The impact of a firm’s strategic orientations on its degree of internationalization and alliance formation intentions / Mehdi Mohammadi Poorangi

Mehdi Mohammadi, Poorangi (2015) The impact of a firm’s strategic orientations on its degree of internationalization and alliance formation intentions / Mehdi Mohammadi Poorangi. PhD thesis, Universiti Malaya.

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Abstract

The initial aim for this thesis is to extend strategic alliance literature by examining the role of strategic orientation as a three-factor model (i.e. entrepreneurial, market and innovation orientation) on the degree of internationalization (Mediator Variable) and the formation of strategic alliances (Dependent Variable) under different regimes of environmental dynamism in the context of Malaysian and Iranian small and medium size manufacturing firms. The setting of this study is SMEs (small and medium enterprise) in Iran and Malaysia in order to draw some theoretical and practical implications for both small and medium enterprise academics and practitioners, as data was collected from manufacturing small and medium enterprise CEOs in both countries. The SEM analysis software employed in this is smart PLS and Amos and the research instrument was a structured survey questionnaire using close ended questions. The questionnaire was emailed to a list of randomly selected CEOs of manufacturing SMEs in Malaysia and Iran. A total of 378 completed questionnaires were received and the response rate is calculated to be 18.9 %. In addition, as this thesis examines causal relationships among the underlying constructs based on empirical evidence, the quantitative approach is considered most suitable. There were 14 hypotheses tested across the two countries examined in the first set of tests. Then the application of mediation factors to both models separately and the 14 hypotheses tested again to yield a country-by-country result. Based on the findings of this study the synergistic effect of Market Orientation, Entrepreneurial Orientation and Innovation Orientation are better predictors of intention to form strategic alliances compared to their impact as individual factors in all models. This research makes advances to the network theory in two ways. First, it introduces three different types of organizational orientation as antecedents of a firm’s tendency to form strategic alliance. It is important because research on networks and alliances has not been examined antecedents of firm’s tendency to develop networks sufficiently. Secondly, incorporating the contingency hypothesis within the network theory this research found that the variations in forming alliances among firms are contingent upon the level of perceived dynamism. This is significant in that, prior research has not determined the extent to which dynamism as a macro-environmental factor influences firms’ tendency to develop networks of allies. This study points to several implications based on this logic for executives of small firms and aims to assist them in making choices that enable them to navigate their performance in a better direction given their resource liabilities. These implications spring from firm orientation known as “strategic orientation” that is relatively influence all other strategic choices and develop firm strategic approaches toward market, competitor and consumers. It can therefore lead to different identifiable behaviours and posture in firms that occur over time in different contexts. Hence, this study was able to offer a set of general insights into the managerial behaviours and decision-making of executives which could be useful for leading the performance of their firm.

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