Does Organizational Learning Matter?

Abstract

The aim of this research is to empirically test the relationship between organizational learning and performance in SMEs in the ICT industry in Malaysia. According to the literature, organizational learning and innovation are crucial factors in organizational performance but the focus of this study is to determine whether organizational learning lead to better organizational performance. This study was conducted in a sample of 278 SMEs in Malaysia. The hypotheses in this study were developed to examine the relationship between organizational learning (OL) and organizational performance (OP). To conduct the analysis we made use of Analysis of Moment Structure (AMOS) and Statistical Package for Social Sciences (SPSS). The obtained results support the hypotheses implying a positive relationship between OL and OP. Several implications for management and policy are also discussed in light of the findings of this study.