Exploiting Innovation in Dubai SMEs: The Effect of Strategic Orientation on Organizational Determinants

Abstract

This study investigates the role of strategic orientations of small- and medium-sized enterprises (SMEs) in an emerging market, namely Dubai in the United Arab Emirates. It uses the business-level typology of Miles and Snow (prospector, analyzer, and defender) to examine the effect of strategic orientations on organizational determinants (organizational culture, technology orientation, alliance and cooperation, and market orientation) and their consequences in terms of innovation. Drawing upon data from 189 Dubai SMEs, the findings reveal that there are differences in the organizational determinants with prospector and defender orientations, with analyzer orientations falling in-between. Prospectors place more reliance than defenders on developing organizational culture, technology orientation, alliance and cooperation, and market orientation. Constant changes in the Dubai business and market environments seem to affect SMEs' strategic orientations and smaller SMEs are more likely to be analyzers than the SMEs employing over 100 staff. This study provides useful insights into the role of strategic orientations and organizational determinants of Dubai SMEs to accomplish successful innovation results.