Entrepreneurial orientation dimensions and production process innovation: secondary appraisal view of organizational learning capability and organizational differentiation strategy

Purpose This study aims to explore the role of entrepreneurial orientation (EO), organizational learning capability (OLC) and organizational differentiation strategy (ODS) in determining production process innovation (PPI) at the firm level. Using Lumpkin and Dess’s (1996, p. 136) all five EO dimensions as a determinant of OLC and ODS, this study has comprehensively explored new vistas of EO and PPI in the textile sector. Design/methodology/approach The study was designed to understand the predictors of PPI in the textile industry. Framework was developed using Lazarus’s (1991) three-stage outcome (i.e. PPI in our case)-based model. Data collected from 220 textile firms was analyzed using a second-generation partial least square approach. Findings Findings confirmed that autonomy, innovativeness and proactiveness have a significant impact on OLC. Whereas, risk-taking and competitive aggressiveness do not have a significant impact on OLC. Moreover, it is found that all five aforementioned EO dimensions have a significant impact on ODS. Furthermore, a substantial and significant impact of OLC and ODS in determining PPI is also confirmed. Practical implications To cater to the exploratory nature of this study a thorough importance performance map analysis for PPI was also performed. Findings confirmed that among all five EO dimensions autonomy and innovativeness have the highest importance for determining PPI. Whereas, among OLC and ODS, OLC has a high level of importance for determining PPI in the textile industry. Originality/value Conclusions drawn from this study have offered a new pinprick of light in terms of theoretical insight regarding EO dimensions, OLC and ODS. It is a substantial contribution to organizational learning theory (Argyris and Schön, 1997) and its role in PPI. Similarly, ODS has focused on the expanse of the theory of competitive strategy (Borch et al. , 1999; Porter, 1991) and its role in determining PPI at the firm level. By doing so, this study has enhanced our understanding of the role of EO and its relationship with OLC, ODS and PPI in the textile industry.