Effects of Strategic Orientation on SMEs Performance: Does Innovation Mediate the relationship?
- Post by: muhammad.mohiuddin@fsa.ulaval.ca
- February 3, 2022
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Strategic orientation and innovation are key determinants in accelerating the performance of small to medium-sized enterprises (SMEs). However, there is a lack of empirical evidence confirming the mediating effect of innovation on strategic orientation that contribute to SMEs performance. This study attempt to examine the mediating effect of product and process innovation on strategic orientation and explore whether the effect is partial or complete mediation on the performance of manufacturing SMEs. To achieve this research objective, data was gathered from 360 manufacturing SMEs using questionnaire survey and analyzed employing PLS-SEM. The results revealed that product and process innovation have positive and significative mediating effects on strategic orientations that translate to SME performance. This study posits that SMEs could proactively apply such strategies by emphasizing on innovation in their operations to enhance the market performance of manufactuting SMEs.