Purpose – This paper aims to explore a new causal link between learning, market and entrepreneurial
orientations and firms’ performance by introducing dynamic capabilities and competitive advantages as
mediator variables.
Design/methodology/approach – The mediating role of dynamic capabilities and competitive advantages
is tested using a sample of 1,190 Portuguese firms, and structural equation models.
Findings – It is shown that dynamic capabilities mediate the relationship between the three orientations–
learning, market and entrepreneurial–and competitive advantages of differentiation and cost leadership, and
both competitive advantages lead to firm’s performance. It is also shown that learning orientation is an
antecedent of market orientation and entrepreneurial orientation.
Practical implications – This research shows that firm’s performance depends on the capacity of firms to
learn, innovate, be proactive, take risks and collect the best market data. Indeed, by optimizing the internal
management and knowledge dissemination, firms will develop a set of capabilities and competitive advantages
that lead to an appropriate response to market challenges.
Originality/value – This study tests the relationship between strategic orientations and firm’s performance
by taking the mediating effects of dynamic capabilities and competitive advantages into account. This research
was conducted in Portugal.
This work was supported by national funds, through the FCT – Portuguese Foundation for Science and
Technology, under the projects UIDB/04011/2020 and UIDB/00315/2020. The authors sincerely
appreciate the valuable comments and suggestions from the editor and reviewers, which helped the
authors improve the quality of the article.
