Market orientation and organizational learning in very small craft enterprises (VSEs)

Abstract

This article aims to analyze the impact of market orientation on organizational learning of Very small craft enterprises (VSEs) in developing countries. Although VSEs play a significant role in the economies of these countries, they often disappear from the market within a few years of being established. They frequently face specific challenges related to their limited resources, the competitive environment, and their lack of adaptability. This study is based on qualitative interviews with 27 VSE managers in Togo, supplemented by a quantitative survey of 482 managers. Linear regression was employed to quantify the influence of market orientation on organizational learning. The results demonstrate that market orientation is three-dimensional and positively influences organizational learning, which is one-dimensional. While VSEs demonstrate strong customer orientation and good inter-functional coordination, their competitive orientation is poorly formalized by contrast. Market orientation undeniably acts as a strategic resource, enabling managers of VSEs to develop their ability to identify and respond to customer needs by drawing on organizational learning.