Effect of Organizational Learning, Transformational Leadership, and Market Orientation on Firm Performance

Abstract

The purpose of this study is to examine the effects of organizational learning, market orientation, and transformational leadership on the organizational innovation and firm’s performance amongst the firms performing in Turkey. Using LISREL, structural equation-model, the data gathered from 330 employees were used to identify the variables that significantly affect the firm’s performance. The results indicated that 32% of firm’s performance is explained by the organizational innovation and market orientation, and organizational innovation has the strongest effect. However, organizational learning has no substantial effect on firm’s performance, and transformational leadership is also found to have an insignificant impact on the organizational innovation.