Strategic orientation and firm performance: the role of digital technology

Purpose This study examines how different forms of strategic orientation – technology orientation (TO), entrepreneurial orientation (EO), and growth orientation (GO) affect the performance of small and medium-sized enterprises (SMEs). Whilst prior research has demonstrated positive links between strategic orientations and firm performance, less attention has been paid to the role of digital technology (DT) adoption in shaping these relationships. This study addresses this gap by analyzing the direct effects of strategic orientations and the moderating influence of DT adoption, with particular attention to food-sector SMEs in Vietnam. Design/methodology/approach This study uses a qualified sample of 460 SMEs, derived from the merging of two data sources from the 2024 surveys conducted by the Vietnam General Statistics Office. The study employs the Extended Regression Model (ERM) to assess DT’s moderating role. Findings The findings validate the substantial positive impacts of TO, EO, and GO on SME performance. Furthermore, digital transformation enhances the positive correlation between each orientation and performance, indicating that firms utilizing digital tools derive greater advantages from their strategic orientations. Originality/value This study enriches strategic orientation literature by providing empirical evidence of DT’s role as a moderator in the orientation-performance nexus. The findings also offer practical insights by showing DT as a strategic enabler that amplifies orientation-performance links, guiding managers and policymakers in fostering digital adoption for sustainable growth.