Organizational learning and firm performance: a systematic review

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thanh Tung Do ◽  
Ngoc Khuong Mai
Keyword(s):  
Systematic Review ◽  
Organizational Learning ◽  
Firm Performance ◽  
Organizational Innovation ◽  
Empirical Studies ◽  
Content Type ◽  
Quantitative Studies ◽  
Literature Reviews ◽  
Different Dimensions ◽  
The Relationship

PurposeThis study aims to systematically review empirical research on the relationship between organizational learning (OL) and firm performance (FP) to evaluate how far the field has come.Design/methodology/approachThis study follows a systematic, transparent and replicable approach suggested by Vom Brocke et al. (2009) to conduct a systematic review. A total of 52 empirical studies published over the years 1999–2019 was retrieved and analyzed.FindingsThree key themes related to the OL–FP relationship have emerged from the review. First, research on OL and FP has been quantitatively conducted in a variety of countries and sectors. Second, dimensions of OL foster both financial and non-financial performance of firms through their combinations and interactions. Third, the relationship between OL and FP is mediated by organizational innovation.Research limitations/implicationsThe literature search returned only quantitative studies on OL and FP, which was accepted within the scope of this review. Future studies are encouraged to systematically examine case studies and qualitative research on OL and FP.Practical implicationsThis review demonstrates that FP can be improved through different dimensions of OL. Based on our findings, managers wanting to enhance the performance of their firms can analyze the demand for OL and develop those OL dimensions.Originality/valueThis is among the first systematic literature reviews on OL and FP. The findings of this study also contribute to the previously scattered understanding of OL and FP.

Review of empirical research on leadership and organizational learning

2020 ◽  
Vol 24 (5) ◽  
pp. 1201-1220 ◽  
Author(s):  
Thanh Tung Do ◽  
Ngoc Khuong Mai
Keyword(s):  
Organizational Learning ◽  
Empirical Studies ◽  
Future Research ◽  
Research Directions ◽  
Content Type ◽  
Research Areas ◽  
Literature Reviews ◽  
English Articles ◽  
The Relationship ◽  
Leadership Approaches

Purpose This paper aims to investigate how the relationships between different leadership approaches and organizational learning have been examined in the literature, from which future research areas can be recommended. Design/methodology/approach This systematic literature review applies matrix method to examine major literature in leadership and organizational learning. A total of 57 peer-reviewed English publications from 45 journals were selected and analyzed. Findings The synthesis of these empirical studies revealed as follows: the relationship between leadership and organizational learning has been mostly quantitatively investigated in many countries and sectors; multiple leadership styles have been identified to ameliorate processes, levels and capabilities of organizational learning and transformational leadership still remains the most commonly used style; there are mediating mechanism and boundary conditions in the relationship between leadership and organizational learning. Research limitations/implications The literature search in this study was mainly focused on English articles only; therefore, some papers in other languages may have not been included. Practical implications This review offers an overall picture of the existing knowledge of organizational learning and leadership that will be fruitful for practitioners to understand and replicate these concepts. Originality/value There are little systematic literature reviews on the relationship between leadership and organizational learning. This paper is among the first systematic reviews to analyze how leadership has been associated with organizational learning and provide potential research directions.

Knowledge heterogeneity, social capital, and organizational innovation

2018 ◽  
Vol 31 (2) ◽  
pp. 304-322 ◽  
Author(s):  
Fu-Sheng Tsai
Keyword(s):  
Social Capital ◽  
Design Methodology ◽  
Qualitative Data ◽  
Organizational Innovation ◽  
Three Dimensions ◽  
Shared Knowledge ◽  
Content Type ◽  
Quantitative Studies ◽  
The Relationship ◽  
Heterogeneous Knowledge

Purpose Observing across four comparative case organizations, the purpose of this paper is to identify two sources of contingency (i.e. construct and contextual contingency) for the relationship between knowledge heterogeneity and innovation. Design/methodology/approach The contingencies was explored by conducting a comparative case analyses with rich qualitative data extracted and interpreted from four case companies. Findings First, the construct contingency is examined by refining knowledge heterogeneity into three dimensions: domain, process, and context heterogeneity. Specifically, the author proposed that knowledge heterogeneity in domain is associated with innovation in an inverted U-shape, while heterogeneity in process and context dimensions both negatively influence innovation. Second, contextual contingency is studied. The author proposed that: trust positively moderates the relationship between knowledge heterogeneity and innovation; depending on the knowledge owner attributes, centralization positively or negatively moderates the relationship between heterogeneous knowledge and innovation; shared knowledge vision positively moderates the relationship between knowledge heterogeneity and innovation. Originality/value The influences of knowledge heterogeneity on innovation have yet been inconsistent. The present study set to reconcile such inconsistency with a solution of contingencies that intervene the heterogeneity-innovation relationship. These results offer useful references for future large-scaled, quantitative studies.

scholarly journals The relationship between organizational learning and sustainable performance: an empirical examination

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anna Zgrzywa-Ziemak ◽  
Katarzyna Walecka-Jankowska
Keyword(s):  
Organizational Learning ◽  
Organizational Performance ◽  
Empirical Studies ◽  
Model Verification ◽  
Equation Modeling ◽  
Extensive Literature ◽  
Empirical Examination ◽  
Content Type ◽  
Sustainable Performance ◽  
The Relationship

Purpose The purpose of this study is to investigate the relationship between organizational learning (OL) and business sustainability (BS) and to carry out its empirical examination. Design/methodology/approach Extensive literature research was carried out. Then, an empirical study was conducted in 694 Polish and Danish companies. Two phenomena related to OL were adopted: OL processes and organizational learning capability (OLC). BS was examined through the concept of sustainable performance (SP). Research models were tested using structural equation modeling. Findings The empirical studies have shown a positive, statistically significant relationship between OL and BS. The research supports the view that the intensification of the OL processes is substantial for BS, whereas the OLC concept is less relevant to the development of BS. The effect of OL on total SP was stronger than on any SP dimension. OL supports the synergies of the results obtained by the organization for the benefit of BS. Research limitations/implications The model verification is based on the samples from two countries, and, therefore, the hypothesis requires further verification in different business contexts. In addition, there are different factors influencing BS, which have not been included in the research and should be analyzed in the future. Originality/value An in-depth, critical literature analysis shows that the theoretical foundation of the role of OL in shaping BS is fragmented and poorly empirically verified. The value of this paper is the presentation of large-scale empirical studies comparing the relationship between BS and two phenomena: OLC and the OL processes. The results obtained in the course of the research open up new research directions with respect to both the relationship between OL and BS as well as between OL and organizational performance.

Mediating effect of organizational learning and moderating role of environmental dynamism on the relationship between strategic change and firm performance

2019 ◽  
Vol 12 (2) ◽  
pp. 275-297 ◽  
Author(s):  
Haruna Isa Mohammad
Keyword(s):  
Organizational Learning ◽  
Firm Performance ◽  
Strategic Change ◽  
Developed Countries ◽  
Mediating Effect ◽  
Environmental Dynamism ◽  
Content Type ◽  
The Relationship ◽  
Moderating Role

Purpose With the materialization of literature on strategic change, it is clear that organizational learning and organizational dynamism have been among the most notable areas of study. The purpose of this paper is to extend the literature on strategic management by examining the mediating effects of organizational learning and the moderating role of environmental dynamism on the relationship between strategic change and firm performance. Design/methodology/approach A survey questionnaire was administered to 650 respondents who were both corporate and business-level managers of 22 main deposit money banks (commercial banks) and their branches across the country. In total, 630 questionnaires were returned and 587 were used after following all the processes of data preparation. Path analysis was employed to test the hypotheses in this study using Smart PLS 3. Findings The study found a significant mediating effect of organizational learning on the relationship between strategic change and firm performance. Although no significant moderating role of environmental dynamism was found, the directions of the path coefficients are consistent with the hypothesis. All the relationships between the constructs are significant. Research limitations/implications It is paramount for managers to understand the type of environment and learning that fits diverse kinds of strategic changes in order to improve firm performance. It is evident that changes that are not proactive and generative organizational learning may seem dangerous for a firm. However, organizations should learn to incorporate the change to be able to compete in a dynamic competitive environment. Originality/value Prior studies on strategic change, environmental dynamism and organizational learning have mainly focused on manufacturing and construction industries in the developed countries, but less has been done in the service sector, particularly the banking organizations in developing countries. Nigeria is one of those countries. Therefore, this study focuses on the links between strategic change and firm performance, moderating role of environmental dynamism and the mediating effect of organizational learning within the context of the Nigerian deposit money banks.

scholarly journals Identifying and assessing the scales of dynamic capabilities: a systematic literature review

2018 ◽  
Vol 25 (4) ◽  
pp. 390-412 ◽  
Author(s):  
Cíntia Cristina Silva de Araújo ◽  
Cristiane Drebes Pedron ◽  
Claudia Bitencourt
Keyword(s):  
Systematic Review ◽  
Quantitative Research ◽  
Dynamic Capabilities ◽  
Reliability And Validity ◽  
Organization Performance ◽  
Content Type ◽  
Quantitative Studies ◽  
The Relationship ◽  
Business Sectors ◽  
Practical Implications

Purpose The purpose of this paper is to identify the existing measure instruments for dynamic capabilities (DCs) in order to understand the tendencies of quantitative studies on DCs as well as to evaluate the reliability and validity of these scales. Design/methodology/approach To accomplish this objective, the authors conducted a systematic review of literature on DCs. Findings Main findings indicate that quantitative research works on DCs have focused on the relationship between DCs, innovation, organization performance, knowledge management and absorptive capacity. Findings also show that efforts to measure DCs quantitatively are recent and lack reliable methodology. Research limitations/implications One limitation of this research is that the authors conducted the systematic review on two databases. However, the authors conducted the research on the two most used databases in management research. Practical implications Findings show that academicians have plenty of room to work on quantitative research works on DCs as well as to develop robust scales to measure this construct in diverse business sectors. Originality/value This paper is the first to analyze the existing scales that measure DCs.

Entrepreneurial strategy making in tourism organisations: a systematic review and future research agenda

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Arthur Kearney ◽  
Denis Harrington ◽  
Tazeeb Rajwani
Keyword(s):  
Systematic Review ◽  
Firm Performance ◽  
Literature Review ◽  
Performance Outcomes ◽  
Future Research ◽  
Content Type ◽  
Future Research Agenda ◽  
Entrepreneurial Strategy Making ◽  
The Relationship ◽  
Strategy Making

PurposeUsing a state of the art CIMO literature review the paper develops a framework of the relationship between strategy making in the small tourism firm context and four performance outcomes.Design/methodology/approachThe paper uses the CIMO literature review method, adapted from the wider management literature to structure and integrate the existing fragmented literature base.FindingsPremised on the literature review, a framework of the relationship between strategy making and firm performance in context is posited. Emerging from a dominant owner/manager in a deeply embedded context strategy making influences firm performance across four dimensions. The influence is dynamic, continually subject to modification in a changing environment often mediated through emerging technology.Research limitations/implicationsThe CIMO method provides an integrated framework of the relationship between strategy making and small firm performance in context hence overcoming limitations of the fragmented nature of the research landscape. Emerging from the review key future research trajectories is posited.Practical implicationsWhile highlighting the relationship between strategy making and performance, the proposed framework implies owner/managers play the key role in strategy making with opportunities and challenges in modifying existing strategy making emerging from owner/manager embeddedness. Opportunities for improved policy interventions are posited.Originality/valueThe paper applies the systematic review to the relationship between strategy making and the small tourism firm.

scholarly journals Does organizational innovation always lead to better performance? A study of firms in Vietnam

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thi Thuc Anh Phan
Keyword(s):  
Firm Performance ◽  
Organizational Innovation ◽  
Positive Impact ◽  
Business Practices ◽  
Content Type ◽  
Interaction Terms ◽  
Workplace Organization ◽  
And Performance ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to explore the relationship between organizational innovation and performance of firms in Vietnam. Design/methodology/approach Based on the literature review, the author proposed five hypotheses covering the relationships between different aspects of organizational innovation and firm performance. Data collected from a survey of 266 firms in Vietnam were analyzed to test the proposed hypotheses. Findings Two out of three aspects of organizational innovation, including “innovation in business practices” and “innovation in workplace organization,” are significantly positively associated with firm performance. However, there was no evidence to support the relationship between firm performance and the third organizational innovation aspect, “organizational innovation in external relations.” The results also show that the interaction terms among three aspects of organizational innovation do not have significant impacts on firm performance. Practical implications Firms in Vietnam should pay more attention to innovation in business practices and innovation in workplace organization since two aspects have clear positive influences on performance. Moreover, firms can perform each of the organizational innovation aspects independently or in parallel, as the implementation of organizational innovation in one aspect does not influence the impact on the firm performance of organizational innovation in other aspects. Originality/value This study provides important insights into the widely recognized yet little-researched relationship between organizational innovation and firm performance and concludes that organizational innovation has a positive impact on firm performance.

The effect of board gender diversity on firm performance: evidence from Turkey

2016 ◽  
Vol 31 (7) ◽  
pp. 434-455 ◽  
Author(s):  
Merve Kılıç ◽  
Cemil Kuzey
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Empirical Studies ◽  
Gender Diversity ◽  
Content Type ◽  
Return On Equity ◽  
Firm Financial Performance ◽  
Board Gender Diversity ◽  
Return On Sales ◽  
The Relationship

Purpose This study aims to include two primary goals. First to determine the board characteristics of listed companies in Turkey and second to investigate the effect of board gender diversity on the performance of these companies. Design/methodology/approach This study uses an instrumental variables regression analysis to investigate the relationship between board gender diversity and firm performance using the data from 2008-2012 of the entities listed on the Borsa Istanbul. Findings The results indicate that the boards of these companies in Turkey are male-dominated. Moreover, this study shows that the inclusion of female directors is positively related to the financial performance of firms, as measured by the return on assets, the return on equity and the return on sales. Originality/value Limited empirical studies have been conducted on the relationship between board gender diversity and firm performance in emerging economies. Therefore, there is still no consensus regarding the link between board gender diversity and firm financial performance based upon the mixed and sometimes contradictory results in prior research. Therefore, this study extends the current literature in the context of Turkey, showing that a female member on the board can enhance the financial performance of a company.

scholarly journals Innovation capability for SME success: perspectives of financial and operational performance

2014 ◽  
Vol 11 (2) ◽  
pp. 163-175 ◽  
Author(s):  
Minna Saunila
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Organizational Innovation ◽  
Operational Performance ◽  
Innovation Capability ◽  
Content Type ◽  
Leadership Culture ◽  
And Performance ◽  
Relationship Of ◽  
The Relationship

Purpose – The relationship between overall innovation and innovation capability, and performance has been a topic of several earlier studies. However, the effects of the aspects of innovation capability on performance of a firm have stayed unfamiliar. The purpose of this paper is to study the relationship between organizational innovation capability and firm performance. The study contributes to the current understanding by presenting the important aspects of organizational innovation capability that affect firm performance. The effects are studied to both financial and operational performance. Design/methodology/approach – The approach of this study is quantitative. The data used to test the hypotheses were gathered from Finnish small- and medium-sized enterprises (SMEs) with a web-based questionnaire. The sample covered 2,400 SMEs employing 11-249 persons and having a revenue of two to 50 Meuro. The sample was randomly selected. Findings – The findings showed that three aspects of innovation capability, namely ideation and organizing structures, participatory leadership culture, and know-how development, has some effect on different aspects of firm performance. Surprisingly, the aspects of innovation capability were found to be more influential to the financial performance than operational performance. Practical implications – The paper contains suggestions for improving performance through developing innovation capability. The paper aims to support practice in two ways. First, organizations can identify aspects of innovation capability that affect operational and financial performance. In that way, organizations can benefit the results by applying these aspects in their everyday operations. Second, the results of the paper may help professionals to begin to understand that leveraging innovation capability may improve an organization's performance. Originality/value – Previous research has often either concentrated on innovation capability as a one dimension without studying the relationship aspect by aspect or studying only the effects of one aspect of innovation capability. The results of the study take one step further by investigating the relationship of multiple aspects of innovation capability and firm performance.

Contributory role of dynamic capabilities in the relationship between organizational learning and innovation performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mandana Farzaneh ◽  
Peivand Ghasemzadeh ◽  
Jamal A. Nazari ◽  
Gholamhossein Mehralian
Keyword(s):  
Organizational Learning ◽  
Pharmaceutical Industry ◽  
Organizational Performance ◽  
Dynamic Capabilities ◽  
Organizational Innovation ◽  
Innovation Performance ◽  
Hierarchical Regression ◽  
Firm Level ◽  
Content Type ◽  
The Relationship

PurposeThe direct impact of organizational learning (OL) on organizational performance has been studied over the past two decades. However, how OL contributes to organizational innovation still remains under-researched. Based on the knowledge-based view of the firm and dynamic capability theory, we developed a theoretical framework in order to empirically examine how OL offers organizations the essential tools for creating dynamic capabilities (DCs), which pave the way for innovation performance (IP).Design/methodology/approachThe authors apply a time-lagged, multisource and survey-based research designed to test the proposed model in the pharmaceutical industry where knowledge is a source of innovation. The data collected from companies operating in such an industry were analyzed by utilizing hierarchical regression analysis to explore how OL could lead to IP through DC.FindingsThe results indicated that OL is positively, significantly associated with DCs, as well as its dimensions of learning, integrating and reconfiguring capabilities. The findings showed that these capabilities are significant predictors of innovation performance. In addition, the findings revealed that innovation culture significantly moderates the relationship between DCs and innovation performance.Originality/valueBy dedicating more time and resources, managers can reinforce dynamic capabilities as a strategic tool to generate new knowledge and distribute it across the organization, which can go a long way toward boosting innovation performance in the pharmaceutical industry. This study offers researchers and practitioners invaluable insights into how effective OL can enhance firm-level innovation performance through dynamic capabilities.

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