• Title/Summary/Keyword: Organizational Learning Capability

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The Relationship between Organizational Capability, Organizational Learning and Financial Performance

  • HINDASAH, Lela;NURYAKIN, Nuryakin
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.8
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    • pp.625-633
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    • 2020
  • This study aims to empirically investigate the influence of organizational capability and organizational learning on the financial performance of family-business type small- and medium-sized enterprises (SMEs). In addition, this study examines the moderating role of SMEs' ages and the managers' experiences in the relationship between organizational capability and organizational learning on the SMEs financial performance. This study is a basic exploratory research conducted by using an empirical survey, i.e., sampling of the businessman (the owner) of family-business type SMEs cross-functional in the area of DIY. The study uses purposive sampling. The respondents are the SME businessmen from the various business sectors in Yogyakarta, Indonesia. The number of respondents is 150. Hypothesis testing used SPSS program's moderation regression approach; validity and reliability testing used confirmatory factor analysis and Cronbach's alpha. The result of this study shows that organizational capability positively and significantly affects the financial performance. Also, organizational learning significantly affects the financial performance. The organization's age factor does not moderate the relationship between organizational capability and the financial performance, but it is significant on the organizational learning. The factor of manager's experience moderates insignificantly on the relationship between organizational capability and financial performance. However, it is significant to the organizational learning.

The Link between Organizational Learning Capability and Quality Culture for Total Quality Management: A Case Study in Vocational Education

  • Lam Victor MY;Poon Gary KK;Chin KS
    • International Journal of Quality Innovation
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    • v.7 no.1
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    • pp.195-205
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    • 2006
  • Both the total quality management (TQM) and learning organization (LO) appear to be promising approaches for organizational transformation towards a more effective, efficient, and responsive organization in the past. The evolutionary development and theory supports for these two fields are distinct but they appear to have more in common than they have in distinctiveness. However, there is little synergy developed between these two fields both in academic research and industrial applications. It is possibly due to the fact that both the academia and industry are taking a limiting polarized view of TQM and LO and hence not getting the benefits of linking the two. This paper tries to establish a link between the organizational learning capability and the quality culture for TQM implementation based on a case study on the largest vocational education institution, the Vocational Training Council, of Hong Kong. The study reveals that there is a strong positive correlation between organizational learning capability and quality culture. The exploratory explanations for the links between the organizational learning capability constructs and the quality culture constructs are also discussed in this paper. The findings of the study support other literatures that TQM should be embedded in LO and serves as an enabler for organizational learning (OL) in transforming and creating organizations which continuously expand their abilities to change and shape their future.

Factors Influencing Innovation Capability and Operational Performance: A Case Study of Power Generation Fields in Vietnam

  • NGUYEN, To Tam;LE-ANH, Tuan;NGUYEN, Thi Xuan Hoa
    • The Journal of Asian Finance, Economics and Business
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    • v.9 no.5
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    • pp.541-552
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    • 2022
  • This research examines the effects of organizational learning and network involvement, as well as many contextual factors, on power generation businesses' innovation capability and operational success in Vietnam. This research also aims to attest to the moderating roles of top management support and company age, and firm possession type in the power generation industry. This study applied the exploratory factor analysis (EFA) and PLS-SEM approach for data analysis. In this research, we have tested hypotheses with data collected from 132 top managers and other key personnel from power generation companies in Vietnam. The results also attest to the moderating role of top management support on the two relationships between organizational learning - innovation capability and network involvement - innovation capability. Another important finding is that the company age has a negative impact on operational performance but shows a positive moderating role in the relationship between innovation capability and operational performance. This study highlights the central roles of organizational learning and innovation capability in impacting the organizational performance of power generation companies. These companies play a key role in supporting the development of industries in practice. This research also emphasizes the moderating roles of top management support and company age and possession type in practice.

The Roles of Organizational Learning Capability and Firm Innovation in the Relationship between Entrepreneurial Orientation and Firm Performance

  • KITTIKUNCHOTIWUT, Ploychompoo
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.10
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    • pp.651-661
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    • 2020
  • This research aims to examine the relationships among entrepreneurial orientation, organizational learning capability, firm innovation, and firm performance. To achieve a data collection, a mail survey procedure via questionnaire was implemented by using executives or managers of gems & jewelry industries, textile and clothing industries, leather and accessories, fashion apparel industries in Thailand as the key informants. Of the surveys completed and returned, 388 were usable. Hence, a model with a structural equation was used to evaluate the data survey of 388 respondents. The results reveal that, in terms of the mediating effect, organizational learning capacity and firm innovation can complement each other in order to improve entrepreneurial orientation. Findings show that entrepreneurial orientation improves firm innovation, which in turn improves firm efficiency. Firm innovation acts as a variable mediating between enterprise orientation and firm performance. Our findings contribute to the current emergence of organizational learning capacity that mediated the relationship between entrepreneurial orientation and firm performance. Entrepreneurial orientation is normally a firm performance that enterprises develop which can have use the information available and make an impact. It can be considered through the mediation of organizational learning capability, and firm innovation variable and as stated in previous literature, it can influence firm performance.

How to Build a Learning Capability for Innovation? A Framework of Market-Based Learning Process

  • Lee, Hyun Jung;Park, Jeong Eun;Pae, Jae Hyun
    • Asia Marketing Journal
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    • v.17 no.1
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    • pp.27-53
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    • 2015
  • Learning organization has been an important issue in both management and marketing areas. Also learning capability is a key construct of innovation process in a firm. Especially, in marketing context, several researchers have studied market-based learning and its relation with performance. Previous studies have shown that market-based learning has a positive impact on overall firm performance. However, there has been inconsistency in the concept of market-based learning itself and its relationships with antecedents and consequences. Given this conflicting and inconsistent results of previous research, this study has two main objectives. First, this paper proposed a conceptual framework that marketbased learning has two types of processes and each types of market-based learning will generate different types of performance. Second, the mediating role of marketing capability in learning-performance link is proposed. The proposed conceptual framework shows that organizations which have marketbased learning for innovation management can enjoy ambidextrous firm performance on both side of effectiveness and efficiency via marketing capability. Moreover our research model proposes key drivers of market based organizational learning.

The Effects of the Co-innovation with Suppliers through IT on the Product and Process Innovations in Manufacturing Firms (정보 기술을 이용한 공급 기업과의 공동 혁신이 제조기업 제품 및 과정 혁신에 미치는 영향)

  • Choe, Jong-Min
    • The Journal of Information Systems
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    • v.27 no.1
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    • pp.111-131
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    • 2018
  • Purpose This study empirically investigated the impact of information technology(IT) capability on the co-innovation with suppliers and the effects of the co-innovation with suppliers on the product and process innovations in manufacturing firms. We demonstrated that IT promotes innovations trough the sharing of knowledge with suppliers. Design/methodology/approach The empirical data were collected through post-survey. 97 valid survey data were finally collected. With a multiple-regression analysis, we confirmed the influence relationships among critical variables. Findings In the empirical results, it was found that IT integration positively and significantly influences the amount of inter-organizational information exchange with suppliers. The results showed that the inter-organizational information flow with suppliers has a positive and significant impact on the inter-organizational learning with suppliers. It was also observed that the inter-organizational learning with suppliers facilitates and promotes the co-innovation with suppliers. From these results, it is concluded that the co-innovation with suppliers is activated through the knowledge transfer or sharing caused by an inter-organizational information flow or learning. Finally, the positive effects of the co-innovation with suppliers on the product and process innovations were empirically confirmed. Thus, it is suggested that IT capability influences innovations through the co-innovation with suppliers caused by an inter-organizational information flow.

The Effects of Technological and Learning Capability of SMEs on the International Performance: Focusing on the Mediating Effect of Innovative Performance (중소기업의 기술역량과 학습역량이 국제화 성과에 미치는 영향: 혁신성과의 매개효과를 중심으로)

  • Young-Soo Yang;Jae-Eun Lee
    • Korea Trade Review
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    • v.45 no.2
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    • pp.87-102
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    • 2020
  • While many previous studies have emphasized that technological and learning capabilities have an important impact on internationalization, however, there have been few attempts to directly identify the mediating role of innovative performance in the relationship between them. Therefore, we tested the relationships among two organizational capabilities such as technological capability and learning capability, innovative performance and internationalization. Specifically, we explored the impact of two organizational capabilities on innovative performance and the mediating role of innovative performance on internationalization. We tested hypotheses based on 206 survey data of Gwangju and Jeonnam provinces' small and medium-sized enterprises (SMEs). The empirical results showed that both technological capability and learning capability had a significantly positive (+) effect on SMEs' innovation performance, and both technological capability and learning capability had a significantly positive (+) effect on internationalization performance. In addition, it was confirmed that the innovation performance is not only related to the relationship between technological capability and internationalization performance but also acts as a partial mediation role in the relationship between the learning capability and internationalization performance. Based on the results of this study, theoretical and practical implications were provided, and the limitations of this study and future research directions were also discussed.

Organizational Capabilities for Effective Knowledge Creation: An In-depth Case Analysis of Quinolone Antibacterial Drug Discovery Process (효과적 지식창출을 위한 조직능력 요건: 퀴놀론계 항생제 개발 사례를 중심으로)

  • Lee, Chun-Keun;Kim, Linsu
    • Knowledge Management Research
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    • v.2 no.1
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    • pp.109-132
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    • 2001
  • The purpose of this article is to develop a dynamic model of organizational capabilities and knowledge creation, and at the same time identify the organizational capability factors for effective knowledge creation, by empirically analyzing the history of new Quinolone antibacterial drug compound (LB20304a) discovery process at LG, as a case in point. Major findings of this study are as follows. First, in a science-based area such as drug development, the core of successful knowledge creation lies in creative combination of different bodies of scientific explicit knowledge. Second, the greater the difficulty of learning external knowledge, the more tacit knowledge is needed for the recipient firm to effectively exploit that knowledge. Third, in science-based sector such as pharmaceutical industry, the key for successful knowledge creation lies in the capability of recruiting and retaining star scientists. Finally, for effective knowledge creation, a firm must keep its balance among three dimensions of organizational capabilities: local, process, architectural capabilities.

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The effect of social capital on firm performance within industrial clusters: Mediating role of organizational learning of clustering SMEs (산업클러스터 내 사회적 자본이 기업성과에 미치는 영향: 조직학습의 역할을 중심으로)

  • Kim, Shin-Woo;Seo, Ribin;Yoon, Heon-Deok
    • Knowledge Management Research
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    • v.17 no.3
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    • pp.65-91
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    • 2016
  • Although the success of industrial clusters largely depends on whether clustering firms can achieve economic performance, there has been less attention on investigating factors and conditions contributing to the performance enhancement for clustering small and medium-sized enterprises (SMEs). Along this vein, we adopt the theories of social capital and organizational learning as those success factors for clustering SMEs. This study thus aims at examining what effect social capital accrued in the relationships among actors within clusters has on firm performance of clustering SMEs and what role organizational learning plays in the linkage between social capital and firm performance. For the empirical analysis, we operationalized the variables and their measures to develop questionnaires through the theoretical reviews on literatures. As a sample of 227 clustering SMEs, our collected data was analyzed by hierarchical regression analysis. The results confirmed that a high level of social capital, represented by network, trust, and norm, has positive effect on firm performance of clustering SMEs. We also found that clustering firms presenting high organizational learning, represented by absorptive and transformative capability, achieve better performance than those placing less value on organizational learning. Furthermore the significant relationship between social capital and firm performance is mediated partially through organizational learning. These findings imply not only that the territorial agglomeration of industrial cluster does not guarantee the performance creation of clustering SMEs but that they need to develop social capital among various actors within clusters, facilitating their knowledge diffusion. In order to absorb and mobilize the shared knowledge and information into strategic resources, the firms should improve their capability associated with organizational learning. These expand our understanding on the importance of social capital and organizational learning for the performance enhancement of clustering firms. Differentiating from major studies addressing benefits and advantages of industrial cluster, this study based on the perspective of firm-internal business process contributes to the literature advancement. Strategic and policy implications of this study are discussed in detail.

The Urgency of Business Agility During COVID-19 Pandemic: Distribution of Small and Medium Business Products and Services

  • BONGSO, Gromyko;HARTOYO, Rachmat
    • Journal of Distribution Science
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    • v.20 no.6
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    • pp.57-66
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    • 2022
  • Purpose: Business agility is an important key to survival for SMEs in Indonesia, especially during the COVID-19 pandemic. Indonesian local product distribution and service distribution are mostly served by SMEs. Agile businesses will be able to assist them in the proper distribution of products and services. This research examines how the direct and indirect influence of IT capabilities on business agility through organizational learning and business intelligence for small and medium enterprises in the distribution of Indonesian products and services. Research design, data and methodology: This research uses SEM method with SmartPLS tool. The sample of this research was conducted on small and medium enterprises in the distribution of Indonesian products and services. The sample obtained in this study was 202 SME owners or managers (strategic level). Results: Business intelligence plays a key role in improving business agility. The results of IT capability can directly and indirectly affect business agility through organizational learning. Conclusions: Business intelligence has the biggest role in increasing business agility in SMEs in Indonesia. IT capability has an indirect effect on business agility through organizational learning. The findings of this study prove that IT capabilities do not indirectly affect business agility through business intelligence.