From Entrepreneurial Orientation and Learning Orientation to Business Performance: Analysing the Mediating Role of Organizational Learning and the Moderating Effects of Organizational Size
Published date | 01 April 2014 |
Author | Antonio Leal,Juan C. Real,José L. Roldán |
Date | 01 April 2014 |
DOI | http://doi.org/10.1111/j.1467-8551.2012.00848.x |
From Entrepreneurial Orientation and
Learning Orientation to Business
Performance: Analysing the Mediating
Role of Organizational Learning and the
Moderating Effects of Organizational Size
Juan C. Real, José L. Roldán1and Antonio Leal1
Department of Business Management and Marketing, Pablo de Olavide University, Ctra. de Utrera, Km. 1,
41013 Seville, Spain, and 1Department of Business Administration and Marketing, University of Seville,
Avda. Ramón y Cajal, 1, 41018 Seville, Spain
Corresponding author email: jcreafer@upo.es
Following the organizational learning theory and the knowledge-based view approach,
this contribution aims to study the influence of entrepreneurial orientation and learning
orientation on organizational learning, considering the latter as a mediating variable in
the relationships between both antecedent cultural values and business performance. We
also analyse the moderating role of organizational size on these previous relationships.
The hypotheses proposed in our research model are tested on a sample of 140 Spanish
industrial companies, applying variance-based structural equation modelling: partial
least squares. In order to assess the moderating effects of organizational size, we adopt
a multi-group approach using two subsamples with large firms and small and medium-
sized enterprises (SMEs). Our findings indicate that organizational learning partially
mediates the relationship between entrepreneurial orientation and performance and fully
mediates the link between learning orientation and performance. Likewise, the results
reveal that the relationship established between entrepreneurial orientation and organi-
zational learning is more intense for the group of large firms than for the group of SMEs.
Moreover, the influence of learning orientation on organizational learning is greater in
SMEs than in large firms.
Introduction
The implications of the knowledge-based view in
the learning and knowledge creation in organiza-
tions have not been extensively addressed in the
existing literature. Argote (2011) argues that
knowledge creation is a research area that would
especially benefit from more theorizing and
empirical research. In this respect, a particular
investigation field is linked to managerial atti-
tudes and cultural values that would play an ante-
cedent role. This would be the case of the
entrepreneurial orientation and learning orienta-
tion. Entrepreneurial orientation is associated
with methods, practices and decision-making
styles that managers use to act entrepreneurially
(Covin and Slevin, 1989). This leads companies to
develop product-market innovations, take risks
and behave proactively (Miller, 1983). Learning
orientation is conceptualized as a basic attitude
towards learning, i.e. the organizational and
managerial characteristics that facilitate the
This research was supported by the Junta de Andalucía
(Consejería de Economía, Innovación y Ciencia), Spain
(Proyecto de investigación de excelencia SEJ-6081).
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British Journal of Management, Vol. 25, 186–208 (2014)
DOI: 10.1111/j.1467-8551.2012.00848.x
© 2012 The Author(s)
British Journal of Management © 2012 British Academy of Management. Published by John Wiley & Sons Ltd,
9600 Garsington Road, Oxford OX4 2DQ, UK and 350 Main Street, Malden, MA, 02148, USA.
organizational learning process (Chiva and
Alegre, 2009).
Both cultural values are drivers of organiza-
tional learning, i.e. the process through which
organizations change or modify their mental
models, processes or knowledge, maintaining or
improving their performance (DiBella, Nevis and
Gould, 1996). On the one hand, the organization’s
entrepreneurial orientation encourages the firm’s
adoption of an innovating proactive behaviour
that will promote the organizational learning and
the knowing process (Dess et al., 2003). On the
other hand, the learning orientation will influence
the firm’s likelihood of creating and using knowl-
edge (Sinkula, Baker and Noordewier, 1997).
Organizational learning allows the combina-
tion of the firm’s existing resources and cap-
abilities, transforming them into distinctive
competences – a source of sustainable competitive
advantage (Lado, Boyd and Wright, 1992).
Therefore, organizational learning becomes a
fundamental strategic factor according to the
resource-based view approach and its extension,
the knowledge-based view approach. Both theo-
retical frameworks suggest that competitive
advantage stems from the firm’s capabilities and
skills. Consequently, organizational learning will
improve the company performance, reinforcing
its competitive advantage.
Moreover, the relationship between entrepre-
neurial orientation and business performance has
received substantial attention in the literature
(Covin and Slevin, 1986; Wiklund and Shepherd,
2003). Although entrepreneurial orientation is
usually considered to have a positive impact on
firm performance (Rauch et al., 2009), this rela-
tionship requires a wider analysis of the interme-
diate steps between entrepreneurial orientation
and firm performance. Similarly, other studies
have demonstrated the influence of learning ori-
entation on business performance (Baker and
Sinkula, 1999; Calantone, Cavusgil and Zhao,
2002; Vijande et al., 2005). Hult, Hurley and
Knight (2004) state that learning orientation
occurs especially at the level of corporate culture
and the relationship between learning orientation
and firm performance can be mediated by other
variables that would impact directly on business
results. In addition, the literature provides some
controversial results concerning the link between
organizational learning and business performance
(Pérez López, Montes Peón and Vázquez Ordás,
2005). Nonetheless, there are no previous studies
that test the joint impact of entrepreneurial orien-
tation and learning orientation on organizational
learning, the latter being considered as a mediat-
ing variable in the relationships between anteced-
ent cultural values and business performance.
In order to understand the conditions under
which an entrepreneurial orientation and learning
orientation enhance firm performance, we suggest
that it is necessary to take intermediate variables
into account, such as organizational learning. In
doing so, our first objective will be to test the role
of organizational learning as a mediator of the
relationship between entrepreneurial orientation
and learning orientation in business performance.
This paper also makes another contribution to
the literature: organizational size may exert a mod-
erating effect on the direct relationships previously
disclosed. The majority of organizational learning
studies have concentrated on large organizations
(Leonard-Barton, 1992). These are based on case
studies of organizations that are successful in their
learning. Notwithstanding, the empirical evidence
is limited (Easterby-Smith, 1997). This is particu-
larly so in the case of small companies (Sadler-
Smith, Spicer and Chaston, 2001). Organizational
learning research has neglected this organization
type for too long (Hendry, Arthur and Jones,
1995). Contrariwise, the literature also indicates
that organizational size could be a key impediment
to organizational learning (Marquardt and Rey-
nolds, 1994). Given that situation, as a second
objective we explore the role of organizational size
as a potential moderator variable.
To achieve the objectives proposed, the struc-
ture of the paper is as follows. First, there is a
description of the theoretical framework applied
in this research. This leads to a series of hypoth-
eses describing the research model. Next, we
present the sample selection, the questionnaire
design and the planning of the fieldwork. Then,
we report our findings and discuss their implica-
tions based on an analysis of data collected from
140 manufacturing firms. Finally, we state the
limitations and guidelines for future research, as
well as the conclusions of our study.
Theory and hypothesis
Organizational learning and knowledge creation
This paper defines organizational learning as a
dynamic process of knowledge creation generated
Entrepreneurial and Learning Orientation and Performance 187
© 2012 The Author(s)
British Journal of Management © 2012 British Academy of Management.
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