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.