Impact of Entrepreneurial Orientation on Firm Performance through Organizational Learning: The Moderating Role of Environmental Turbulence

Abstract

The given work is centered on the effect of entrepreneurial orientation on the firm performance mediated by organizational learning while the relationship of organizational learning and firm performance moderated by environmental turbulence. It enhances the literature by differentiating performances of IT firms and by describing how the five dimensions of EO impact the firm performances through organizational learning. This study observed the relationship between entrepreneurial orientation and firm performance through organizational learning and moderated by environmental turbulence. To achieve this aim, deductive approach was adopted. The sample size of the study was 250 respondents and data were collected from software houses of Pakistan. Data were collected through questionnaires. The proposed hypotheses analyzed by doing the SEM in Smart-PLS. The results demonstrate the mediating impact of organizational learning between the relationship of entrepreneurial orientation and firm performance. It was accepted and the reasons being that exploration of new ideas will help the employee to more learning that enhances their performance to achieve the project goals and objectives. The results also demonstrate the moderating impact of environmental turbulence between the relationship of organizational learning and firm performance. The results indicate that the five dimensions of EO, organizational learning, environmental turbulence, and their influence on firm performance. Managers can use these results to monitor, control, and influence the performance of projects and firm performance. The study is unique in its scope and implications as the focus is upon empirical investigation of the entrepreneurial orientation and organizational learning in the context of Asia focusing Pakistan. The originality of this study is that it undoes how the five dimensions of EO impact the firm performance. Second, it shows the moderated role of environmental turbulence between OL and firm performance. This study fills a gap in the literature by describing the organizational learning mediating the relationship of EO and firm performance and adds the argument on the results relating the relationship between EO and firm performance. The given work is focused on the impact of entrepreneurial orientation on the firm performance through organizational learning while using environmental turbulence as a moderator. A deductive approach was adopted in this study. The sample size of the study was 250 respondents and data were collected through questionnaires from software houses of Pakistan. The anticipated hypotheses analyzed by doing the SEM in Smart-PLS. All hypotheses were accepted and managers can use these results to monitor, control, and influence the performance of projects and their firm to accomplish the project objectives and intentions. The study is exclusive in its scope and implications as the emphasis is upon experimental research of the EO and OL in the context of Asia especially Pakistan. The uniqueness of this study is that it undoes how the five dimensions of EO affect firm performance through organizational learning in the presence of environmental turbulence.