Unlocking the complementary effects of multiple strategic orientations on firm performance: an interplay of entrepreneurial, sustainability and market orientation

Abstract

PurposeThis study aims to investigate how the interplay of multiple strategic orientations influences the growth-based performance of small and medium enterprises (SMEs). The authors have specifically examined the direct and complementary effects of multiple strategic orientations [i.e. entrepreneurial orientation (EO), market orientation (MO) and sustainability orientation (SO)] on firm performance.Design/methodology/approachThe data have been collected from 410 SMEs operating in Pakistan.FindingsThe results revealed that the multiple strategic orientations (EO, SO and MO) have positive direct as well as complementary effects on SMEs' growth-based performance. Specifically, the joint effects of EO and MO were shown higher than other combinations and complementarities. Moreover, the direct effect of SO is found far lesser than the joint implementation of SO with either EO or MO.Originality/valueThis study provides key insights into corporate sustainability, strategic orientations and SME performance literature. The implications for theory, practice, policy and future research are discussed.

Sustainability-oriented corporate strategy: green image and innovation capabilities

“…Several studies have examined the role of sustainability-oriented corporate strategies in business performance (e.g. (Adomako et al, 2019;Khizar et al, 2023;Ruiz-Ortega et al, 2021),). Chistov et al (2023) studied the role of sustainability strategies in firm growth and found the importance of timing in the entrepreneurial process, demonstrating that including sustainability goals at a later, more established stage of the process offers much greater growth potential.…”

Entrepreneurial responsible orientation in small and medium businesses: the case of Pakistan

“…The review of the SO literature highlighted that organizations have proactively started to develop and deploy SO, not only due to the increasing pressures from stakeholders and the call for sustainable development but also because of the potential positive organizational outcomes of managing SO (e.g. Aboelmaged and Hashem, 2019;Jin et al, 2019;Muhammad Auwal et al, 2020;Khizar and Iqbal, 2020). To this end, sustainability-oriented firms reflect their inclination to behave in a socially and environmentally responsible manner to comply with the demands of stakeholders to achieve superior financial and nonfinancial performance benefits over their counterparts in the industry.…”