Effects of market orientation and learning orientation on organisational performance

Abstract

The current literature on market and learning orientation has been characterised by comparing the positive impact that these variables have on organisational performance. However, it has been observed that these relationships could be nonlinear and, they might be affected by another type of condition, mainly related to changes in the environment. The present research examines the impact of market and learning orientations on organisational performance by analysing a series of quadratic effects. Additionally, it analyses the possible moderating effects of environmental complexity on these relationships. A database of SME Colombian is used, such that the nonlinear relationships between these orientations and performance are proved, as well as the conditional effects of the environmental complexity on these nonlinear relationships. According to the results, market and learning orientation have decreasingly positive effects on organisational performance, and when environmental complexity increase, the positive effect of market orientation and learning on organisational performance decreases.