The synergistic effect of market orientation and learning orientation on organizational performance

Although a large body of research theoretically asserts a positive relationship between market orientation and organizational performance, fewer empirical studies demonstrate it using multiple and varied organizational performance measures. Additionally, a series of recent studies have theoretically proposed, but not empirically demonstrated, that a firm’s learning orientation is likely to indirectly affect organizational performance by improving the quality of its market-oriented behaviors and directly influence organizational performance by facilitating the type of generative learning that leads to innovations in products, procedures, and systems. This empirical study supports all of these specific contentions and the more global notion that higher order learning processes may be critical in creating a sustainable competitive advantage in the firm. William E. Baker is an assistant professor of marketing in the School of Business Administration at the University of Vermont. His research interests include both individual and organizational learning. He has published in the areas of consumer decision making, advertising effectiveness, and market-based organizational learning. James M. Sinkula is an associate professor of marketing in the School of Business Administration at the University of Vermont and the director of its MBA Program. His research interests lie primarily in the areas of organizational information use and market-based organizational learning. He has publications in theJournal of the Academy of Marketing Science, Journal of Advertising Research, Journal of Business Research, Journal of Marketing, and others.