Strategic orientations and firm performance: the role of information technology adoption capability

Abstract

PurposeThis study aims to investigate the multiple entrepreneurial, technology and marketing orientations effects on education service firm performance (FP) and the mediating role of information technology (IT) adoption capability.Design/methodology/approachEmpirical research based on 535 education service small and medium enterprises (SMEs) in Indonesia and Singapore. Various validity and reliability tests were carried on before the actual analysis was conducted using structural equation modeling.FindingsThe results conclude that IT adoption capability is crucial for entrepreneurial and technology orientation (TO) to produce higher FP. This finding supports that IT capability is effective at helping firms implement their strategic orientations (SOs). In addition, market orientation (MO) influence on FP is more direct than other orientations under investigation.Practical implicationsThis study suggests that SOs, particularly entrepreneurial and technology, enable managers to improve FP via the development of IT adoption capability. The result shows that firms with multiple SOs would be able to respond to market challenges, utilize new technology and become more innovative, which eventually yields higher performance.Originality/valueThis study extends the understanding of multiple SOs influence on FP using the mechanism of IT adoption capability.