Modeling the Relationship Between Market Orientation, Learning Orientation, and Performance of Moroccan SMEs: A Structural Equation Approach

Abstract

In the field of entrepreneurship, Small and Medium Enterprises (SMEs) are highly regarded due to their substantial contributions to growth, development, and innovation. In Morocco, SMEs constitute nearly 97% of the country’s production sector, span various industries, generate 38% of national wealth74% of the workforce, as per the 2021 report from the Moroccan SME Observatory. However, in the face of international trade liberalization, these businesses face intense domestic market competition, impacting their competitiveness and performance. This study explores the significance of ‘market orientation’ and ‘organizational learning orientation’ as crucial managerial practices, enabling SMEs to gain competitive advantages, market differentiation, and higher performance. Utilizing the resource-based view and dynamic capabilities theory, the research investigates how learning orientation transforms market practices into improved organizational performance. The study distributed a questionnaire to 113 Moroccan SME managers and applied the Partial Least Squares Structural Equation Modeling (PLS-SEM) method to test hypotheses. The results indicate a positive impact of market orientation on Moroccan SME performance. Additionally, the study uncovers a partial mediating effect of organizational learning orientation in this relationship. These findings suggest that enhancing organizational learning orientation can amplify the benefits of market orientation for Moroccan SMEs, providing valuable insights for strategic decisions aimed at enhancing overall performance.