Strategic orientation and business performance

Abstract

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.

Effects of Sustainability and Technology Orientations on Firm Growth: Evidence from Chinese Manufacturing

“…We summarized the prior literature in Table 1, and it shows that the majority of prior literature in the field of strategic orientations focused on a particular strategic orientation and its effect on firm performance, among which entrepreneurial orientation and market orientation have received most attention [21,26,27]. Firms with a market orientation are able to capture market opportunities and customer demand, resulting in better firm performance [28,29]. However, it may also have an adverse effect on firm performance after a crisis [30].…”

“…For the technology orientation, Gatignon and Xuereb examined its role in enhancing the success of new products' development, and they suggested that firms with high technology orientation are more likely to develop new products and processes [19]. However, the direct relationship between technology orientation and firm performance has received less attention in the literature compared to market orientation [28], and the associations between these two constructs remains inconclusive. Specifically, Lee, Dedahanov, and Rhee argued that the level of technology orientation has a positive relationship with firm's innovation performance [34]; the results in the study by Voss and Voss offered little support for a positive association between technology orientation and firm performance [16]; With the sample of SME, Kocak, Carsrud, and Oflazoglu found that technology orientation has a negative effect on firm performance [35].…”

The Effect of Strategic Orientation on Organizational Performance: The Mediating Role of Innovation

“…One of the most important pillars that has major implications for an organization's structure, activities, investments, relations with the market, and performance is strategy [23]. Having a strategy helps organizations find solutions to problems, create new capabilities, and improve business performance [11] by allowing organizations and the managers to gather specific resources, recognise opportunities for providing valued products and services, and to convey those products and services for higher profits [12].…”

“…Furthermore, an organization that is guided by technology has the opportunity to accumulate vast technological knowledge stores by past experience and processes which might be used to its advantage [58]. A technology oriented firm seeks to acquire new and advanced technologies to develop new processes, products, and services, even though the rate of technological change within its industry might affect its technological adoption or development [12].…”

“…Strategy can be utilized as a problem solving tool that at the same creates new capabilities and improves performance [11]. A strategy can also provide a framework that allows an organization and its managers to assemble specialized assets, to identify opportunities for providing valued products and services to customers, and to deliver those products and services for higher profits in the marketplace [12]. However, not all firms respond to changes in the environment in the same way.…”