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The paper investigates the relationships among learning orientation (LO), market orientation (MO), human resource practices (HRPs) and innovation and their association with organisational performance. The aim is to show that HRPs and innovation are important mechanisms for transmitting the benefit of LO and MO into performance outcomes.

Building on extensive literature, a model of the relationships is developed and empirically tested using survey data collected from 220 businesses. Data are analysed through structural equation modelling and/or path modelling. The primary aim is to assess direct, indirect and total effects of LO and MO on performance outcomes through HRPs and innovation (conceptualised as administrative, process and product innovation) as mediators. The study carefully traces the effects of each variable to distinguish between indirect effects and mediated effects.

HRPs are a major mechanism for transmitting the benefits of LO and MO. In some models this is even more important than innovation. The results also suggest that LO should be viewed as exploration while MO is the interface between exploration and exploitation and, finally, HRPs and innovation must be viewed as exploitation or implementation issues.

The study suggests that marketers should include HRPs in models of LO, MO, and innovation to enhance the explanations of these to organisational performance. This study suggests HRPs and innovation are important mediators.

The paper suggests that marketers need to consider the impact of HRPs on achievement of marketing goals and organisational performance.

It is increasingly being recognised that cross‐unit working relationships have a key role to play in the successful implementation of marketing decisions. Although there is a substantial body of literature on marketing's interactions with other functions, particularly technical units such as R&D, within the context of the new product development (NPD) process, linkages between marketing and human resources (HR) have not been empirically investigated although they are widely advocated in both the marketing and HR management literatures. The conceptual model presented and tested in this paper focuses on the antecedents of effective marketing/HR interactions and posits successful marketing strategy implementation as an outcome of these. Results from a study of UK service organisations suggest that implementation effectiveness is affected negatively by conflict and positively by communication and specifically, interpersonal, not written. In turn, these interdepartmental dynamics are affected by senior management support, joint reward systems, and informal integration. A number of conclusions are drawn which have important implications for managers and researchers alike.