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...
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2023-03-01
|
| Series: | Administrative Sciences |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2076-3387/13/3/74 |
| _version_ | 1797614173629186048 |
|---|---|
| author | Sofik Handoyo Sri Mulyani Erlane K. Ghani Slamet Soedarsono |
| author_facet | Sofik Handoyo Sri Mulyani Erlane K. Ghani Slamet Soedarsono |
| author_sort | Sofik Handoyo |
| collection | DOAJ |
| 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). |
| first_indexed | 2024-03-11T07:06:03Z |
| format | Article |
| id | doaj.art-e494b4b3d14e4480ae7e5c794e30bf9d |
| institution | Directory Open Access Journal |
| issn | 2076-3387 |
| language | English |
| last_indexed | 2024-03-11T07:06:03Z |
| publishDate | 2023-03-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Administrative Sciences |
| spelling | doaj.art-e494b4b3d14e4480ae7e5c794e30bf9d2023-11-17T08:57:18ZengMDPI AGAdministrative Sciences2076-33872023-03-011337410.3390/admsci13030074Firm Characteristics, Business Environment, Strategic Orientation, and PerformanceSofik Handoyo0Sri Mulyani1Erlane K. Ghani2Slamet Soedarsono3Faculty of Economics and Business, Universitas Padjadjaran, Bandung 40113, IndonesiaFaculty of Economics and Business, Universitas Padjadjaran, Bandung 40113, IndonesiaFaculty of Accountancy, Universiti Teknologi MARA, Puncak Alam 42300, Selangor, MalaysiaIndonesia Ministry of National Development Planning, Jakarta 10310, IndonesiaThe 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).https://www.mdpi.com/2076-3387/13/3/74firm characteristicsbusiness environmentstrategic orientationperformancemanufacturing |
| spellingShingle | Sofik Handoyo Sri Mulyani Erlane K. Ghani Slamet Soedarsono Firm Characteristics, Business Environment, Strategic Orientation, and Performance Administrative Sciences firm characteristics business environment strategic orientation performance manufacturing |
| title | 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_short | Firm Characteristics, Business Environment, Strategic Orientation, and Performance |
| title_sort | firm characteristics business environment strategic orientation and performance |
| topic | firm characteristics business environment strategic orientation performance manufacturing |
| url | https://www.mdpi.com/2076-3387/13/3/74 |
| work_keys_str_mv | AT sofikhandoyo firmcharacteristicsbusinessenvironmentstrategicorientationandperformance AT srimulyani firmcharacteristicsbusinessenvironmentstrategicorientationandperformance AT erlanekghani firmcharacteristicsbusinessenvironmentstrategicorientationandperformance AT slametsoedarsono firmcharacteristicsbusinessenvironmentstrategicorientationandperformance |