Path Analysis to Management Performance of Small and Medium-sized Manufacturing Firms' Strategic Orientation

Abstract

In order to find ways to secure competitive advantage and realize sustainable growth for small and medium-sized manufacturing firms, this study conducted a path analysis from strategic orientation to management performance. Analysis results showed that customer orientation has a positive effect on dynamic competence. Also, technology orientation showed a positive effect on dynamic competence, with the exception of resource acquisition capability. In addition, dynamic competence showed a positive effect on management performance, with the exception of resource acquisition capability having insignificant effects on management performance. Finally, the mediating effect of dynamic competence was proven. In accordance to the results, to secure competitive advantage and realize sustainable growth for small and medium-sized manufacturing firms, it is important to establish a strategic orientations and expand and reinforce dynamic competence. This study provides managerial implications by understanding the competitive environment of small and medium-sized manufacturing firms and based on this, presenting strategic directions for enhancing the competitiveness of small and medium-sized manufacturing firms.