The Effect of Entrepreneurship Orientation on Learning Orientation and Innovation: A Study of Small-Sized Business Firms in Iran

In the world where the only thing one can trust in is lack of confidence, for organization to this wavy environment, they need innovation, which by itself has a central role in moving toward the comparative advantage and supreme performance. Although many researches have Investigated the effect of innovation on firm‘s performance, it seems that the research literature of the country is facing lack of applicable studies with respect to the effect of entrepreneurship orientation on learning orientation and innovation in general and the effect of learning orientation on innovation of small firms in particular. Examining 82 small firms of Tehran with the aim of filling the gap existing in the research literature of the country, the present article shows that entrepreneurship orientation has significant and positive effect on organization's commitment to learning, open-mindedness and shared vision of small firms.Moreover, the results obtained from the regression analysis are indicative of the existence of significantly positive relationship between organization’s commitment to learning, openmindedness and shared vision and innovation of small firms.

Entrepreneurship Orientation, Innovation, Learning Orientation, Small Firms.