Predicting the Role of Strategic Orientation, Social Capital, and Strategic Flexibility for Strategic Renewal of SMEs

Dr. Asad Javed; Akhtar Nawaz; Ajmal Inayat; Muhammad Fareed

Authors

Dr. Asad Javed Lecturer, Department of Management Sciences, Hazara University, Mansehra, Pakistan
Akhtar Nawaz Lecturer, Department of Public Administration, Hazara University, Mansehra, Pakistan
Ajmal Inayat Lecturer, Department of Management Sciences, Hazara University, Mansehra, Pakistan
Muhammad Fareed Lecturer, Department of Management Sciences, Hazara University, Mansehra, Pakistan

Keywords:

Strategic orientation; social capital; strategic flexibility; strategic renewal, SMEs

Abstract

This study was carried out to evaluate the manners by which strategic orientation (SO), social capital
(SC) along with strategic flexibility (SF) might craft the prospects for initiation of strategic renewal
(SR) in SMEs. The direct effects of SO, SC on SR were tested. Furthermore, the mediating effects
of SF in the relation between SO-SR and SC-SO were also evaluated. To accomplish the purpose of
this cross-sectional study, data was gathered from the 539 managerial level employees of the ICT
sector SMEs through survey technique. To examine the association between variables, this study
utilized descriptive, correlation, regression, Baron and Kenney and Sobel tests. Results discovered
that SO and SC positively affect SF and SR in SMEs. Moreover, the mediating roles of SF between
the associations of SO, SC and SR were also established. This research entails novel insights for
strategic change management literature through emphasizing the SO, SC, and SF along with their
various dimensions. Thus, it provides new principles that might be helpful for initiating SR in SMEs.
Study entails imperative insight to theory through contribution of novel knowledge relating the
positive relationships of SO, SC and SR contextualizing SMEs. Additionally, analyzing the mediating
effects of SF in these associations, the study significantly contributes to the prevailing knowledge
bank on change management