Learning Orientation, Process Innovation, and Firm Performance in Manufacturing Industry

Abstract

Firms in manufacturing industry require a strong learning orientation to improve their process innovation capability. Learning orientation can help them to gain competitive advantage. Using data from 534 plants in manufacturing industry in Guangdong Province, China, this study investigated the relationships among learning orientation, process innovation, and firm performance through structural equation modeling. This study found that learning orientation has a direct and positive impact on process innovation, process innovation has a direct and positive impact on firm performance, and learning orientation doesn’t have a direct and significant impact on firm performance. We also found that process innovation is a full mediator of the relationship between learning orientation and firm performance.