The Impact of Business Strategic Orientation on Organizational Performance with the Mediating Role of Innovation

Abstract

Global changes, transformations in strategic management, and the necessity of transitioning from programmatic orientations to cultural orientations to positively improve organizational performance have become essential. Strategic orientations are guiding principles that influence the organization's strategic programs and activities, and organizational success is generally attributed to strategic orientation. Strategic orientation reflects organizations' efforts to shape organizational behaviors in line with managerial strategies. The objective of this study is to examine strategic orientation and organizational performance, considering the mediating role of innovation. The statistical population of this study consisted of 1,200 employees and managers of a bus company, from which 291 individuals were selected as a sample based on a formula. In the end, 285 questionnaires were collected for analysis. The data collection tool in this study was a questionnaire. The research hypotheses were tested using the Smart PLS software. The results showed that strategic orientation significantly affects organizational performance. Strategic orientation significantly affects innovation. Innovation significantly affects organizational performance. Innovation has a mediating effect on the relationship between strategic orientation and organizational performance.