Market orientation, learning orientation, and the performance of nonprofit organisations (NPOs)

Abstract

Purpose -Nonprofit organisations (NPOs) are challenged with continuous change, which provides the impetus for adopting organisational change models. The purpose of this paper is to examine the impact of the adoption of market and learning orientations on NPO performance. Design/methodology/approach -The authors draw on extant management literature to theorise the interrelationship between market orientation, learning orientation, and economic and non-economic NPO performance. Using a survey design, the authors draw a convenience sample of 118 NPOs in Ghana to test their theoretisation. Findings -Evidence is found that although the relationship between market orientation and NPO performance is significant (on both economic and non-economic indicators), what best accounts for enhanced performance is learning orientation. Additionally, non-economic performance mediates the relationship between learning orientation and economic performance. Research limitations/implications -Replicating the study with larger samples, using objective performance data, and applying more rigorous approach to data analysis, among other things, could significantly improve the generalisability of the results. Practical implications -NPO managers are reminded that non-economic performance (e.g. service or program effectiveness) represents part of the underlying mechanism through which the financial assurances of market and learning orientations can be exploited. Originality/value -The paper builds on the market orientation literature by theorising and demonstrating empirically a route through which market orientation is related to the firm's financial performance.

The direct and moderating effect of learning orientation on individual performance in the banking industry in China: contextualization of high‐performance work systems

“…The extant LO literature has revealed a strong positive relationship between LO and organizational‐level outcomes. Some of the studies have focused on the direct effect of LO on organizational performance and found a positive relationship between them (Abdulai Mahmoud and Yusif ; Baker and Sinkula ; Beneke et al. ; Calantone, Cavusgil and Zhao ; Mavondo, Chimhanzi and Stewart ).…”

“…; Calantone, Cavusgil and Zhao ; Mavondo, Chimhanzi and Stewart ). For example, Abdulai Mahmoud and Yusif () investigated the effect of LO in non‐profit organizations and found that LO was positively related to economic and non‐economic organizational performance – specifically, non‐economic performance was the mediator in the relationship between LO and economic performance. Another important and popular organizational outcome that has been examined in LO research was firm innovation.…”

“…As developed from organizational‐level perspective, the construct of LO has been studied mostly at the organizational level (e.g. Abdulai Mahmoud and Yusif ; Baker and Sinkula ; Hult, Hurley and Knight ; Kakapour et al. ; Sheng and Chien ).…”

Learning Orientation, Market Orientation and Organizational Performance: The Mediating Effect of Absorptive Capacity

“…In other words, MO involves the use of superior organizational skills in understanding and satisfying customers. It facilitates an organization's ability to anticipate, react to, and capitalise on environmental changes, thus, leading to superior performance (Mahmoud and Yusif 2012). ISSN 2162-4860 2017 Narver and Slater (1990) state that MO has three components.…”

The Relationship between Learning Orientation and Dynamic Capability based on Environmental Education

“…Some researchers also study the effects of learning orientation on organizational performance or new firms' competitive advantage through the mediation effects of knowledge innovation, team trust, product innovation, and knowledge integration (Baba, 2015;Haryanto, Haryono, & Sawitri, 2017;Huang & Li, 2017;Mahmoud & Yusif, 2012;Sikora, Nybakk, & Panwar, 2016;Wu, Tsai, & Tai, 2016).…”