Modeling the significance of strategic orientation for innovation capabilities and enterprise performance: evidence from Ethiopian SMEs
There is a lack of studies that analyze simultaneously how customer, competitive, and entrepreneurial orientations affect SMEs’ innovation capabilities and performance. Hence, the main goal of this study is to examine the significance and enhance understanding of strategic orientation in relation to...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2025-12-01
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| Series: | Cogent Business & Management |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23311975.2024.2440122 |
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| author | Aklilu Tukela Bekata Chalchissa Amentie Kero |
| author_facet | Aklilu Tukela Bekata Chalchissa Amentie Kero |
| author_sort | Aklilu Tukela Bekata |
| collection | DOAJ |
| description | There is a lack of studies that analyze simultaneously how customer, competitive, and entrepreneurial orientations affect SMEs’ innovation capabilities and performance. Hence, the main goal of this study is to examine the significance and enhance understanding of strategic orientation in relation to the innovation capabilities and performance of small and medium-sized enterprises (SMEs). This study used an explanatory research design and multi-stage sampling to gather primary data from the study area. The data and research hypotheses of the suggested structural regression model were examined using structural equation modeling (SEM), based on empirical data from 321 Ethiopian SMEs operating in Hawassa city. The SEM results indicate that small and medium-sized enterprises with a higher level of strategic orientation can ensure superior performance. The findings also indicate that innovation capabilities partially mediate the relationship between strategic orientation and SMEs performance. The study makes a valuable theoretical and practical contribution to the application of resource-based and dynamic capabilities theories within the context of SMEs. Furthermore, this study suggests that SMEs can leverage strategic insights to address the real-world challenges of entrepreneurship and innovation while offering practical solutions. Hence, strategic perspectives that spread acquired knowledge and new ideas throughout internal decision-making processes ultimately enhance SMEs’ innovation capabilities and performance. |
| format | Article |
| id | doaj-art-cf2523d3c60d4284ae7ee64feb31ac62 |
| institution | DOAJ |
| issn | 2331-1975 |
| language | English |
| publishDate | 2025-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Business & Management |
| spelling | doaj-art-cf2523d3c60d4284ae7ee64feb31ac622025-08-20T02:39:22ZengTaylor & Francis GroupCogent Business & Management2331-19752025-12-0112110.1080/23311975.2024.2440122Modeling the significance of strategic orientation for innovation capabilities and enterprise performance: evidence from Ethiopian SMEsAklilu Tukela Bekata0Chalchissa Amentie Kero1Management Department, Hawassa University, Hawassa, EthiopiaDepartment of Management, Jimma University, Jimma, EthiopiaThere is a lack of studies that analyze simultaneously how customer, competitive, and entrepreneurial orientations affect SMEs’ innovation capabilities and performance. Hence, the main goal of this study is to examine the significance and enhance understanding of strategic orientation in relation to the innovation capabilities and performance of small and medium-sized enterprises (SMEs). This study used an explanatory research design and multi-stage sampling to gather primary data from the study area. The data and research hypotheses of the suggested structural regression model were examined using structural equation modeling (SEM), based on empirical data from 321 Ethiopian SMEs operating in Hawassa city. The SEM results indicate that small and medium-sized enterprises with a higher level of strategic orientation can ensure superior performance. The findings also indicate that innovation capabilities partially mediate the relationship between strategic orientation and SMEs performance. The study makes a valuable theoretical and practical contribution to the application of resource-based and dynamic capabilities theories within the context of SMEs. Furthermore, this study suggests that SMEs can leverage strategic insights to address the real-world challenges of entrepreneurship and innovation while offering practical solutions. Hence, strategic perspectives that spread acquired knowledge and new ideas throughout internal decision-making processes ultimately enhance SMEs’ innovation capabilities and performance.https://www.tandfonline.com/doi/10.1080/23311975.2024.2440122Customer orientationenterprise performanceentrepreneurial orientationHawassa Cityinnovation capabilitiesstrategic orientation |
| spellingShingle | Aklilu Tukela Bekata Chalchissa Amentie Kero Modeling the significance of strategic orientation for innovation capabilities and enterprise performance: evidence from Ethiopian SMEs Cogent Business & Management Customer orientation enterprise performance entrepreneurial orientation Hawassa City innovation capabilities strategic orientation |
| title | Modeling the significance of strategic orientation for innovation capabilities and enterprise performance: evidence from Ethiopian SMEs |
| title_full | Modeling the significance of strategic orientation for innovation capabilities and enterprise performance: evidence from Ethiopian SMEs |
| title_fullStr | Modeling the significance of strategic orientation for innovation capabilities and enterprise performance: evidence from Ethiopian SMEs |
| title_full_unstemmed | Modeling the significance of strategic orientation for innovation capabilities and enterprise performance: evidence from Ethiopian SMEs |
| title_short | Modeling the significance of strategic orientation for innovation capabilities and enterprise performance: evidence from Ethiopian SMEs |
| title_sort | modeling the significance of strategic orientation for innovation capabilities and enterprise performance evidence from ethiopian smes |
| topic | Customer orientation enterprise performance entrepreneurial orientation Hawassa City innovation capabilities strategic orientation |
| url | https://www.tandfonline.com/doi/10.1080/23311975.2024.2440122 |
| work_keys_str_mv | AT aklilutukelabekata modelingthesignificanceofstrategicorientationforinnovationcapabilitiesandenterpriseperformanceevidencefromethiopiansmes AT chalchissaamentiekero modelingthesignificanceofstrategicorientationforinnovationcapabilitiesandenterpriseperformanceevidencefromethiopiansmes |