The Relationship among Strategic Orientations, Organizational Innovativeness, and Business Performance

Abstract

Today's complex and competitive business environment restricts the managers to plan their futures strategically. Thus, strategic orientation approach is taking the place of traditional approach to strategic management by spreading strategic thinking to the employees like a corporate culture. The aims of this study are to explore the mutual relationships among market orientation, technology orientation, and organizational innovativeness, and to examine the joint effects of those key drivers on firm performance, and to advance the understanding of the role of the strategic orientations of the firms. Due to the general structure of the research model, a questionnaire survey on 161 manufacturing firms has been concluded. According to analysed data a strong relationship between strategic orientations and the firm performance is indicated. Foremost, the results show that product innovation can significantly assist a competitor-oriented firm in improving its financial performance, while a technology-oriented firm improving its growth and market performance.