Strategic orientations in small business: A dynamic capability perspective

Abstract

Purpose: The main issue investigated in this empirical study is the relationships between strategic orientations as well as the role played by them to impact firm performance during economic instability. The respective moderating and mediating roles of dynamic capabilities and competitive advantage are also explored. Method: This quantitative study tested hypotheses of the 168 usable responses gathered from small businesses in the Tripoli area of Libya. Findings: The findings demonstrate the significance of strategic orientations in boosting the performance of Libyan small firms and underlined the moderating role of dynamic capabilities as mediated by competitive advantage. Practical implications: The study suggests that entrepreneurs in small business firms should utilize a mix of factors from entrepreneurial, learning, and market orientations through dynamic capabilities that improve performance sometimes via competitive advantage. Originality/value: This study is unique in extending the present theoretical knowledge of dynamic capabilities and their moderating role on the relationships between strategic orientations, competitive advantage, and firm performance.