Introduction
This research paper will discuss how organizational learning plays a positive role in an organization’s competition, innovation, financial and economic results. It will analyze how organizational learning plays a positive role in an organization’s competition, innovation, financial and economic results.
An assessment of how organizational learning increases organizational performance will also be discussed. The paper will also analyze on how successful articles have demonstrated the relationship involving business performance and organizational learning.
Lastly, the paper will highlight my views on organizational learning playing a positive role in an organization’s competition, innovation, financial and economic results using practical examples and recent modern media sources to support my analysis.
Organizational Learning
Organizational learning is a vibrant way of creating, acquiring and integrating knowledge to develop capabilities and resources so as to improve the performance of an organization (Lopez et al., 2005, p. 228). In strategic management, one of the basic ways to provide competitive advantage in organizations is the establishment of organizational learning (Lopez, et al., 2005, p. 227).
For companies to gain competitive advantage, they become more involved in creating new innovations, changing their organizational structures and procedures and renewing their organization. These changes will influence vibrant capabilities among organizations (Hedlund, 1994; Lopez, et al., 2005, p. 227).
Due to environmental changes over time, organizations need to efficiently process and create knowledge and information. To gain competitive advantage, companies should have the ability to replicate knowledge since having a greater position in the market may not make an organization to gain competitive advantage.
It is therefore encouraged that companies adapt to organizational learning to survive in a competitive and dynamic environment (Sharifirad, 2010, p. 323). Changes that are driven by suppliers, competitors and customers create continuous pressure for firms that improve the products and therefore help in increasing customer loyalty.
This therefore creates the need for organizational learning to gain competitive advantage (Lopez, et al., 2005, pp. 229-230).
The relationship between organizational performance and environmental changes are influenced organizational learning. When an organization adapts to new innovations it shows performance increase. Once organizations starts implementing decisions caused by change, then opportunities are created for new innovations and practices and therefore increasing performance.
Studies show that there is a curvilinear effect on the implementation of organizational innovation on performance. Implementation of changes should be moderate since having too much or little implementation will effect performance negatively (Naveh, et al., 2006, p. 275).
Organizational performance is greatly influenced by organizational learning and firm’s experiences (Garcia-Morales, et al, 2006, p. 518).
Organizations should use concepts of systems thinking to facilitate an environment that is open for collaborations and cross-functional communication to influence organizational learning and therefore to enhance performance (Maani and Fan, 2008, p. 1).
The article, Organizational learning, has succeeded in demonstrating how organizational learning has an impact on performance through research and measures placed within the organizations. Organizational learning is assessed using a scale that that collects information and identify multidimensional learning quality.
Through the use of questionnaires, business performance has been demonstrated with indicators such as financial and economic results as well as competitiveness and innovation and competitiveness (Lopez, et al., 2005, p. 232).
Through practical examples demonstrated in surveys and organizational results from various studies, I think that that organizational learning has a great impact on performance of an organization. When employees are trained, the performance of an organization is increased (Lopez, et al., 2005).
Conclusion
Studies indicate that there is a positive relationship between business performance and organizational learning leading to great competitiveness, innovations, financial and economic results. Great performance gives feedback on the efficiency of organizational learning (Lopez, et al., 2005).
References
Garcia-Morales, V. J., LLorens-Montes, F. J. & Verdu-Jover, A. J., 2006. Organizational learning categories: Their influence on organizational performance. International Journal of Innovation and Learning. 3(5), pp. 518 – 536. Web.
Hedlund, G., 1994. A model of knowledge management and the N-Form Corporation, Strategic Management Journal, 15, pp. 73-90.
Lopez, S.P., Peon, J. M. M. & Ordas, C. J. V., 2005. Organizational learning as a determining factor in business performance The Learning Organization, 12 (3), pp. 227-245.
Maani, K. & Fan, A., 2008. Systems Thinking for Team and Organizational Learning: Case of Performance Measure Conflicts in a Multinational Supply Chain, 1, pp. 1-21.
Naveh, E., Meilich, O. & Marcus, A., 2006. The effects of administrative innovation implementation on performance: an organizational learning approach. Strategic Organization. Web.
Sharifirad, M. S., 2010. Relationship between Knowledge Inertia and Organizational Learning. International Journal of Information Technology and Knowledge Management. 2(2), pp. 323-327.