Abstract
Most learning organization studies have focused on enhancing the organization’s performance. However, learning organization extends beyond knowledge management that makes the organization more adaptable and more responsive to the challenges of a fast-changing business environment. The application of a learning organization is an alternative step for companies to be able to face the challenges of the fast-changing business environment. This paper aims to identify the effect of learning organizations on supply chain performance. This study adds the effect of transformational leadership as a variable that affects the comprehensive understanding of learning organizations to gain a. Structural Equation Modelling – Partial Least Square (SEM-PLS) was used to reveal that learning organization has no significant impact on supply chain performance. However, learning organization affected supply chain driver. The Supply chain driver has a positive and significant impact on supply chain performance. Leadership style has a positive and significant impact on learning organization. Organization can make better decisions on choosing facilities more efficiently, managing supplies efficiently and be can use the information itself to increase profits by implementing learning organization. Keywords: learning organization, SEM-PLS, supply chain performance, leadership, supply chain driver
Highlights
Facing a disruptive era requires businesses to be more efficient and creative in running their businesses
The present study aims to determine the impact of learning organization on supply chain performance
The results of this study show that learning organizations do not have significant impact on supply chain performance The evidence from this study shows that the organizations that develop learning organizations cannot improve their supply chain performance
Summary
Facing a disruptive era requires businesses to be more efficient and creative in running their businesses. In this era, businesses must respond faster to the challenges and change in the accelerated business environments. An adaptive business is determined by the organizational model it owns, so it must be carefully considered to determine the organizational model of the business. The organizations must be sensitive enough to adapt to change (Wen, 2014). The organizations' efforts in managing knowledge and developing their structural capital have resulted in relatively excellence business performance. The adoption of intellectual capital can solve the accelerating challenges and changing business environments (Santos et al 2012)
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