The impact of market orientation and learning orientation on organisational performance

Abstract

Purpose This study aims to consider the impact of market orientation and learning orientation on organisational performance in the context of small- and medium-sized enterprises (SMEs) in Cape Town, South Africa. SMEs play a vital role in developing countries’ economies given their large contribution towards employment and the economic output (gross domestic product). However, many SMEs struggle to implement practices that are used to successful ends by their corporate counterparts. In view of this, this study sought to probe this issue within an emerging market context. Design/methodology/approach A survey of 162 enterprises, using partial least squares -structural equation modelling path modelling, was used to link the constructs of market orientation, learning orientation and organisational performance. Findings The results revealed a significant relationship between market orientation and organisational performance. However, in contrast to other studies in the developed world, this study found that learning orientation has neither a significant effect on organisational performance nor a moderating effect on the relationship between market orientation and organisational performance of SMEs. Practical implications The implications of these findings suggests that, inter alia, the organisation’s implicit marketing plans should be made explicit and shared with employees throughout the enterprise. Moreover, owners and senior managers should embrace a positive marketing philosophy and optimal organisational structure, as well as be willing to assume risks to achieve organisational objectives. However, further research is advocated to understand the nuances distinguishing developing and developed countries. Originality/value This is one of the first studies to consider the interrelationships between market orientation, learning orientation and organisational performance in the context of SMEs within an emerging market setting. To the best of the authors’ knowledge, this is pioneering research in the South African domain.

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

“…In contrast to other studies in the developed countries, Beneke et al. () found that LO had neither a significant effect on organizational performance nor a moderating effect on the relationship between market orientation and organizational performance of small‐ to medium‐sized enterprises in South Africa. Besides these divergent results about the moderation effect of LO, another issue that deserves attention is its interaction with strategic HR practices, since both LO and HPWS have influence on individual behavior from the HR perspective (Gong, Huang and Farh ; Jiang et al.…”

“…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 ). 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.…”

“…Some studies have also investigated the moderating effect of LO; however, most of these considered only its interaction with market orientation on other organizational outcomes, with divergent results (Baker and Sinkula ; Beneke et al. ; Fang et al. ; Kakapour et al.…”

“…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 ). Some researchers have examined the relationship between LO and organizational innovation and innovativeness.…”

The Relationship between Learning Orientation and the Performance of Small and Medium Enterprises in South Africa

“…Bakar et al (2016) argue that understanding the environment a firm operates in through the learning orientation enables the business to exploit opportunities as they arise while at the same time working on minimising the threats beforehand. Beneke et al (2016) remark that adopting learning orientation allows a firm to meet and surpass customer expectations. On that note, Haryanto, Haryono and Sawitri (2017) assert that an organisation which embrace learning orientation has a high probability of becoming a market leader.Given the fact that customers in the 21 1 st century are becoming so knowledgeable about the products they buy and make comparisons before they buy, it is important for SMEs to utilise learning orientation to constantly meet their customer needs and remain profitable.…”