Organizational network and strategic business performance

Abstract

PurposeThe purpose of this paper is to address the key issues, how organizational networks influence the strategic business performance (SBP) through the mediating role of organizational flexibility, and the moderating role of entrepreneurial orientation (EO). Contextualizing small and medium enterprises in developing countries, the authors have developed and tested a theoretical model of SBP to provide a framework for analyzing its major antecedents.Design/methodology/approachThis research used a quantitative approach with cross-sectional data. The authors used correlation, regression and Baron and Kenny Approach (Causal Step Approach) for analyzing the data collected from 737 CEOs/MDs/owners of different small and medium enterprises to test the theoretical model developed for this study.FindingsFindings revealed that organizational flexibility mediates the relationship between organizational network and SBP. Furthermore, stronger EO strengthens the relationship between organizational flexibility and SBP.Originality/valueThis study contributes in two ways: first, it provides empirical evidences that how to flourish the mechanism of SBP in SMEs. Second, this work contributes to understand the effects of organizational networks, flexibility and EO on SBP.