Strategic Orientations, Business Model, and Organizational Performance : The Core Competence-based View of Strategic Management

Abstract

This paper suggests a structural model that explains the relationship between strategic business orientations and organizational performance. We classified the strategic orientations as market orientation and technology orientation. We assumed that the core competence will mediate between them and the results of strategic management will be different by the business model type. The empirical test proved that the strategic orientations didn't affect on the organizational performance directly, but through the mediating variable, core competence, indirectly. In the group analysis, business model types have moderating effects between core competence and organizational performance. We could conclude that strategic business orientations are important to enhance a firm’s core competence. Also, appropriate business model selection is critical to get high business performance in the agile business environments.