Mediation of learning orientation on market orientation and business performance: evidence from Brazilian Small and Medium Enterprises (SMEs)

Abstract

PurposeThe aim of this study is to investigate the mediating effect of learning orientation on the market orientation and business performance of industrial Small and Medium Enterprises (SMEs) in the metal-mechanic and wine sectors in southern Brazil, an emerging economy country.Design/methodology/approachSurvey data were collected from 309 Brazilian managers of SMEs in the metal-mechanic and wine sectors. The study analyzed overall model fit and causal relationships by confirmatory factor analysis and structural equation modeling.FindingsThe survey results show that there is a positive and significant relationship between the variables market orientation, learning orientation and business performance in the investigated sectors. Learning orientation mediates the relationship between market orientation and business performance.Practical implicationsThis article provides insight to guide industrial managers of Brazilian SMEs in the metal-mechanic and wine sectors in a prosperous region with a thriving economy. The mediating effect of learning orientation can help managers in their commitment to learning, market vision and open-mindedness in teams that work with multiple orientations.Originality/valueFew studies focus on analyzing the mediating effect of learning orientation in industrial SMEs in the metal-mechanic and wine sectors. This article differs from others due to the relationships between the constructs, LO mediation over MO and BP, relevance of the investigated sectors for the region and multiple guidelines for managers of the investigated SMEs. Previous studies are scarce on the indirect effect of LO on MO and BP in developing countries.