The role of resource orientation, technology innovation, and strategic flexibility in driving firm performance

Purpose The aim of this study is to explore the impact of resource orientation (RO), and technology innovation (TI) as mediating factors, along with strategic flexibility (SF) as a moderating factor, on manufacturing firm performance in the Kingdom of Saudi Arabia (KSA). Design/methodology/approach The research utilizes a sample of 344 manufacturing firms based in the KSA and employs Smart PLS 4 for data analysis. Findings The results reveal a significant positive relationship between RO, TI, SF, and manufacturing firms’ performance. This study contributes to understanding how RO as resource, TI as a mediating variable, and SF as a boundary condition influence firm performance. Practical implications This study points out practical implications for managers in terms of optimizing the use of their resources, and encouraging innovation. These orientations can, therefore, improve firm performance. Additionally, strategic flexibility allows firms to change in correspondence to changing environments and maintain their advantages. This integrated approach provides a comprehensive framework for improving manufacturing firm performance through effective resource management, and technological advancements. Originality/value This study lies in its investigation of how RO and TI act as mediating factors, with SF as a moderating factor, on firm performance. This therefore presents a new framework that emphasizes the critical role of resource strategic management, and innovation in improving firm performance. Such an approach presents valuable insights and practical guidance for manufacturing firms that wish to maintain competitive performance and adjust to market dynamics.