Congruence of Market Orientation and Organizational Learning: Performance Perspective

The purpose of this study is to investigate the relationship between market orientation, organizational learning and organizational performance. The study follows quantitative research strategy and cross-sectional survey design to collect data from manufacturing firms operating in Pakistan. Regression analysis and structural equation modeling techniques are used to analyze data. Results indicate that both market orientation and organizational learning significantly affect organizational performance. Additionally, customer orientation and inter-functional coordination are also positively related with all dimensions of organizational learning. Competitor orientation is significantly related with only knowledge interpretation dimension of organizational learning. This research explains how customer knowledge and competitor knowledge is instrumental towards an organization’s learning behavior. This research is valuable to practitioners as they can learn how customer knowledge can provide them with multiple opportunities to create superior value. Similarly, competitor related knowledge is instrumental in drawing a competitive strategy to win customers. This paper is novel as it confirms market orientation as an antecedent of organizational learning. Furthermore, the paper explores significant implications of components of market orientation for organizational learning subprocesses.