Organizational Learning Culture - The Missing Link between Business Process Change and Organizational Performance

International Journal of Production Economics, Vol. 106, No. 2, pp. 346-367, 2007

22 Pages Posted: 9 Dec 2008

See all articles by Miha Škerlavaj

Miha Škerlavaj

BI Norwegian Business School, Department of Leadership and Organisational Behaviour; University of Ljubljana - Faculty of Economics, Department of Management and Organization

Mojca Indihar Stemberger

affiliation not provided to SSRN

Rok Skrinjar

affiliation not provided to SSRN

Vlado Dimovski

University of Ljubljana

Date Written: April 1, 2007

Abstract

The aim of this paper is to present and test a model of organizational performance improvement based on the impact of organizational learning culture. The concept of organizational learning culture (OLC) is proposed and defined as a set of norms and values about the functioning of an organization. They should support systematic, in-depth approaches aimed at achieving higher-level organizational learning. The elements of an organizational learning process that we use are information acquisition, information interpretation, and behavioral and cognitive changes. Within the competing values framework OLC covers some aspects of all four different types of cultures: group, developmental, hierarchical, and rational. We use data from 203 Slovenian companies employing more than 50 people. The impact of OLC on organizational performance is empirically tested via structural equation modeling (SEM). The results show that OLC has a positive direct impact on all three aspects of non-financial performance included in the model: performance from the employee, customer, and supplier perspectives. The effect of organizational learning culture on financial performance is still positive, but indirect (through non-financial performance from the employee perspective).

Keywords: Organizational learning culture, Competing values framework, Organizational performance, Structural equation modeling

JEL Classification: M1

Suggested Citation

Skerlavaj, Miha and Indihar Stemberger, Mojca and Skrinjar, Rok and Dimovski, Vlado, Organizational Learning Culture - The Missing Link between Business Process Change and Organizational Performance (April 1, 2007). International Journal of Production Economics, Vol. 106, No. 2, pp. 346-367, 2007. Available at SSRN: https://ssrn.com/abstract=1308615

Miha Skerlavaj (Contact Author)

BI Norwegian Business School, Department of Leadership and Organisational Behaviour ( email )

Nydalsveien 37
Oslo, 0442
Norway

HOME PAGE: http://www.bi.edu

University of Ljubljana - Faculty of Economics, Department of Management and Organization ( email )

Kardeljeva ploscad 17
Ljubljana, 1000
Slovenia

HOME PAGE: http://www.ef.uni-lj.si/en

Mojca Indihar Stemberger

affiliation not provided to SSRN

Rok Skrinjar

affiliation not provided to SSRN

Vlado Dimovski

University of Ljubljana ( email )

Dunajska 104
Ljubljana, 1000
Slovenia

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