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The Impact of Organizational Orientations on Medium and Small Firm Performance: A Resource-Based Perspective

Authors

  • Subhash C. Lonial,

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    • Subhash C. Lonia is a professor in the Marketing Department, College of Business, University of Louisville, KY.
  • Robert E. Carter

    Corresponding author
    • Address correspondence to: Robert E. Carter, University of Louisville, Marketing Department, College of Business, Louisville, KY 40292. E-mail: robert.carter@louisville.edu.

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    • Robert E. Carter is an associate professor in the Marketing Department, College of Business, University of Louisville, KY.

Abstract

Recent studies suggest that market, entrepreneurial, and learning orientations individually improve firm performance. In this study, we suggest that each of the orientations can enhance company success, but the potential of each orientation should not be viewed in isolation. Instead, we draw on the resource-based view of the firm, looking at these three orientations as capabilities of small and medium-sized enterprises (SMEs). The analysis was carried out on a sample of 164 SMEs. The results indicate that market, entrepreneurial, and learning orientations jointly give rise to positional advantage, which, in turn, is positively related to the performance of the firm.

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