The relationship between organizational learning and firm performance: the mediating roles of innovation and tqm

The main purpose of this study is to evince the influence of organizational learning on firm performance through the mediating roles of innovation and total quality management (TQM). The relationship is constructed based on the four dimensions of organizational learning namely; intra-organizational knowledge sharing, shared vision, commitment to learning and open mindedness and the two dimensions of firm performance explicitly; market performance and employee satisfaction. Amid in this research agenda three partial gaps have been explored: First, besides the relationship between TQM and innovation, a robust relationship of organizational learning and firm performance seem to be plausible but the gap embedded in the literature is the absence of a study examining the cumulative influence of the organizational factors which complement and enhance each other –organizational learning, innovation and TQM- on the organizational performance. In doing so this study investigates the four dimensions of organizational learning mentioned previously, the five dimensions of the TQM, particularly –participation, leadership, process management, continuous improvement and customer orientation, and innovation in the context of their impact to market performance and employee satisfaction as the components of firm performance. Second, previous works have almost exclusively focused on the co-alignment between organizational learning and innovation as compelled to deliver firm performance. While the relationship between organizational learning and firm performance has been investigated there has been minimal analysis of the phenomena taking into account the role of innovation. Hence little empirical evidence has so far been offered to support the positive relationship between these strategic weapons of the organization on the performance as well as each other. Third, the paper investigates the multidimensional and contingent gradual effect of organizational learning on firm performance through the conjunctive roles of innovation and TQM without ignoring the counteraction to potential changes from a satisfactory status-quo. Concurrently, this study develops a platform through which organizational learning will shape innovation, TQM and progressively the firm performance.

Organizational Learning ,

Innovation ,

Organizational Performance ,

Total Quality Management ,