IMPACT OF STRATEGIC ORIENTATION ON THE PERFORMANCE OF BORN GLOBAL FIRMS: MODERATING EFFECT OF INTERNATIONALIZATION

Abstract

Born Global firms, rapidly emerging firms in the global economy, as the firms that start their operations in the international operation, have particular characteristics that impact their strategic orientations and, thus, their performance in international markets. This research aims to investigate the specific impacts of four Strategic Orientations on the performance of Born Global (BG) firms in Sri Lanka. The study also seeks to determine how the process of internationalization moderates these relationships, ultimately influencing firm performance. A cross-sectional survey was conducted using a structured questionnaire targeting 150 ICT firms registered with the Sri Lanka Export Development Board. A simple random sampling technique was used to select the sample from the target population, ensuring unbiased representation. Tested the measurement model using PLS-SEM, ensuring the reliability and validity of the constructs. Indicators such as Cronbach’s alpha and composite reliability were utilized to assess internal consistency, while Average Variance Extracted (AVE) was used to establish convergent validity. The study's findings also suggest that the four strategic orientations have a positive and substantial impact on BG firm performance. Further, the moderating variable, the degree of internationalization, significantly influences the relationship between strategic orientations—namely, Market Orientation, Learning Orientation, and Technology Orientation—and the performance of Born Global (BG) firms. Overall, this research indicates that there is a need for implementing multiple strategic orientations for attaining competitive capability and establishing how these orientations are essential that firms need to consider for the best results. The research fills the existing knowledge deficit on the subject of how SO influences BG firms operating in the developing economy and offers some recommendations for managers and policymakers such as encouraging innovation to embrace change, understanding the market, and learning from the past and present by embracing technology to improve firm performance. Suggested research avenues include integrating larger samples and focusing on cross-sectional and longitudinal research designs, as well as comparing the effects of strategic orientations across different regions to enhance the understanding of the strategic orientations’ influence on BG firm performance.