The Impact of Competitive Strategies on Responsive Market Orientation, Proactive Market Orientation, Learning Orientation and Organizational Performance

Drawing on the strategy implementation approach and the resource-based view of the firm this study examines the relationships among competitive strategies (differentiation and cost-leadership), responsive market orientation (RMO), proactive market orientation (PMO), learning orientation (LO) and organizational performance. The study used questionnaire survey of senior managers of 251 manufacturing and service companies in Jordan. The study employed partial least squares (PLS) to test the hypotheses. Moderate but significant relationships are evident in the links between Cost Leadership and Learning Orientation, and Responsive Market Orientation and Organizational Performance. Strong significant relationships are exhibited in the links between Differentiation and Responsive Market Orientation; Differentiation and Proactive Market Orientation, Differentiation and Learning Orientation, and between Learning Orientation and Organizational Performance. This shows that Differentiation strategy is more important than Cost Leadership strategy and that Learning Orientation is the most important factor for better Organizational Performance.