Proceedings of Annual Switzerland Business Research Conference
12 - 13 October 2015, Novotel Geneva Centre, Geneva, Switzerland
ISBN: 978-1-922069-86-3
QUADRATIC AND MODERATING EFFECTS OF MARKET
ORIENTATION AND LEARNING ORIENTATION AND THE
INFLUENCE OF ENVIRONMENTAL FORCES ON
ORGANIZATIONAL PERFORMANCE
Miss DIANA MARCELA ESCANDÓN BARBOSA
Business administration department, Pontificia Universidad Javeriana Cali
dmescandon@javerianacali.edu.co
052 3218130
Miss ANDREA HURTADO AYALA
Business administration department, Universidad del Valle
andrea.hurtado.ayala@correounivalle.edu.co
052 3218130
Mr. JAIRO ANTONIO SALAS PARAMO
Business administration department, Pontificia Universidad Javeriana Cali
jasalas@javerianacali.edu.co
052 3218902
Proceedings of Annual Switzerland Business Research Conference
12 - 13 October 2015, Novotel Geneva Centre, Geneva, Switzerland
ISBN: 978-1-922069-86-3
Purpose – This research examines the impact of market orientation and learning orientation
on organizational performance by analyzing a series of quadratic effects. Additionally, it
analyzes the possible moderating effects of environmental attributes, such as complexity,
munificence and dynamism. In the other side, it has been observed that these relationships
could be non-linear that they might be affected by another type of condition, mainly related
to changes in the environment.
Design/methodology/approach – The data used for this study were obtained from a survey
conducted in person among Colombian companies, which were selected according to their
size and location in the main cities of the country. The proposed model was tested using
hierarchical path analysis such that the non-linear relationships between these orientations
and organizational performance were proving, as well as the conditional effects of the
environmental attributes on these non-linear relationships.
Findings – This study has allowed us to prove that it is not necessarily high levels of
market or learning orientation that lead to best organizational performance. Additionally,
when environmental complexity, environmental munificence and environmental dynamism
increase, the positive effect of learning orientation on organizational performance
decreases. Finally, it is possible to identify that the function of managers facing turbulent
environments should be focused on the efficient assignment of resources to meet the
necessary organizational routines in response to these environmental conditions.
Proceedings of Annual Switzerland Business Research Conference
12 - 13 October 2015, Novotel Geneva Centre, Geneva, Switzerland
ISBN: 978-1-922069-86-3
Originality/value – Few studies have taken the influence of different variables of
environment such as environmental complexity, environmental munificence and
environmental dynamism in the relationship between the market and learning orientation
and its impact on organizational performance. Furthermore, this article is valuable for
managers because increasing the knowledge of market behavior will allow channeling their
efforts into the promotion of information acquisition, knowledge generation and product
change activities, which will favorably impact the client.