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

Abstract

Survival in today’s dynamic environment requires organizations to have superior performance compared to competitors. In order to achieve this superior performance, this study aimed to examine the effect of both strategic orientation and innovation on organizational performance. It also examined whether innovation acted as a mediator between strategic orientation and organizational performance. Data were gathered from the three telecommunication companies that exist in Jordan. The data were then analysed using Structural Equation Modelling (SEM) and the results revealed that strategic orientation had a significant effect on innovation but not on organizational performance. It was also found that innovation significantly affected organizational performance. Finally, the results indicated that innovation mediated the path between strategic orientation and organizational performance, but only partially.