Learning capability and business performance: a non‐financial and financial assessment

Abstract

Purpose

There has been little research that includes reliable deductions about the positive influence of learning capability on business performance. For this reason, the main objective of the present study is to empirically explore the link between learning capability in organizations and business performance evaluated in both financial and non‐financial terms.

Design/methodology/approach

Using data from 111 Spanish companies, research was conducted through a structural equation modelling. In doing so, a measurement model was conducted for the main constructs – learning capability, financial performance and non‐financial performance‐ and examine the paths between them.

Findings

The analysis shows the positive link existing between: learning capability and non‐financial performance; and non‐financial performance and financial performance.

Originality/value

This is a detailed empirical examination of learning capability as a source of performance in organizations. It should be of value to all those who think about the role of learning processes and knowledge in organizations, and who care about their effects on competitiveness.

Citation

Prieto, I.M. and Revilla, E. (2006), "Learning capability and business performance: a non‐financial and financial assessment", The Learning Organization, Vol. 13 No. 2, pp. 166-185. https://doi.org/10.1108/09696470610645494