The relationship between strategic orientation and sme firm performance: developing a conceptual framework

Abstract

This paper develops a conceptual framework for an intended study which will examine the effect of strategic orientation (SO) on firm performance among SMEs. SO is best described as the strategic directions which are put into practice by a firm to produce continuous superior performance. Although it has been argued that SO has a positive effect on firm performance, the idea of direct relationship between SO and firm performance is universal and too simplistic. Previous studies have identified several components of SO but this paper aims to take an integrative perspective of market orientation, entrepreneurial orientation and interaction orientation and their relationship with firm performance.