This study addresses the connections between Halal Business Model Innovation (HBMI), Market Orientation (MO), Entrepreneurial Orientation (EO), and Business Performance (BP) in Indonesian halal-certified food SMEs. Data were obtained from 173 SMEs through purposive sampling and analyzed within a quantitative cross-sectional framework, and Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed to conduct the analysis. The results reveal that EO significantly influences both MO and HBMI, while MO demonstrates a strong direct effect on BP. HBMI emerges as a notable direct predictor of Business Performance, underscoring its role in improving firm outcomes. HBMI does not serve as a primary mediator between strategic orientations and performance, whereas MO fully mediates the relationship between EO and BP. These findings imply that although HBMI directly enhances performance, its effectiveness as a transmission mechanism depends on further enabling factors. The study contributes to the body of literature on halal business strategies and provides actionable insights for SME managers and policymakers to reinforce orientation and innovation for greater competitiveness. Future comparative research across diverse national halal market contexts could employ these findings to validate and extend the results.

Keywords:

Entrepreneurial Orientation, Market Orientation, Halal Business Model Innovation, Business Performance, Food SMEs

@article{oscm-2026-805,
  title={Strategic Orientation and SMEs Performance: The Mediating Role of Halal Business Model Innovation},
  year={2026},
  author={Syamsuddin Syamsuddin and Suryadi Hadi and Femilia Zahra and Kadek Agus Dwiwijaya},
  journal={Operations and Supply Chain Management: An International Journal},
  volume={19},
  number={3},
  pages={506--520},
  doi={10.31387/oscm0660535}
}

Syamsuddin Syamsuddin, Suryadi Hadi, Femilia Zahra, Kadek Agus Dwiwijaya (2026). Strategic Orientation and SMEs Performance: The Mediating Role of Halal Business Model Innovation. Operations and Supply Chain Management: An International Journal, 19(3), 506-520. https://doi.org/10.31387/oscm0660535