The Role of Transformative Learning in Mediating the Entrepreneurial Orientation‐International Performance Relationship: A Three‐Country Study

ABSTRACT Drawing on the organizational learning theory, the focus of this study is to investigate how transformative learning (TL) mediates the relationship between entrepreneurial orientation (EO) and international performance (IP). We use a quantitative approach based on 261 internationalized small‐ and medium‐sized enterprises located in the US, UK, and UAE. The results support the mediating role of TL and suggest that EO does not directly influence IP, but TL mediates the relationship. Subsequently, EO influences TL, which affects IP. The relationship between EO and IP is arguably the most critical question of entrepreneurial research and has been studied extensively by past scholars. This study proposes that the conflicting results may originate from the presence of a mediating variable that influences this important relationship. The discovery of a full mediation fills the existing literature gaps and provides practical implications for SME managers seeking to enhance their IP through strategic learning initiatives.