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International Small Business Journal
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Moderating Influences on the Firm's Strategic Orientation-Performance Relationship

Alejandro Escribá-Esteve

University of Valencia, Spain, alejandro.escriba{at}uv.es

Luz Sánchez-Peinado

University of Valencia, Spain, luz.sanchez{at}uv.es

Esther Sánchez-Peinado

University of Valencia, Spain, esther. sanchez{at}uv.es

This article is focused on the factors that moderate the relationship between firm's strategic orientation and performance in small and medium-sized firms. Much prior research has focused simply on identifying environmental conditions conducive to the effectiveness of the strategic orientation approach. However, recent research has called for studies focused on investigating internal moderators of the strategic orientation-performance relationship. As a result, we propose a contingency framework, considering how corporate and competitive strategies, top management characteristics, and environmental conditions may moderate this relationship. Based on a survey of 295 small and medium-sized enterprises pertaining to seven manufacturing sectors, our study shows that the positive influence of the firm's strategic orientation may be moderated by the environment conditions, the previous experience of top management team, and the corporate and competitive strategies developed by the firm.

Key Words: competitive and diversification strategies • environmental characteristics • firm's strategic orientation • moderating effects • performance • top management teams' characteristics

International Small Business Journal, Vol. 26, No. 4, 463-489 (2008)
DOI: 10.1177/0266242608091174
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