Organizational learning and market performance: The interactive effect of market orientation

Abstract

This study examines the interactive effect of market orientation in the relationship between organizational learning and market performance. Market performance, as the dependent variable, is expected to create wealth for organizations and shareholders, however, so far, little empirical attention has been given to market performance as one of the decisive end outcome of organizational learning activities. Using a cross-sectional survey design, the empirical findings indicated a positive relationship between the study variables. A continuum among the organizational learning styles (adaptive learning, generative learning and triple-loop learning) was established with market performance. Market performance is greatly improved when organizational learning interacts with market orientation and the discussion focuses on managerial support, an appropriate learning infrastructure and market-based organizational culture as the foundations for the relationships in the organizations.