Abstract
This study explained the impact of market orientation, learning orientation, and innovation capability on product development. In product development literature, most of studies focused on the relationship between innovation capability and business performance; however, there is lack of studies that have focused on market orientation and learning orientation on innovation capability in Small and Medium Enterprises (SME) in order to enhance the process of product development which is the source of increased business performance. This study fills this gap and examined the impact of market and learning orientation through innovation capability on product development in SMEs. The data has been collected from the employees’ working in SME particularly from Packages industries operating in district Multan from Pakistan. The 302 questionnaires were collected from the employees. The data was analyzed through SPSS and PLS-SEM softwares. The results supported the direct relationship between market orientations and product development and learning orientation and product development. Moreover, the results also supported the indirect relationship through innovation capability between learning orientation and product development. This indicated a partial mediation of innovation capability between learning with product development. However, the result has not supported the mediation of innovation capability between the market orientation and the product development. The results pointed out that both orientations particularly market orientation need to focused while learning orientation improve and enhance the product development process through innovation capability.