Abstract/Summary

This study focused on the interrelationships between fonnalisation, the learning organisation, market orientation and business perfonnance, and on the possible moderating influence of the environmental variables turbulence and competitive intensity on the learning organisation/market orientation-business performance link. This study was done in the context of the larger Dutch export companies. A review of the literature enabled the development of four hypotheses (see below). Until now, there has been hardly any empirical evidence of the relationship of the learning organisation with market orientation, of the relationship between the learning organisation and business performance and of the possible moderating influences on this relationship. Furthermore, the relationship of market orientation with business performance is mainly studied in the USA, Japan and the UK, but not in the Netherlands. A review of the literature enabled the development of the following four hypotheses: H1: The greater the level of fonnalisation, the lower the level of learning organisation and the level of market orientation. H2: The greater the level of learning organisation, the greater the level of market orientation and vice versa. H3: The greater the level of learning organisation and the level of market orientation, the greater the level of business performance. H4: The greater the level of turbulence and the level of competitive intensity, the stronger the relationship between the learning organisation and market orientation with business performance. The study used both quantitative and qualitative research methods, an approach which may be referred to as "mHhodological triangulation". Measuring instruments were developed for all constructs used in the study. The questionnaire, making use of the Leaming Organisation Practices Profile (LOPP) and an extended version of MARKOR, consisted of 81, six-point, scale statements. 670 questionnaires were mailed to larger export ·;ompanies (as detennined by number of employees). A response rate of 17% was recorded. Finally, 20 open interviews were conducted with executives of companies who participated in the survey to gain a greater understanding of the properties of learning and market oriented organisations. The scale of the learning organisation was factor analysed in an exploratory way and the scale of market orientation in a confirmatory way, using the principal components method of factor extraction by a varimax rotation. In this way, the scales were refined and underlying factors were identified for the two constructs. Statistical analysis of the constructs of the research model showed instruments with acceptable levels of reliability and validity. The relationships between the constructs were explored by bivariate correlation and moderated regression techniques using SPSS 7.5.1. Structural equation modelling was applied to gain a deeper understanding of the interrelationships between the constructs by developing and testing four hypothetical models using AMOS (Analysis of moment structures). Results indicated that only the model where the learning organisation and market orientation were combined into one construct was satisfactory. Statistical analysis provided support for H2 and H3. In contrast, for HI and H4 no convincing statistical evidence was found. The study produced a modified and short questionnaire to measure the learning organisation, market orientation and business performance. This questionnaire may be used by companies for self­assessment. This study also provided benchmarks for companies with which to compare themselves.