The impact of competitive strategies on responsive market orientation, proactive market orientation, learning orientation and organizational performance

Abstract

Drawing on the strategy implementation approach and the resource-based view of the firm, this study examines the relationships among competitive strategies (differentiation and cost leadership), responsive market orientation (RMO), proactive market orientation (PMO), learning orientation (LO) and organizational performance. The study used questionnaire survey of senior managers of 264 manufacturing and service companies in Jordan. The study employed partial least squares to test the hypotheses. Moderate but significant relationships are evident in the links between cost leadership and LO, and RMO and organizational performance. Strong and significant relationships are exhibited in the links between differentiation and RMO; differentiation and PMO; differentiation and LO and between LO and organizational performance. The results show that differentiation strategy is more important than cost leadership strategy and that LO is the most important factor for better organizational performance.