RESEARCH ARTICLE
Does strategic fit matter in measuring organizational performance? An empirical analysis
Muhammad Farrukh,
Fanchen Meng,
Muhammad Sajid,
Imran Shahzad,
Corresponding Author
Muhammad Farrukh
School of Management and Economics, Beijing Institute of Technology, Beijing, China
Correspondence
Fanchen Meng, School of Management and Economics, Beijing Institute of Technology, Beijing, China.
Email: meng@bit.edu.cn
Search for more papers by this authorFanchen Meng
School of Management and Economics, Beijing Institute of Technology, Beijing, China
Search for more papers by this authorMuhammad Sajid
Lyallpur Business School, Government College University, Faisalabad, Pakistan
Search for more papers by this authorImran Shahzad
Postgraduate Centre, Limkokwing University of Creative Technology, Cyberjaya, Malaysia
Search for more papers by this authorMuhammad Farrukh,
Fanchen Meng,
Muhammad Sajid,
Imran Shahzad,
Corresponding Author
Muhammad Farrukh
School of Management and Economics, Beijing Institute of Technology, Beijing, China
Correspondence
Fanchen Meng, School of Management and Economics, Beijing Institute of Technology, Beijing, China.
Email: meng@bit.edu.cn
Search for more papers by this authorFanchen Meng
School of Management and Economics, Beijing Institute of Technology, Beijing, China
Search for more papers by this authorMuhammad Sajid
Lyallpur Business School, Government College University, Faisalabad, Pakistan
Search for more papers by this authorImran Shahzad
Postgraduate Centre, Limkokwing University of Creative Technology, Cyberjaya, Malaysia
Search for more papers by this authorFunding information: National Natural Science Foundation of China- NSFC, Grant/Award Number: 71972013; Humanities and Social Science Fund of Ministry of Education of China, Grant/Award Number: 17YJA630072
Abstract
Entrepreneurial orientation (EO) is a valuable organizational asset which is considered to be a driver of superior organizational performance (OP). However, some studies challenge this notion and show a negative link between EO and OP. This deviation may be rooted in the contingent-theoretic approach, which postulates the need to align an organization's strategic posture with various other factors to achieve strategic fit. Therefore, leaning on contingent-theoretic approach this research aims to test a direct and synergistic effect of EO and corporate social responsibility (CSR) on OP in the context of developing (Pakistan) and developed (United Kingdom) economies. A survey is conducted and the data are analyzed using partial least squares structural equation modeling (PLS-SEM). The results show a significant direct effect of EO and CSR on OP. In addition, we found that CSR significantly mediates the impact of EO on OP across both countries. This study suggests that specific strategic actions, such as EO and CSR, should be studied in combination with other strategic actions to provide a holistic understanding of OP.
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