COVID-19 Implications on the Relationship between Organizational Learning and Performance

Abstract

ABSTRACT This research examines the implications of COVID-19 on the relationship between organisational learning and operational performance in service organisations. By using social learning theory and transactive memory system theory, we developed competing hypotheses on how organisational learning and COVID-19 outbreak interact with each other to explain 10 their impact on operational performance. To test our hypotheses, we surveyed 106 employees of service organisations who have been remotely working during COVID-19 outbreak. The collected data were analysed through multivariate data techniques. We specifically measured operational performance to assess the organisation’s performance as they were the ones immediately affected by the outbreak of COVID-19, which then is expected to have a lagged 15 impact on financial performance. Through exploratory factor analysis, we identified two bundles of COVID-19 work implications, namely home office work environment and social distancing. Results confirmed that home office work environment positively mediates the relationship between organisational learning and operational performance of service organisations. Our research adds to theory, since we evidenced that individuals’ behaviours and work environment reciprocally influence each other, even when individuals are actually apart from the usual work environment, asobserved during the pandemic.