There is an emerging recognition in the strategy field that differences in organisation forms represent firms’ capability to gain benefit from investing in technology. This study has intention to add to this stream of research by proposing the technological turbulence as a primary contingency factor focusing on strategic orientation as main determinant of firm performance. The result is expected to provide considerable suggestion on how to match strategic orientation with various level of technological turbulence.
This study uses quantitative approach with structural equation model to understand the moderating effect of information technological turbulence on the relationship between strategic orientation and firm performance. The 390 small and medium enterprises (SMEs) in Indonesia contributes to the research as randomly selected respondents.
The result shows how the technological turbulence influences managerial decision-making processes under an opportunity-based paradigm. However, SME managers face lack of capability to deal with high technological turbulence.
This study uses cross section data at the SMEs context in Indonesia.
This study suggest that the initiative to encourage SMEs to adopt information technology should consider the SME capability to utilise the information technology.
The research gap challenges a question from previous literature on how long firms retain a given capability to deal with dynamic environment. This study has intention to add to the stream of research by proposing the information technological turbulence as a primary contingency factor focusing on strategic orientation as main determinant of firm performance.
Pratono, A.H. (2016), "Strategic orientation and information technological turbulence: contingency perspective in SMEs", Business Process Management Journal, Vol. 22 No. 2. https://doi.org/10.1108/BPMJ-05-2015-0066Download as .RIS
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