Firm Characteristics, Business Environment, Strategic Orientation, and Performance

The purpose of this study is to empirically examine the influence of firm characteristics (size, age, industry type, and ownership) on a firm’s strategic orientation. The business environment, namely market uncertainty and competition intensity, is also analysed in association with the firm’s strate...

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Published in:Administrative Sciences
Main Author: Handoyo S.; Mulyani S.; Ghani E.K.; Soedarsono S.
Format: Article
Language:English
Published: MDPI 2023
Online Access:https://www.scopus.com/inward/record.uri?eid=2-s2.0-85150991995&doi=10.3390%2fadmsci13030074&partnerID=40&md5=ffb917c9ab069e7109970c17e3b4dbf9
id 2-s2.0-85150991995
spelling 2-s2.0-85150991995
Handoyo S.; Mulyani S.; Ghani E.K.; Soedarsono S.
Firm Characteristics, Business Environment, Strategic Orientation, and Performance
2023
Administrative Sciences
13
3
10.3390/admsci13030074
https://www.scopus.com/inward/record.uri?eid=2-s2.0-85150991995&doi=10.3390%2fadmsci13030074&partnerID=40&md5=ffb917c9ab069e7109970c17e3b4dbf9
The purpose of this study is to empirically examine the influence of firm characteristics (size, age, industry type, and ownership) on a firm’s strategic orientation. The business environment, namely market uncertainty and competition intensity, is also analysed in association with the firm’s strategic orientation. Furthermore, the implication of strategic orientation for performance is tested. The study used 1024 data sets of 128 manufacturing firms listed on the Indonesia stock exchange from 2014 to 2021. Data panel regression and independent t-tests were employed for statistical analysis. Adopting Miles and Snow’s strategy typology framework, the findings indicated that the firm size, industry type, and competition intensity significantly influence the firm’s strategic orientation. Small firms preferred to adopt a proactive strategic orientation (prospector and analyser). Firms in the fast-moving consumer goods (FMCG) industry tended to adopt a proactive strategic orientation (prospector and analyser). Strategic orientation was found to positively and significantly influence firm performance. Firms that adopt a proactive strategic orientation (analyser and prospector) showed better performance than defensive ones (reactor and defender). © 2023 by the authors.
MDPI
20763387
English
Article
All Open Access; Gold Open Access; Green Open Access
author Handoyo S.; Mulyani S.; Ghani E.K.; Soedarsono S.
spellingShingle Handoyo S.; Mulyani S.; Ghani E.K.; Soedarsono S.
Firm Characteristics, Business Environment, Strategic Orientation, and Performance
author_facet Handoyo S.; Mulyani S.; Ghani E.K.; Soedarsono S.
author_sort Handoyo S.; Mulyani S.; Ghani E.K.; Soedarsono S.
title Firm Characteristics, Business Environment, Strategic Orientation, and Performance
title_short Firm Characteristics, Business Environment, Strategic Orientation, and Performance
title_full Firm Characteristics, Business Environment, Strategic Orientation, and Performance
title_fullStr Firm Characteristics, Business Environment, Strategic Orientation, and Performance
title_full_unstemmed Firm Characteristics, Business Environment, Strategic Orientation, and Performance
title_sort Firm Characteristics, Business Environment, Strategic Orientation, and Performance
publishDate 2023
container_title Administrative Sciences
container_volume 13
container_issue 3
doi_str_mv 10.3390/admsci13030074
url https://www.scopus.com/inward/record.uri?eid=2-s2.0-85150991995&doi=10.3390%2fadmsci13030074&partnerID=40&md5=ffb917c9ab069e7109970c17e3b4dbf9
description The purpose of this study is to empirically examine the influence of firm characteristics (size, age, industry type, and ownership) on a firm’s strategic orientation. The business environment, namely market uncertainty and competition intensity, is also analysed in association with the firm’s strategic orientation. Furthermore, the implication of strategic orientation for performance is tested. The study used 1024 data sets of 128 manufacturing firms listed on the Indonesia stock exchange from 2014 to 2021. Data panel regression and independent t-tests were employed for statistical analysis. Adopting Miles and Snow’s strategy typology framework, the findings indicated that the firm size, industry type, and competition intensity significantly influence the firm’s strategic orientation. Small firms preferred to adopt a proactive strategic orientation (prospector and analyser). Firms in the fast-moving consumer goods (FMCG) industry tended to adopt a proactive strategic orientation (prospector and analyser). Strategic orientation was found to positively and significantly influence firm performance. Firms that adopt a proactive strategic orientation (analyser and prospector) showed better performance than defensive ones (reactor and defender). © 2023 by the authors.
publisher MDPI
issn 20763387
language English
format Article
accesstype All Open Access; Gold Open Access; Green Open Access
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