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Measuring organizational learning capability in Indian managers and establishing firm performance linkage An empirical analysis

Measuring organizational learning capability in Indian managers and establishing firm performance... Purpose – The purpose of this research is to measure Organizational Learning Capability (OLC) perception in the managers of public, private and multinational organizations and establish the link between OLC and firm performance. Design/methodology/approach – The data were collected from a sample of 612 managers randomly drawn from Indian industry, using a questionnaire survey. Findings – Organizational capability perception for the managers of the IT sector and of multinational firms was the highest, while it was lowest for the engineering sector. Mixed results were found for the market indicators of firm performance, i.e. firm's financial turnover and firm's profit as predictors of OLC in Indian organizations, where financial turnover was predicting organizational learning capability. Research limitations/implications – The research paper does not test the possibility of firm performance affecting OLC, which may be true, and the author acknowledges it as a limitation of the research study. Future studies may investigate this further. Originality/value – The managers felt that the processes for encouragement of experimentation and environmental scanning needed more attention in Indian industry. The variable of sensitivity to people and their potential provides implications for a rigorous talent management strategy. If adequate attention is paid to this dimension, then it can lead to gaining of competitive advantage, through retention and development of key talent. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Learning Organization Emerald Publishing

Measuring organizational learning capability in Indian managers and establishing firm performance linkage An empirical analysis

Jyotsna Bhatnagar
The Learning Organization , Volume 13 (5): 18 – Sep 1, 2006
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References (90)

Publisher
Emerald Publishing
Copyright
Copyright © 2006 Emerald Group Publishing Limited. All rights reserved.
ISSN
0969-6474
DOI
10.1108/09696470610679965
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this research is to measure Organizational Learning Capability (OLC) perception in the managers of public, private and multinational organizations and establish the link between OLC and firm performance. Design/methodology/approach – The data were collected from a sample of 612 managers randomly drawn from Indian industry, using a questionnaire survey. Findings – Organizational capability perception for the managers of the IT sector and of multinational firms was the highest, while it was lowest for the engineering sector. Mixed results were found for the market indicators of firm performance, i.e. firm's financial turnover and firm's profit as predictors of OLC in Indian organizations, where financial turnover was predicting organizational learning capability. Research limitations/implications – The research paper does not test the possibility of firm performance affecting OLC, which may be true, and the author acknowledges it as a limitation of the research study. Future studies may investigate this further. Originality/value – The managers felt that the processes for encouragement of experimentation and environmental scanning needed more attention in Indian industry. The variable of sensitivity to people and their potential provides implications for a rigorous talent management strategy. If adequate attention is paid to this dimension, then it can lead to gaining of competitive advantage, through retention and development of key talent.

Journal

The Learning Organization – Emerald Publishing

Published: Sep 1, 2006

Keywords: Learning; Company performance; Learning organizations; Managers; India

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