The relationship between organizational learning capability and business performance

Abstract

Purpose The purpose of this paper is to explore the relationship between organizational learning capability and business performance of Vietnamese firms. Design/methodology/approach Based on the literature review, the authors proposed five hypotheses covering the relationships between different dimensions of organizational learning capability and business performance. Data collected from a survey of 160 Master of Business Administration students working in different firms in Vietnam were analyzed to test the proposed hypotheses. Findings The results confirmed that organizational learning capability has positive effect on business performance. Moreover, two out of four dimensions of organizational learning capability are having positive relationship with business performance (management commitment to learning and “knowledge transfer and integration”). Practical implications The paper gives some suggestions for firms to improve their business performance through enhancing organizational learning capability. Originality/value This study provides important insights into the recognized yet under-researched relationship between organizational learning capability and business performance and confirms that organizational learning capability has a positive impact on business performance in Vietnam context.