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Strategic Orientation Based Research Model of SME Performance for Developing Countries

Performance of Small and Medium Enterprises (SMEs) has been considered as one of the most important driving force behind economies of both developed and developing countries due to their multiple contributions. In most of the developing countries, the performance of the SMEs is a key issue today. Strategic orientation of SMEs is one of the most critical factors for their success. The SMEs in developing countries are considered less strategically oriented than those of developed counties. But most of the studies in developing countries have focused the effect of single strategic orientation coupled with other factors on SME performance. This study proposes a research model of SME performance based on strategic orientation for developing countries. The proposed model suggests significant interaction between three major strategic orientations and SME performance in developing countries. An interaction among market orientation, entrepreneurial orientation, learning orientation and SME performance has been incorporated into the model. The model contributes for better understanding of complex interactions between strategic orientations and SME performance in developing countries.