Learning Orientation and Firm Performance: A Review of Literature

Abstract

Examining the relationship between learning orientation (LO) and business performance has received considerable attention in both strategic marketing and management literature. This study is aimed to examine the relationship of learning orientation and performance in the context of small and medium sized enterprises (SMEs). It suggests that a strong learning orientation results in high business performance. LO is a multidimensional construct operationalized in terms of open mindedness, shared vision and commitment to learning. Objective measures of performance should be used for accurate measurement of performance. Various strategic orientations like entrepreneurial orientation and market orientation, and environmental elements should be taken as mediating and moderating variables while studying the relationship of LO with performance.