Effect of learning organisation on organisational performance mediated by innovation
Date
2024
Authors
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Volume Title
Publisher
Inderscience Enterprises
Abstract
This research examined the impact of the learning organisation on organization performance through innovation among the multinationals residing in Malaysia. Learning organisation was measured using continuous learning, inquiry and dialogue, team learning, embedded system, people empowerment, system connectivity, and strategic leadership. The dependent variables are innovation and organisational performance. A sample size of 155 respondents were selected from multinationals using systematic random probability sampling. The finding showed that only system connectivity had a positive and significant impact on organisational performance. Also, this study found that an embedded system has a significant but negative impact on organisational performance. This study found that none of the learning organisation dimensions have any significant effect on innovation. However, innovation has a positive and significant effect on organisational performance. Also, this study did not find any mediating effect of innovation on relationship between learning organisation and organisational performance. Managers could make decisions on improving strategies to foster innovation, system connectivity, and embedded systems to improve organisational performance. The study contributes to the existing literature by establishing the fact that system connectivity of learning organisation and innovation are two key determinants of organisational performance. Managers will be able to emphasis on strategies to promote system connectivity and innovation through effective human resource development intervention to improve organisational performance. The study was limited to small sample responses and focused on selected multinationals. Therefore, future research could study using a larger sample size covering most of the multinationals in various sectors in Malaysia.
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Keywords
Business Management