Measuring organizational learning capability in Indian managers and establishing firm performance linkage

Abstract

PurposeThe purpose of this research is to measure Organizational Learning Capability (OLC) perception in the managers of public, private and multinational organizations and establish the link between OLC and firm performance. Design/methodology/approach – The data were collected from a sample of 612 managers randomly drawn from Indian industry, using a questionnaire survey. Findings – Organizational capability perception for the managers of the IT sector and of multinational firms was the highest, while it was lowest for the engineering sector. Mixed results were found for the market indicators of firm performance, i.e. firm's financial turnover and firm's profit as predictors of OLC in Indian organizations, where financial turnover was predicting organizational learning capability. Research limitations/implications – The research paper does not test the possibility of firm performance affecting OLC, which may be true, and the author acknowledges it as a limitation of the research study. Future studies may investigate this further. Originality/value – The managers felt that the processes for encouragement of experimentation and environmental scanning needed more attention in Indian industry. The variable of sensitivity to people and their potential provides implications for a rigorous talent management strategy. If adequate attention is paid to this dimension, then it can lead to gaining of competitive advantage, through retention and development of key talent.