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Strategic orientation, strategic renewal, and the international performance of born global firms

Author

Listed:
  • Farhad Uddin Ahmed

    (Brunel University London)

  • Mujahid Mohiuddin Babu

    (Coventry University)

  • Md Nafizur Rahman

    (Bangladesh University of Professionals (BUP))

  • Mohammad Jasim Uddin

    (Christ Church Business School, Canterbury Christ Church University)

  • Bidit Lal Dey

    (Brunel University London)

Abstract

The international business environment is both dynamic and turbulent. Accordingly, a new venture’s strategic orientation (SO) and ability to undertake strategic renewal (SR) are of great importance to its survival, growth and international performance. Building on the dynamic capability perspective, we explore how SR capability mediates the relationship between SO and the performance of mature born global firms (BGFs). In particular, we examine the direct and indirect interplay between the SO of BGFs and their performance outcomes. We use a sample of 195 export-oriented BGFs, derived from the Bangladeshi apparel industry. We use a hierarchical regression analysis technique to test the direct effects. The mediation effect is examined using three statistical tests – Baron and Kenney’s (1986) causal steps approach, the Sobel test, and the Hayes indirect effect with bootstrapping method – to ensure the validity and reliability of our findings. The results reveal a positive association between SO and the performance of BGFs, and that this relationship is mediated by the firms’ SR capability. We contribute to a greater understanding of the drivers of mature BGFs’ international performance by demonstrating a direct link between their SO and SR capability, which in turn affects their performance outcomes.

Suggested Citation

  • Farhad Uddin Ahmed & Mujahid Mohiuddin Babu & Md Nafizur Rahman & Mohammad Jasim Uddin & Bidit Lal Dey, 2025. "Strategic orientation, strategic renewal, and the international performance of born global firms," Asia Pacific Journal of Management, Springer, vol. 42(2), pages 993-1024, June.
    • Handle: RePEc:kap:asiapa:v:42:y:2025:i:2:d:10.1007_s10490-023-09903-7
    DOI: 10.1007/s10490-023-09903-7
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