Strategic Orientation and Performance of Istanbul Stock Market Businesses: Empirical Studies Based on Business, Information Systems, and Knowledge Strategic Orientation

Introduction

Strategic orientation involves the implementation of strategic directions that guide the activities of a firm to establish behaviors that achieve continuity in optimal performance for the business (Hakala, 2010; Liu and Fu, 2011; Jeyakodeeswari and Jeyanithila, 2013). Understanding strategic orientation dimensions is important in revealing organization’s chances and ability to align and adapt with its external environment (Choy and Mula, 2008; Avci et al., 2011) to secure competitive advantage for itself (Abiodun et al, 2011). Many organizations emphasize strategic orientation as a way to vitalize management and maintain their competitive advantage (Abdallah et al., 2014; Aloulou and Fayolle, 2005; Atuahene-Gima and Ko, 2001; Baker and Sinkula, 2009; Gatignon and Xuereb, 1997; Gao et al., 2007; Hakala, 2010; Hult et al., 2004; Jeong et al., 2006; Kaya and Seyrek, 2005; Kumar et al., 2012; Li, 2005; Masa’deh et al., 2010; Noble et al., 2002; Rhee et al., 2010; Salavou, 2005; Zehir et al., 2015;Zhou et al., 2005). Strategic orientation may help businesses adapt to the fast-changing market as well as obtain and maintain competitive advantage, which positively affects businesses’ performance (Altindag et al., 2011; Jiao et al., 2013; Obeidat et al., 2016; Shannak et al., 2012; Teece, 2007; Winter, 2003; Zott, 2003) by building possible dynamic capabilities (Zhou and Li 2010). Apart from exercising strategic orientation, firms are also encouraged to ensure alignment of different sets of organizational capabilities in order to pursue continuous innovation for sustainable success (Masadeh and Shannak, 2012; Thoumrungroje and Racela, 2013). Innovation is considered the best way to go in order to compete in the twenty first century as it fuels organizational growth, drives future success, and is the engine that allows organizations to sustain their viability (Lin and Chen, 2007). The various challenges faced by organizations have forced them to embrace innovation as an integral part of corporate strategy (Keskin, 2006). Therefore, innovation is well documented as an important driver of competitiveness, profitability and, productivity (O’Regan and Ghobadian, 2005). However, entrepreneurship studies rarely examine how strategic orientation affects the innovation and performance of businesses.