Examining the Impact of Market-Strategic Orientations on Firm Profitability Through the Mediating Role of Social Efficiency and Commercial Efficiency – Case Study: Small and Medium Enterprises in Mashhad

Abstract

The objective of the present study is to investigate the impact of market-strategic orientations on firm profitability through the mediating role of social efficiency and commercial efficiency in small and medium enterprises (SMEs) in the city of Mashhad. This study is descriptive-analytical in nature and type. The statistical population of this research includes all managers of small and medium industrial enterprises in Mashhad, totaling 240 individuals. The sample size was determined to be 148 people using Cochran's formula, and the sampling method applied was simple random sampling. The data collection tool was a questionnaire. To analyze the data, the structural equation modeling (SEM) technique was employed. The findings of this study indicate that market-strategic orientations, including customer orientation, competitor orientation, and technology orientation, have a positive effect on firm profitability through the mediating role of social efficiency. Additionally, the results showed that market-strategic orientations, including customer orientation, competitor orientation, and technology orientation, have a significant effect on firm profitability through the mediating role of commercial efficiency. Moreover, the findings revealed that a coherent vision has a positive impact on social-commercial efficiency. On the other hand, the impact of commercial and social efficiency on profitability was found to be significant. One of the most important dimensions and characteristics of any scientific research is its innovation and novelty, and the most significant innovation of this research lies in its conceptual model and the relationships among its variables, which have not yet been studied in any domestic research. Based on the research findings, it is recommended that managers of small and medium industrial enterprises in Mashhad adopt a comprehensive and long-term strategy to enhance profitability based on market-oriented and strategic goals, thereby ensuring the long-term survival of the firm. This study was conducted exclusively in small and medium enterprises; therefore, caution must be exercised when generalizing the findings to other firms and manufacturing institutions.