Promoting strategic performance through strategic orientation and strategic renewal: A moderated mediation model

Abstract

Purpose

The purpose of this paper is to explore the ways in which strategic orientation (SO) and strategic renewal (SR) could create the possibility for improving strategic performance (SP). The indirect effect of SO was also tested in this study. Furthermore, by using the moderated mediation model, the authors also investigated the moderating role of organizational ambidexterity (OA).

Design/methodology/approach

The results of this cross-sectional study are based on a survey conducted on 1,430 owner/managers of SMEs. To analyze the relationship among variables, this study used descriptive, correlation and hierarchical multiple regression approach.

Findings

Results revealed that SO positively affects SR and SP in SMEs. Furthermore, the mediating role of SR between the relationships of SO and SP was also confirmed. Moreover, OA strengthens the connection between SO, SR and SP.

Practical implications

The current study provides new insights for strategic planning and management by focusing on SO along with its different dimensions. Therefore, it provides new guidelines and a roadmap that would be helpful in achieving the objectives of SP.

Originality/value

The study makes significant contributions to the extant literature by adding new knowledge about the positive impact of SO on SP. Moreover, with the analysis of mediating role of SR in this relationship, the study has made significant addition to the existing literature on SP. Furthermore, moderated mediation model adds value to the existing body of knowledge.

Citation

Shah, H.A., Yasir, M., Majid, A., Yasir, M. and Javed, A. (2020), "Promoting strategic performance through strategic orientation and strategic renewal: A moderated mediation model", Management Decision, Vol. 58 No. 2, pp. 376-392. https://doi.org/10.1108/MD-04-2019-0536