Market‐based Organizational Learning and Market Performance Gains

Abstract

Building upon the market orientation‐performance thesis, many investigators are now concerned with broader organizational learning considerations and the antecedents that underlie the analytical properties of learning about competitors and markets. Described as a process of market‐based organizational learning, an empirical test of a model is provided which indicates that: when organizations exhibit more favourable learning values (three value‐based constructs), their market information processing behaviours and analytical capabilities improve (three knowledge‐based constructs), which thereby directly impacts upon market‐based outcomes (a market performance construct) that the organization is able to generate. This model is tested with a path‐analytic approach from data generated in the UK financial services industry. Discussion of these findings is made in the light of pertinent literature streams, and several implications for future research are provided.