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International Firm's Strategic Orientations, Organizational Capabilities and Performance

International Firm's Strategic Orientations, Organizational Capabilities and Performance

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This research examines indirect and multiple relationships between strategic orientations and organizational capabilities, and their impact on the performance of international firms. The primary objective is to understand whether or not and when the three types of strategic orientations (customer orientation, technology orientation, and network orientation) generate organizational capabilities. These three orientations constitute the basic strategic asset of an organization. They prescribe organizational interactions with the customer, competitors, and partners and allow the organization to provide products and services that are tailored to market needs and achieve desirable performance. But our results show that the hypothesis regarding technology orientation is not supported. This study alsotries to demonstrate the moderating effect of a realized absorptive capacityon the firm's performance. A realized absorptive capacity is introduced as a moderating variablebetween organizational capabilities and performance. The empirical results confirm that absorptive capacity is the moderating variable between organizational capabilities and performance. This finding is consistent with the hypothesis that a realized absorptive capacity can benefit a firm in integrating external knowledge, and then transforming it into a competent firm.

Abstract

Ⅰ. Introduction

Ⅱ. Conceptual Framework

Ⅲ. Hypotheses Development

Ⅳ. Method

Ⅴ. Analysis and Results

Ⅵ. Discussion and Implications

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