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

Economic Annals-XXI: Volume 213, Issue (1-2), Pages: 83-88

Citation information
Ostonokulov, A., Shaymatova, N., Abdullayeva, N., Jabbarova, Ch., Azizova, Z., & Norquchqorov, A. (2025). Investigating the impact of strategic orientation on organizational performance with the mediating role of business model innovation. Economic Annals-XXI, 213(1-2), 83-88. doi: https://doi.org/10.21003/ea.V213-09

Azamat Ostonokulov
D.Sc. (Economics),
Department of Budget Accounting and Treasury,
Tashkent State University of Economics
49 Islom Karimov Str., Toshkent, 100066, Uzbekistan
a.ostonokulov@tsue.uz
ORCID ID: https://orcid.org/0000-0003-2792-3174

Nargiza Shaymatova
PhD (Economics),
Department of Accounting and Auditing,
Termez State University
43 Barkamol Avlod Str., Termiz, 190102, Uzbekistan
shnargiza@tersu.uz
ORCID ID: https://orcid.org/0009-0002-9709-3065

Nilufar Abdullayeva
PhD (Economics),
Department of Budget Accounting and Treasury,
Tashkent State University of Economics
49 Islom Karimov Str., Toshkent, 100066, Uzbekistan
n.abdullaeva@tsue.uz
ORCID ID: https://orcid.org/0000-0001-7456-7403

Charos Jabbarova
PhD (Economics),
Department of Budget Accounting and Treasury,
Tashkent State University of Economics
49 Islom Karimov Str., Toshkent, 100066, Uzbekistan
ch.jabborova@tsue.uz
ORCID ID: https://orcid.org/0009-0002-0283-7042

Zilola Azizova
PhD (Economics),
Department of Financial Accounting and Reporting,
Tashkent State University of Economics
49 Islom Karimov Str., Toshkent, 100066, Uzbekistan
zilolaazizova85@gmail.com
ORCID ID: https://orcid.org/0009-0000-6025-2275

Abdulaziz Norquchqorov
PhD (Economics),
Department of Budget Accounting and Treasury,
Tashkent State University of Economics
49 Islom Karimov Str., Toshkent, 100066, Uzbekistan
a.norquchqorov@tsue.uz
ORCID ID: https://orcid.org/0000-0002-8207-127X

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

Abstract. 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.

Keywords: SME; Strategy; Strategic Orientation; Organizational Performance; Business Model Innovation; Uzbekistan; Management

JEL Classifications: Е24; Е41; Е64; I18; J28; J31

Acknowledgements and Funding: The authors received no direct funding for this research.

Contribution: The authors contributed equally to this work.

Data Availability Statement: The dataset is available from the authors upon request.

DOI: https://doi.org/10.21003/ea.V213-09

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Received 25.09.2024
Received in revised form 19.10.2024
Accepted 23.10.2024
Available online 26.02.2025