Vol. 13 No. 1 (2025)
March 2025

Articles

How does strategic orientation influence the business performance of small and medium-sized enterprises during the COVID-19 pandemic?

Published 2025-03-01

  • My Thi Tra Nguyen
    • ,
  • Hung Trong Hoang
    • ,
  • Tri Duc Tran
    • ,
  • Anh Thi Nhat Tran
    • ,
  • Hien La Phuong Hoang

My Thi Tra Nguyen
University of Economics, Hue University

Hung Trong Hoang
University of Economics, Hue University

Tri Duc Tran
University of Economics, Hue University

Anh Thi Nhat Tran
University of Economics, Hue University

Hien La Phuong Hoang
University of Economics, Hue University

Abstract

Objective: The article aims to investigate the influence of strategic orientation (specifically market orientation, entrepreneurial orientation, and digital orientation) on small and medium-sized enterprises’ performance during the COVID-19 pandemic.

Research Design & Methods: We surveyed 265 small and medium-sized enterprises and employed structural equation modelling (SEM) to test the hypotheses developed.

Findings: Research results show that during the COVID-19 pandemic, while market orientation and digital orientation had a direct positive impact on business performance (ß= 0.230, p < 0.05 and ß= 0.236, p < 0.05, respectively), entrepreneurial orientation did not (ß= -0.038 and p > 0.05). Moreover, competitive advantage mediated the relationship between entrepreneurial orientation (indirect effect = 0.102) as well as market orientation and business performance (indirect effect = 0.046). However, this did not apply to the indirect relationship between digital orientation and performance. Finally, competitive intensity positively moderated the influences of market orientation and digital orientation on business performance.

Implications & Recommendations: Based on the research findings, the study has provided SMEs with some implications to assist them in improving business performance. These consisted of the concentration on customers, competitors, and the development of an internal management information system. Moreover, during the COVID-19 pandemic, the understanding and application of digital orientation were essential. The competitive advantage of SMEs maximises when the enterprise orients toward entrepreneurial activities.

Contribution & Value Added: Our study contributes to the strategic management of SMEs by investigating the influences of strategic orientation on business performance. The study also expands its scope by examining the mediating and moderating role of competitive advantage and competitive intensity, respectively.

Keywords

Strategic orientation, business performance, small and medium-sized enterprises, crisis

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Author Biography

My Thi Tra Nguyen

MSc. in Quantitative Finance (2017, UCD Michael Smurfit Graduate Business School, Ireland); Lecturer at the University of Economics, Hue University (Vietnam). Her research interests include business finance, business performance, entrepreneurship and innovation.

Hung Trong Hoang

PhD in Management (2014, The University of Adelaide, Australia), Associate Professor at University of Economics, Hue University. His research interests include services marketing and management, human resource management in services, and sustainable management. His research has been published in the Journal of Retailing and Consumer Services, Journal of Hospitality Marketing and Management, Journal of Services Marketing, International Journal of Human Resource Management, Australasian Marketing Journal, Australian Journal of Public Administration, International Journal of Manpower, among others. One of his papers has won a Best Paper Award in the Journal of Global Scholars of Marketing Science.

Tri Duc Tran

MSc. in iBusiness (2014, UCD Michael Smurfit Graduate Business School, Ireland); Doctoral student in Business (Birmingham City University, United Kingdom); Lecturer at University of Economics, Hue University (Vietnam). His research interests include e-commerce, digital transformation, sustainable development, entrepreneurship and innovation.

Anh Thi Nhat Tran

MSc. in International Business (2017, UCD Michael Smurfit Graduate Business School, Ireland); Lecturer at the University of Economics, Hue University (Vietnam). Her research interests include E-commerce, international business, and entrepreneurship.

Hien La Phuong Hoang

PhD in Business Administration (2019, University of Economics, Hue University, Vietnam); Lecturer at University of Economics, Hue University (Vietnam). Her research interests include entrepreneurship and innovation, Organizational culture, and Corporate social responsibility.

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