IMPACT OF STRATEGIC ORIENTATION ON FIRM PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES(SME) IN THE AMBAGAMUWA DIVISIONAL SECRETARIAT, NUWARA ELIYA

Abstract

The purpose of this study is to examine the impact of Strategic Orientation on the Firm Performance of SMEs in the Ambagamuwa Divisional Secretariat area, Nuwara Eliya. SMEs contribute to the generation of employment, generation of income, contribution to social activities, and reduction of poverty. SMEs have been recognized as an important strategic sector for promoting growth and social development in Sri Lanka. Organizational response or environmental changes according to the strategic orientation. Furthermore, organizations have to face the competitive market with globalization and technological change. So, there is a network that considers SMEs' strategies for firm performance. The study was conducted by collecting primary data through a structured questionnaire using the Five Point Likert Scale. For this study, 309 SME owner-managers were selected. And used the Stratified Random sampling method. Statistical Package for Social Sciences (SPSS) version 25 was used to analyze the data. Data analysis is done by using Reliability, descriptive statistics, Pearson's correlation coefficient, and regression analysis. In this study, Strategic Orientation are with the determinants of Aggressiveness, Analysis, Defensiveness, Futurity, Proactiveness, an0 Riskiness. The dependent variable of this study is Firm Performance. It has been measured by the perceived measures of Environmental, Financial, and Social Performance. This research study analyzes personal information and research information. As per the research findings the strategic orientation positively impacts on the firm performance in SMEs in the Ambagamuwa Divisional Secretariat area. As recommendation SME owners need to aware on analysis methods to minimizing the risk such as planning for the future situations. As same as SME owners' innovativeness should be enhance and innovative products need to appreciate and rewarded and through the exhibition those need to publish among the customers. According to the research study shows most of the SME owners in the Ambagamuwa Divisional Secretariat are not willing to doing the analysis. Since it is a characteristic of the entrepreneur analyzing the need to enhance by making understanding on benefits can gain as well as the examples in the programs. The results of this study are essential for the owners and managers of SMEs to improve the firm performance through strategic orientation. And also, the quality makers and the regulatory bodies.