Entrepreneur Orientation, Market Orientation and Learning & Training Effect on Microfinance Business Performance

In a prominent scholastic work, Huang and Wang (2011) attempts to study whether and how is the effect of learning orientation on relationships between entrepreneurial orientation, market orientation and individual performance of innovation with regard to needs of customers in small and medium enterprises. The paper is fundamentally a review of literature , where based on the review findings the authors argue that an enterprise with great point of entrepreneurial orientation and market orientation necessitates the appliance of learning orientation in order to form an upbringing useful to facilitate relations between personnel and their enterprises leading to facilitation of learning and innovation. Based on their findings the authors develop four hypotheses that attempt to test relationship between entrepreneurial orientation and employee innovation, market orientation and employee innovation, learning orientation and entrepreneurial orientation with innovation behaviour, and learning orientation and market orientation with innovation behaviour. Further, the authors recommend empirical studies to test these hypotheses. Undeniably this work lacks in conducting developed hypotheses through empirical evidences, yet it is useful in view of the fact that these hypotheses may well be used by empirical researchers whilst assessing the effect of learning orientation on relationships between entrepreneurial orientation, market orientation and individual performance of innovation.

Further, Long(2013) has conducted a study examining the relationship amid learning orientation, market orientation and entrepreneurial orientation with reference to enterprises in a transition economy and how these put effect on the performance of enterprises. Collecting quantitative data through survey, the author has used Structural Equation Model to analyse the data. The findings of the study plainly reveal that there is a significant and positive effect of amid learning orientation, market orientation and entrepreneurial orientation, and further these collective put positive effect on the performance of enterprises. This study makes significant contribution in the current literature. Further studies may well be used using Structural Equation Model to study the relationship amid learning orientation, market orientation and entrepreneurial orientation and their effect on performance of enterprises, explicitly microfinance enterprise.

Moreover, in an empirical study Arshadet al (2013), study the effect of entrepreneurial orientation on business performance of small and medium enterprises with reference to five measures of entrepreneurial orientation namely innovativeness, proactiveness, risk-taking, competitive aggressiveness and autonomy. Using quantitative method, the authors conducted questionnaire based survey involving research participants from technology based small and medium enterprises, and the collected data has been analysed by the authors using standard quantitative analytical tool in the form of regression analysis. The findings of the study reveal that there is significant and positive relationship between entrepreneurial orientation and business performance of small and medium enterprises with reference to the entrepreneurial orientation measures of innovativeness, proactiveness, risk-taking and competitive aggressiveness, bit when it comes to the measure autonomy the relationship is not found significant. The validity and reliability of this study may well be enhanced using more sample in further study, as this study has been conducted with rather low sample size conducting standard quantitative research.

In a notable study, Ma’atoofi and Tajeddini (2010) have empirically examined the effect of entrepreneurial orientation on learning orientation and innovation. The study has been conducted with reference to Iran based 85 small scale business enterprises. The empirical data collected is analysed using correlation and regression , and the results reveal a positive and significant relationship between entrepreneurial orientation and learning orientation , learning orientation and innovation , and as well as entrepreneurial orientation and innovation. The implication of the study is that entrepreneurial orientation has positive and significant effect on learning orientation and innovation. Since this study has been conducted with reference small scale enterprises of Tehran, therefore the implications of the study cannot be demonstrative for countries in other parts of the world, and specifically for microfinance firms, nevertheless the study significant and empirically contribute in the current literature , which may well be used in further studies.

Herath and Mahmood (2012) argue based on their findings that small and medium enterprises in developing countries are rather less strategically oriented than enterprises in developed counties, where their strategic orientation implies market entrepreneurial orientation, market orientation and learning orientation. Based on their secondary research, the authors postulate that there is a significant relationship between strategic orientation (entrepreneurial orientation, market orientation and learning orientation) and small and medium enterprises’ performance in developing countries. The model extended by the authors may well be utilized in order better unravel the compound relationships between strategic orientation and performance of small and medium enterprises including microfinance enterprises in developing countries.

Geis (2015) have attempted to study the relationship between entrepreneurial orientation and market orientation, using entrepreneurial orientation attributed in the forms of self-efficacy, open-mindedness, self-regulation and linear thinking style. Collecting data by means of a four-monthly monitor survey and entrepreneurial diaries, and further involving 210 research participants, the author analyses the data using both qualitative and quantitative analytical tools. The findings of the study reveal that there is a significant and positive relationship between entrepreneurial orientation and market orientation, though in some cases a few attributes of entrepreneurial orientation are not strongly related with marketing orientation results. Even though the has several limitations that limit the scope of findings, nevertheless the study is useful explicitly in the context of revealing market orientation relationship with entrepreneurial orientation certain attributes in the forms of self-efficacy, open-mindedness, self-regulation and linear thinking style. More revelation in this regard may well be conducted by means of specifically quantitative study.

The review conducted here makes it apparent that in most cases studies reveal positive and significant relationship between entrepreneurial orientation, market orientation and learning orientation. Further these orientation measures most put positive effect on enterprises, particularly small and medium enterprises. Nevertheless, in a few cases the findings of the study are inconsistent in different context. Some studies lack in empirical evidences whereas some in methodological approach. Further study to be conducted must be overcoming these limitations in order to come up with more valid and reliable findings. The study in hand is a worth attempt in this direction.

REFERENCES

Arshad, A.Z., Rasli, A., Arshad, A.A. and Zain, M.(2013), The Impact of Entrepreneurial Orientation on Business Performance: A Study of Technology-based SMEs in Malaysia, Procedia – Social and Behavioral Sciences 130 ( 2014 ) 46 – 53

Geis, Felix M.M. (2015), The Entrepreneur in the Market Orientation: An Exploratory Research on how Entrepreneurial Attributes influence Market Orientation , 5th IBA Bachelor Thesis Conference , University of Twente, The Faculty of Behavioural, Management and Social sciences

Herath, H.M.A. and Mahmood, R.(2012), Strategic Orientation Based Research Model of SME Performance for Developing Countries, Rev. Integr. Bus. Econ. Res. Vol 2(1)

Huang, Shihping K. and Wang, Y.(2011), Entrepreneurial orientation, learning orientation, and innovation in small and medium enterprises, Procedia Social and Behavioral Sciences 24 (2011) 563–570

Long, Hoang C.(2013), The Relationship Among Learning Orientation, Market Orientation, Entrepreneurial Orientation, and Firm Performance of   Vietnam Marketing Communications Firms, Philippine Management Review 2013, Vol. 20, 3746

Ma’atoofi, A.R. and Tajeddini, K.(2010), The Effect of Entrepreneurship Orientation on Learning Orientation and Innovation: A Study of Small-Sized Business Firms in Iran, International Journal of Trade, Economics and Finance, Vol.1, No.3,



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One Response to Entrepreneur Orientation, Market Orientation and Learning & Training Effect on Microfinance Business Performance

  1. Ramana says:

    Article written is really good! Can I get such academic writing for my dissertation in operations management from you guys?

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