systematic Sampling ◽  
Small Scale ◽  
Content Type ◽  
Mediating Role ◽  
Strategic Orientations ◽  
Competitor Orientation

Purpose The purpose of this paper is to examine organisational learning as a mediator among small-scale manufacturing enterprises (S-SMEs) which comprise the majority of economic activity in an emergent/developing economy. This study offers further understanding regarding the mediating role of organisational learning in developing world economies, due to its potential regional influence. Design/methodology/approach A cross-sectional survey of Indian S-SMEs was undertaken from the District Industrial Center. The study employed a systematic sampling technique to contact owner/managers. Overall, 204 S-SMEs owners/managers participated in the study and 192 usable survey instruments were received. Findings The study offers novel insights to the following questions. First, the factors that prompt entrepreneurial orientation to achieve superior business performance, i.e. the antecedents of entrepreneurial orientation? The results reveal competitor orientation is an antecedent of entrepreneurial orientation that leads to an S-SME’s business performance. Second, the outcomes of entrepreneurial orientation, i.e. the consequences of entrepreneurial orientation? The study reveals organisational learning and business performance are the corollary of entrepreneurial orientation. Third, the examination of whether organisational learning mediates the relationship between entrepreneurial orientation and business performance? The findings found the effects of entrepreneurial orientation on business performance are, in part, mediated by organisational learning. Research limitations/implications Three study limitations are recognised. First, other strategic orientations, including technology orientation, production orientation and selling orientation are not included. Second, other constructs have a potentially significant relationship with market and entrepreneurial orientation, such as organisational capabilities, innovation and social context, were not considered. Third, the study is industry-sector specific and does not consider alternative sectors which also may play a potential role in economic development. Originality/value This study enhances the existing S-SME literature by identifying factors contributing to entrepreneurial orientation and its repercussions on business performance. For S-SMEs it adds credence to the role played by organisational learning in mediating the link between entrepreneurial orientation and business performance which potentially encourages owner/managers to dedicate increased time and resources towards creating and maintaining a conducive learning environment. The results support entrepreneurs in acknowledging the importance of competitor orientation during the emergence and development of entrepreneurial orientation, specifically in emerging economy contexts.

scholarly journals Effects of absorptive capacity and innovation spillover on manufacturing flexibility

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
José Pinheiro ◽  
Luis Filipe Lages ◽  
Graça Miranda Silva ◽  
Alvaro Lopes Dias ◽  
Miguel T. Preto
Keyword(s):  
Market Orientation ◽  
Absorptive Capacity ◽  
Structural Equation ◽  
Equation Modeling ◽  
Manufacturing Flexibility ◽  
Content Type ◽  
Production Cycles ◽  
Exploratory Innovation ◽  
Positive Effect

PurposeShifting demand and ever-shorter production cycles pressure manufacturing flexibility. Although the literature has established the positive effect of the firm's absorptive capacity on manufacturing flexibility, the separate role of the innovation competencies of exploitation and exploration in such a relationship is still under-investigated. In this study, the authors examine how these competencies affect manufacturing flexibility.Design/methodology/approachThe authors use survey data from 370 manufacturing firms and analyze them using covariance-based structural equation modeling (CB–SEM).FindingsThe results indicate that absorptive capacity has a strong, positive and direct effect on exploitative and exploratory innovation competencies, proactive and responsive market orientations, and manufacturing flexibility. The authors’ findings also demonstrate that the exploitative innovation competencies mediate the relation between responsive market orientation and manufacturing flexibility. Essentially, these exploitative innovation competencies produce a direct positive effect on manufacturing flexibility while simultaneously being a vehicle for absorptive capacity's indirect effects on it. An exploration innovation strategy does not significantly affect manufacturing flexibility.Originality/valueThis study contributes by combining key strategic features of firms with manufacturing flexibility, while providing new empirical evidence of the mediation of the exploitative innovation competencies in the relation between responsive market orientation and manufacturing flexibility.

Sensing and seizing in the apparel industry: the role of dynamic capabilities in fostering sustainable strategic orientations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nicolas Chevrollier ◽  
Fons Kuijf
Keyword(s):  
Dynamic Capabilities ◽  
Apparel Industry ◽  
Strategic Orientation ◽  
Incremental Innovation ◽  
Future Research ◽  
Content Type ◽  
Strategic Orientations ◽  
Inductive Research

Purpose This paper aims to explore how the dynamic capabilities sensing and seizing could support a sustainable (either instrumental or stewardship) strategic orientation in the apparel industry. Design/methodology/approach Through qualitative and inductive research design, ten companies from the Sustainable Apparel Coalition, specifically focusing on brands, were researched. Employees in strategic positions were interviewed. Subsequently, thematic analysis was realized to extract findings from both instrumental and stewardship organizations. Findings Instrumental organizations focus on increasing their brand, mainly by following market demands. They sense opportunities via a hierarchical organizational structure that allows for incremental innovation based on internal competition. Stewardship organizations believe in a collective approach toward conducting business effectively. While building a “sustainable case for business”, a stewardship-oriented company senses by involving their stakeholders and seeks unorthodox opportunities using a long-term internal compass as a beacon for decision-making. Originality/value Key capabilities are revealed that allow businesses and managers to reach higher levels of sustainability in a specific sector: the apparel industry. Especially the capabilities of stewardship-oriented companies and its ambidexterity provide a fertile base for future research at the nexus of organization development and sustainability.

scholarly journals The effect of entrepreneurial orientation variables on business performance in the SME industry context

2020 ◽  
Vol 32 (1) ◽  
pp. 35-62
Author(s):  
Ni Made Wahyuni ◽  
I Made Sara
Keyword(s):  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Textile Industry ◽  
Business Performance ◽  
Learning Orientation ◽  
Potential Contribution ◽  
Significant Positive Effect ◽  
Content Type ◽  
And Performance ◽  
Positive Effect

Purpose The purpose of this study is to provide new practical and theoretical insights into how small and medium-sized enterprises (SMEs) adjust and further develop business competencies, innovations and performance by using market orientation, learning orientation behaviors and entrepreneurial orientation. Design/methodology/approach The data was collected from manufacturing SMEs of textile products that had a number of employees between 5 and 99 people in the province of Bali, Indonesia, in 2016. Bali province was chosen as a research location because Bali was one of the tourism centers in Indonesia and even in the world was considered suitable for this research. It was because it had textile product industries that contributed in the fulfillment of the needs of tourism clothing, national economy, the fulfillment of fashion needs and foreign exchange contributors from non-oil exports (Industry and Trade Service of Bali). Findings Based on the results of descriptive and inferential analysis that has been conducted, it can be concluded that the answer to the problems and objectives that have been determined is market orientation, learning orientation and entrepreneurial orientation affect business performance through knowledge competence and innovation directly and its influence is significantly positive. But market orientation, learning orientation and entrepreneurial orientation do not directly have a significant positive effect on innovation through knowledge competence. Market orientation, learning orientation and entrepreneurship orientation indirectly have a significant positive effect on business performance through knowledge and innovation competencies. Originality/value The lack of studies in the existing literature underscores the potential contribution of this subsequent study. The novelty of the research is first to develop a concept of learning orientation that is linked to competence of knowledge, which this link has not been much expressed in the context of industry SMEs; second, to build the concept of innovation development of small and medium-sized industry of textile industry based on market orientation by strengthening the mediation role of competence of knowledge.

Strategic orientations, sustainable supply chain initiatives, and reverse logistics

2016 ◽  
Vol 36 (1) ◽  
pp. 86-110 ◽  
Author(s):  
Chin-Chun Hsu ◽  
Keah-Choon Tan ◽  
Suhaiza Hanim Mohamad Zailani
Keyword(s):  
Supply Chain ◽  
Reverse Logistics ◽  
Emerging Market ◽  
Equation Modeling ◽  
Sustainable Supply Chain ◽  
Ongoing Research ◽  
Content Type ◽  
Strategic Orientations ◽  
The Impact

Purpose – Global outsourcing shifts manufacturing jobs to emerging countries, which provides new opportunities for improving their economic development. The authors develop and test a theoretical model to predict first, how sustainable supply chain initiatives might influence reverse logistics outcomes and second, the impact of eco-reputation and eco-innovation orientation strategies on the deployment of sustainable supply chain initiatives. The paper aims to discuss these issues. Design/methodology/approach – The proposed new model of antecedents and outcomes of sustainable supply chain initiatives underwent a rigorous empirical test through structural equation modeling with samples from an emerging market. Findings – The results show that firms that implement sustainable supply chain initiatives can realize positive reverse logistics outcomes; the study also provides new insights into eco-innovation and eco-reputation strategic orientations as theoretically important antecedents of sustainable supply chain initiatives. Research limitations/implications – Though the authors identify three components of sustainable supply chain initiatives, other components could exist, and ongoing research should investigate them. Practical implications – The findings have important implications for managers in emerging markets seeking to initiate ecologically friendly business practices. The authors offer strong evidence of the benefits obtained from reverse logistics in sustainable supply chain initiatives. Policy makers and firms attempting to nurture sustainable supply chain initiatives should not overlook the important role of eco-reputation and eco-innovation strategic orientations, which the results identify as important enablers. Originality/value – This study offers evidence of the critical role of eco-reputation and eco-innovation strategic orientations in deploying sustainable supply chain initiative programs, as well as of their mutual effects. This study also offers empirical evidence that implementing sustainable supply chain initiatives leads to reverse logistics, creating value, and a new source of competitive advantages.

Entrepreneurial and market orientation interactive effects on SME performance within transitional economies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Robert Zacca ◽  
Saad Alhoqail
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Interaction Effect ◽  
Synergetic Effect ◽  
Transitional Economies ◽  
Interactive Effects ◽  
Testable Hypothesis ◽  
Future Research ◽  
Content Type ◽  
Strategic Orientations

Purpose The purpose of this study is to examine how the adaptive nature of market orientation (MO) and the risk-taking nature of entrepreneurial orientation (EO) might be integrated for a complementary and reinforcing synergetic effect on firm performance within transitional economies. Design/methodology/approach The paper suggests links between the EO and MO concepts and develops propositions informed by prior research and reasonable assumptions. The propositions aim to spur future research to uncover further evidence that validates the testable hypothesis. Findings In particular, the study calls for investigating the interaction effect of EO with MO on new product entry, market intelligence collection and processing competence. In addition, the study proposes research studies on whether EO’s interaction effect with MO will tend to mitigate risk in the development of breakthrough innovation and whether the interacting strategic orientations are creating a synergetic effect towards firm performance. Finally, the study recommends that research models should be tested and understood in consideration of conditions and circumstances from varying contexts, such as the small and medium enterprise sector within transitional economies and the media industry. Originality/value Whilst the performance implications of EO and MO, when modelled separately, have been extensively studied in developed and diversified market economies, studies are in the early stages of investigating the joint effect of EO and MO on firm performance, especially within transitional economies.

Impacts of strategic orientations on Saudi firm performance: is supply chain integration a missing link?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amin K. Alsadi ◽  
Wassim J. Aloulou
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Market Orientation ◽  
Supply Chain Integration ◽  
Future Research ◽  
Organizational Capability ◽  
Content Type ◽  
Research Perspectives ◽  
Strategic Orientations ◽  
Positive Direct

PurposeLittle previous research has investigated the relationships among strategic orientations, supply chain integration and firm performance. The purpose of this study is to advance a research model that examines the direct and indirect effects of strategic orientations via supply chain integration on firm performance in the Saudi transitional context.Design/methodology/approachThis study is based on data collected from a survey using questionnaires completed by 187 top management members of Saudi firms from different sectors. To analyse the data and test the proposed hypotheses, confirmatory factor analysis and structural equation modelling were conducted using the AMOS statistical analysis package.FindingsResults show that both market orientation and supply chain integration have a significant positive direct effect on Saudi firm performance. They also reveal that supply chain integration fully mediates the effect of technology orientation on firm performance, while partially mediating the effect of market orientation on firm performance.Research limitations/implicationsThis study contributes to the literature by showing how SCI could serve as an organizational capability that links strategic resources to firm performance. The main limitation of this study is that it was not possible to generalize the findings. Future research perspectives were proposed to address this limitation and add new insights to the field.Practical implicationsThe results could help decision-makers in Saudi firms choose the right strategic orientations and aid them in integrating their supply chains by sharing the necessary information and coordinating operations with key partners to enhance their firms' performance.Originality/valueThis study is one of the first to conduct such an investigation in the Saudi context. The study simultaneously examines the role of supply chain integration in linking strategic orientations to firm performance and fills a current research gap in such a transitional context.

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