Abstract
Strategic orientations like Market orientation (MO) and Learning orientation (LO) play critical role in improving the performance of both large and small scale businesses. This paper investigate the relationship between LO and organizational performance with MO as moderator. The current study reports the findings of two hundred and seven owners or managers of Small and Medium Sized Enterprises (SMEs) in Pakistan. The findings of the study indicate a positive relationship between LO and organizational performance. Mo was found to have moderated the direct relationship between LO and organizational performance. This study is among the few attempts made to systematically examine the interplay among MO, LO and organizational performance in SMEs operating in Pakistan.
Highlights
Enhancing the productivity and competitiveness of the organizations has been an issue for both small and large organizations around the globe
The results demonstrate that adoption and implementation of high level of Market orientation (MO) practices in organizations strengthen the learning orientation (LO)-OP relationship
Objective performance measures such as financial data would be valuable to be employed and the results should be compared with the current study for more insights on the subject matter
Summary
Enhancing the productivity and competitiveness of the organizations has been an issue for both small and large organizations around the globe In this context, organizations needs to deliver products with superior value in order to meet the changing needs and expectations of the customers (Beneke, Blampied, Dewar, Soriano, & Deacon, 2016). Prior studies focusing on strategic orientation have suggested that the adoption and implementation of two strategic orientations namely Market orientation (MO) and learning orientation (LO) help both small and large organizations to enhance their core competitiveness, satisfy the current and latent needs of the customers and achieve improved organizational performance (Choi, 2014; Lin, Peng, & Kao, 2008; Mokoena & Dhurup, 2016). Review of the extant literature in the subject area has highlighted that the complimentary effects of both MO and LO enable the organizations to respond effectively to changing market demands, gain competitive advantage and enhance the organizational performance (Slater & Narver, 1995)
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