The process of organisational learning and its value for organisational performance

Abstract

Organisational learning has been advocated as a key enabler of organisational performance improvement. However, despite over half a century of research, such claims attributed to organisational learning cannot be adequately verified. To date, the field is fragmented where agreement is not evident on even the fundamental aspects such as the definition or process. It has been proposed that the organisational learning concept may outlive its usefulness unless these anxieties are addressed. To ameliorate these anxieties, it was argued that further empirical research utilising carefully constructed methodologies needs to be conducted to help validate the claims attributed to organisational learning. The following research addresses this need by empirically studying organisational learning and evaluates the concept’s value for organisational performance. A researchable organisational learning model was developed and extended to include a link with organisational performance. The rationale of the developed model proposed that organisational learning, in comparison to individual learning, aids a broader understanding of the business environment and the formation of a shared vision which provides the basis for unified action leading to organisational performance improvement. The proposal was then longitudinally tested in four organisations with senior and departmental managers by utilising a causal cognitive mapping method. The findings suggest that there is value in the organisational learning concept and the process should be fostered within organisations for potentially improved organisational performance. However, the results also advise caution in that barriers to effective organisational learning, such as cognitive inertia, need to be recognised and addressed. The research concludes that organisational learning can be potentially beneficial to an organisation and provides some empirical support for the concept that has been argued to be lacking

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