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The Effects of Strategic Orientations and Perceived Environment on Firm Performance

Published in: Business
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  1. 1. THE EFFECTS OF STRATEGIC ORIENTATIONS AND PERCEIVED ENVIRONMENT ON FIRM PERFORMANCE Gergely Farkas University of Szeged DOKBAT International Bata Conference for Ph.D. Students and Young Researchers 23-24/4/2015 Faculty of Management and Economics of Tomas Bata University in Zlín
  2. 2. Introduction Entrepreneurial and learning orientation. Perceived environment and firm performance. Methodology Results Conclusion
  3. 3. ELI-ALPS is a new center of science on the Southern Great Plain of Hungary. Study of MSMEs in the region can help to create a science park around it.
  4. 4. Risk taking Proactiveness Innovativeness ENTREPRENEURIAL ORIENTATION Covin – Slevin 1989 Autonomy Competitive aggressiveness Lumpkin – Dess 1996
  5. 5. LEARNING ORIENTATION Learning organizationOrganizational learning Argyris – Schön 1978 Process focus Senge 1990 Cultural approach Commitment to learning Shared vision and purpose Open- mindedness Sinkula – Baker – Noordewier 1997
  6. 6. PERCEIVED ENVIRONMENT HostilityTurbulence How fast the technology changes in the industry. Naman – Slevin 1993 How hard to keep up with the competition. Covin – Slevin 1989
  7. 7. FIRM PERFORMANCE Return on sales Gross profit Net profit Number of employees Market Share Sales Profit Growth Return on investments Return on equity Return on assets Efficiency Li – Huan – Tsai 2008 Importance Satisfaction Gupta – Govindarajan 1984
  8. 8. METHODOLOGY When Where Who What In May of 2014. In a NUTS-2 region of Hungary. Sample is 337 MSME of the region. Part of a larger questionnaire. Online and paper based forms. Translated and created items. Semantic differential and Likert type scales. Why To uncover some secrets of firm performance with PLS SEM technique.
  9. 9. RESULTS Profit 0.462 Shared vision and purpose Innovativeness Proactiveness Environmental turbulence Environmental hostility Financial resources Risk taking Growth 0.185 Efficiency 0.432 Commitment to learning -0.110 -0.147 0.235 0.104 0.167 Open- mindedness
  10. 10. CONCLUSION Rapid changes, innovation and learning may be good for firms in the long term. Proactiveness helps firms to be efficient. The firms should grow in a safe environment. Firms need employees who have shared vision to create more profit . A science park should be a place where people can share they visions in a safe environment; and where is enough patient to wait for the fruits of R&D.
  11. 11. Thank you for your attention! Gergely Farkas University of Szeged Faculty of Economics and Business Administration