The impact of learning orientation on entrepreneurial orientation and innovation in small-sized business firms

Abstract

In a world where the only thing one can trust in is a lack of confidence, an organisation in this wavy environment needs innovation, which by itself has a central role in moving toward a comparative advantage and supreme performance. Although many researchers have investigated the effect of innovation on a firm's performance, it seems that the research literature of the country is facing lack of applicable studies with respect to the effect of entrepreneurship orientation on learning, as well as innovation in general when observing the effect of learning orientation on innovation of small firms in particular. Examining 82 small firms of Tehran with the aim of filling the gap existing in the research literature of the country, the present article shows that entrepreneurship orientation has a significant and positive effect on an organisation's commitment to learning, open-mindedness and a shared vision of small firms. Moreover, the results obtained from the regression analysis further show indicative evidence of a significantly positive relationship between an organisation's commitment to learning, open-mindedness and shared vision and innovation of small firms.

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