The impact of organisational culture, learning and knowledge development on performance

Organisational learning represents a primary determinant of enhanced organisational performance. To meet the challenges of complex and turbulent business markets organisations have to quickly learn how to adapt operations. Existing knowledge concerning organisational learning is substantive and encompasses a voluminous literature. But, irrespective of the development of expanding theory and empirical study organisational learning is not fully understood. A number of limitations justify the requirement for further research. Processes and determinants of learning in a firm are not sufficiently explained. How organisational learning results in the accumulation of new stocks of knowledge is unclear. The claim that exploitation and exploration jointly moderate the predicted relationship between organisational learning and organisational knowledge relies on insufficient evidence. Under what circumstances learning contributes to an improvement in existing standards of performance has yet to be tested. As a consequence of the above limitations the aim of this study is to examine the impact of organisational culture, learning and knowledge development on performance. The research model grounded in literature proposes that organisational structure and organisational culture represent determinants of learning. Organisational learning is predicted to have a positive impact on the accumulation of unique stocks of organisational knowledge. The hypothesised relationship between organisational learning and organisational knowledge is moderated by exploitation and exploration effects. Accumulated stocks of organisational knowledge are assumed to result in enhanced standards of performance. Competing models have been formulated to test alternative configurations of the research model. Specifically, the model is tested at different levels of aggregation of the organisational learning, organisational knowledge and performance constructs. Research methods are undertaken in accordance with this authors' positivist orientation. The study setting is the UK construction industry.' Data are collected on a cross-sectional basis through the administration of a survey encompassing borrowed but purified measures of formative constructs. From the target population 76 usable replies were obtained. Data were analysed using partial least squares and the following are the main findings. A disaggregated model was adopted. Organisational structure does not represent a determinant of organisational learning (organisational learning comprises of individual, group and organisation dimensions). Organisational culture does represent a determinant of organisational learning. Organisation learning and organisational knowledge (organisational knowledge comprises of new product development, alliance formation and technological innovation) are not significantly related. Individual and group dimensions of organisational learning are significantly related to new product development, alliance formation and technological innovation. Exploitation has a moderating impact on new product development, alliance formation and technological innovation. Exploration does not. New product development and technological innovation impact positively on the finance and non-finance dimensions of performance. Alliance formation does not. Knowledge has been advanced as a result of this study. An original contribution is made that addresses important gaps and limitations in literature that constrain the theoretical and empirical development of the field. Practising managers are now able to enhance existing standards of performance because this research clearly explains how and under what circumstances learning can be introduced at the level of the firm