Role of Learning Orientation on Innovativeness and Organizational Performance

While many studies have investigated the role of learning orientation on a firm’s performance in SMEs and large enterprises, the literature provides little empirical evidence about the effect of learning orientation on innovation within small firms. Using data from 87 small service and manufacturers in Tehran, several hypotheses have been formulated and tested. The findings not only verify aspects of prior research, but also provide a new insight by exploring the impact of three components of learning upon innovation and its subsequent effect the performance of the Small firms. While support for some hypotheses was found, these results need to be evaluated in light of the limitations, which provide appropriate areas for further research.