Learning Orientation, Access to Debt Finance, Organizational Capability and Performance of Small and Medium Enterprises: A Proposed Model

Samson Waibe Bature, Rashdan M

Abstract

In the 21th century’s business environment, no business firm takes a lackadaisical approach to the marketplace and expect to succeed given the increasing global complexity and stiff competition among firms. The purpose of this study is to come up with some strategic action plans that may equip small and medium enterprises (SMEs) with the required broad capabilities to cope in the marketplace. Based on extant literature, and dynamic capability view, we propose that availability of external finance will enhance the positive relationship between learning orientation and organizational capability which may in turn lead to superior performance of SMEs in emerging economies. Empirical investigation on the proposed framework may give an in-depth insight pertains to the role of learning orientation in firm performance. Also, it will benefit SME owners/managers to imbibe the spirit of continuous learning to develop a broad base capability to keep abreast with rapid changes in the business environment.