Abstract
Purpose The purpose of the research was to examine the effect of strategic orientation on organizational innovativeness of small and medium enterprises (SMEs). Moreover, in order to highlight the constructive role of strategic orientation, the study also observes the intervening role of strategic alignment and moderating role of strategic flexibility. Design/methodology/approach Data were collected from 209 owner/managers of SMEs through self-administered questionnaires. Descriptive statistics, correlation and hierarchical regression were used for testing the study hypotheses. Findings Results revealed that strategic orientation is positively related to SMEs innovativeness. Strategic alignment mediates between the strategic orientation and innovativeness link. Furthermore, the findings also established that the association between strategic orientation and strategic alignment is stronger when SMEs are strategically flexible. Originality/value Organizational innovativeness is of vital importance for SMEs strength, especially in the context of developing economies. Although researchers have acknowledged several antecedents of SMEs innovativeness, however, it is still unclear how strategic orientation influences organizational innovativeness. Moreover, the study focuses on another important element of strategic alignment through the integration of goals and strategies to achieve innovativeness.