The relationship between learning capability and organizational performance

Abstract

PurposeThe purpose of this paper is to present a meta‐analysis of a subset of published empirical research papers that measure learning capability and link it to organizational performance. It also seeks to examine both financial and non‐financial performance.Design/methodology/approachIn a search of published research on learning capability and organizational performance, the authors identified 33 articles that met criteria for inclusion in the meta‐analysis. Both objective and perceptual measures of organizational performance were considered to be acceptable. The data were analyzed using the Hunter and Schmidt meta‐analysis software.FindingsThe findings support a positive relationship between learning capability and organizational performance, with stronger results for non‐financial than financial performance. This has significant implications for justifying the investment in building a learning capability in organizations. Recommendations for managers are provided, such as the use of learning capability measures and the need to measure performance.Research limitations/implicationsThe paper discusses the implications of these results for further theory building and development to advance knowledge in the field. This includes addressing the need for new research designs, the issue of causality, potential mediating effects and the impact of context in better understanding this complex relationship. It suggests that research is also needed to increase our understanding of how to effectively build this learning capability.Originality/valueThis meta‐analysis provides empirical evidence to support the value of building a learning capability in organizations.