The Impact of Market Orientation and Learning Orientation on Firm Performance: A Case of Born-Global Firms in Sri Lanka

Abstract

Despite many previous research on market orientation, learning orientation and international performance of born global firms, some questions are still unanswered. One such appealing question is do market and learning orientations leads to superior international performance of born global firms in more dynamic and complex global environment. This study, therefore, investigates the synergistic impact of Market Orientations (MO), and Learning Orientation (LO) on international performance (IP) of born global firms and seeks to enrich the existing literature with empirical evidences from a growing country context, Sri Lanka, yet an inclusive area of research. Data were analyzed using 225 ICT export entrepreneurs and data were collected using a structured questionnaire. The hypotheses were tested using covariance-based structural equation modelling. The findings revealed that MO and LO significantly influence international performance of born global firms. The study also reports that LO mediates the MO – Performance relationship, confirming the synergistic impact. Finally, to receive the maximum benefit of synergistic effect of market and learning orientations, this paper suggests to managers of born global firms to come up with innovative ways and ideas to respond to changes and to formulate strategies based on implicit learning, creative learning, learning by action and learning by trial and error.