Investigating the impact of strategic orientation on organizational performance with the mediating role of business model innovation

The aim of this study was to investigate the effect of strategic orientation on organizational performance through the mediating influence of business model innovation in small and medium-sized enterprises (SMEs) in Uzbekistan. The data were collected using a standardized questionnaire from 300 companies from different industries in 2024 (response rate: 78%) and tested according to the structural equation modeling (SEM) procedure. The findings revealed that strategic orientation has a strong and direct influence on organizational performance (β = 0.45, p < 0.01) and 63% of the variance in organizational performance is explained by the research variables. Additionally, business model innovation, as a partial mediator, mediates 32% of this effect (β = 0.32, p < 0.05). The results indicate the need to adopt dynamic strategies and business model innovation towards organizational competitiveness because of the economic landscape of Uzbekistan, where the share of SMEs is 56% of GDP (5.8% growth in 2023). This study provides evidence for policymakers and managers to build the entrepreneurial ecosystem.

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