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The impact of market orientation and learning orientation on organisational performance: a study of small to medium sized enterprises in Cape Town, South Africa

The impact of market orientation and learning orientation on organisational performance: a study... PurposeThis study considers the impact of market orientation and learning orientation on organisational performance in the context of 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 (GDP). 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/approachA survey of 162 enterprises, using PLS-SEM path modelling was used to link the constructs of market orientation, learning orientation and organisational performance.FindingsThe 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 implicationsThe 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 in order to achieve organisational objectives. However, further research is advocated to understand the nuances distinguising developing and developed countries.Originality/valueThis 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Research in Marketing and Entrepreneurship Emerald Publishing

The impact of market orientation and learning orientation on organisational performance: a study of small to medium sized enterprises in Cape Town, South Africa

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References (95)

Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1471-5201
DOI
10.1108/JRME-06-2015-0033
Publisher site
See Article on Publisher Site

Abstract

PurposeThis study considers the impact of market orientation and learning orientation on organisational performance in the context of 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 (GDP). 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/approachA survey of 162 enterprises, using PLS-SEM path modelling was used to link the constructs of market orientation, learning orientation and organisational performance.FindingsThe 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 implicationsThe 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 in order to achieve organisational objectives. However, further research is advocated to understand the nuances distinguising developing and developed countries.Originality/valueThis 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.

Journal

Journal of Research in Marketing and EntrepreneurshipEmerald Publishing

Published: Jul 11, 2016

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