Market orientation, learning orientation and business performance

Abstract

Purpose– The purpose of this paper is to examine the relationship between market orientation, learning orientation and innovation; and second, assesses the role of innovation, market orientation and learning orientation on firms’ business performance using a developing country (i.e. the Ghanaian banking domain) as a study context.Design/methodology/approach– Following a nation-wide survey among senior managers of 28 banks in Ghana, five research propositions were tested using multiple linear regression analysis.Findings– Results demonstrate that market orientation has significant association with innovation while learning orientation has significant impact on innovation. Moreover, innovation mediates the relationship between market orientation and business performance.Research limitations/implications– This study adopt the cross-sectional research design and as such acknowledge the same limitations as other cross-sectional studies.Practical implications– The research will help bank executives especially in Ghana and other developing countries to appreciate these marketing variables.Social implications– Banks innovation efforts, concurrently with the development of market orientation culture and improvement in organizational learning processes must benefit bank customers and stakeholders as a whole.Originality/value– The research will help banks in Ghana and other developing countries to appreciate that their innovation efforts should concurrently be in sync with the development of market orientation culture and improvement in organizational learning processes.