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Entrepreneurial orientation and the mediating role of organisational learning amongst Indian S-SMEs
Journal of Small Business and Enterprise Development, Volume: 26, Issue: 5, Pages: 641 - 660
Swansea University Author: Paul Jones
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Purpose: This study examines organisational learning as a mediator among Small-Scale Manufacturing Enterprises (S-SMEs) which comprise the majority of economic activity in an emergent/developing economy. This study offers further understanding regarding the mediating role of organisational learning...
|Published in:||Journal of Small Business and Enterprise Development|
Emerald Publishing Ltd
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Purpose: This study examines organisational learning as a mediator among Small-Scale Manufacturing Enterprises (S-SMEs) which comprise the majority of economic activity in an emergent/developing economy. This study offers further understanding regarding the mediating role of organisational learning in developing world economies, due to its potential regional influence.Design/methodology/approach: A cross-sectional survey of Indian S-SMEs was undertaken from the District Industrial Center. The study employed a systematic sampling technique to contact owner/managers. Overall, 204 S-SMEs owners/managers participated in the study and 192 usable survey instruments were received.Findings: The study offers novel insights to the following questions. First, the factors that prompt entrepreneurial orientation to achieve superior business performance, i.e. the antecedents of entrepreneurial orientation? The results reveal competitor orientation is an antecedent of entrepreneurial orientation that leads to an S-SME’s business performance. Second, the outcomes of entrepreneurial orientation, i.e. the consequences of entrepreneurial orientation? The study reveals organisational learning and business performance are the corollary of entrepreneurial orientation. Third, the examination of whether organisational learning mediates the relationship between entrepreneurial orientation and business performance? The findings found the effects of entrepreneurial orientation on business performance are, in part, mediated by organisational learning.Research limitations: The present study is not devoid of limitations which need to be addressed in future studies. First, the present study has not included other strategic orientations, like technology orientation, production orientation and selling orientation which also play a crucial role in business performance. Second, other constructs may have significant relationship with market and entrepreneurial orientation which has been ignored by the present study. Third, the study is industry-sector specific and has not considered alternative sectors which also may play a potential role.Originality/value: This study enhances the existing S-SME literature by identifying factors contributing to entrepreneurial orientation and its repercussions on business performance. For S-SMEs.it adds credence to the role played by organisational learning in mediating the link between entrepreneurial orientation and business performance which potentially encourages owner/managers to dedicate increased time and resources toward creating and maintaining a conducive learning environment. The results support entrepreneurs in acknowledging the importance of competitor orientation during the emergence and development of entrepreneurial orientation, specifically in emerging economy contexts.
India, Organizational learning; SME