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Relationships among market orientation, learning orientation, organizational innovation and organizational performance: An empirical study in the Pearl River Delta region of China

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Abstract

The purpose of this paper is to examine the relationships among market orientation, learning orientation, organizational innovation and organizational performance through a structural equation modeling approach. This study uses a sample of 143 companies in the Pearl River Delta region of China. Results show that (1) market orientation has no positive direct impact on organizational performance; (2) market orientation has a direct impact on learning orientation; (3) learning orientation has a direct impact on administrative and technical innovation; (4) market orientation has a direct impact on organizational innovation by learning orientation; (5) administrative innovation has a positive direct impact on organizational performance while technical innovation does not impact on organizational performance directly; (6) technical innovation has a positive impact on administrative innovation; (7) learning orientation has an indirect impact on organizational performance through influencing organizational innovation; (8) market orientation has impact on learning orientation, which has an impact on organizational innovation, which in turn has an impact on organizational performance. Managerial implications are discussed, along with suggestions for further research.

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Author information

Correspondence to Hongming Xie.

Additional information

Translated from Guanli Shijie 管理世界 (Management World), 2006, (2): 80–94, 143

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Keywords

  • market orientation
  • learning orientation
  • administrative innovation
  • technical innovation
  • organizational performance