Strategic factors and significance of organizational innovation and organizational learning in organizational performance

Abstract

Purpose

The study investigates the experience and significance of strategic factors in organizational innovation (OI) and organizational learning (OL). The study also examines the impact of OI and OL on organizational performance.

Design/methodology/approach

The study takes a quantitative approach, with cross-sectional data collected to achieve its purpose. The respondents are CEOs of different organizations. The data collection tool, a survey questionnaire, is applied to a random sample. In total, data from 360 usable cases are analyzed to infer the results.

Findings

After employing structural equation modeling (SEM), the study findings reveal the positive and significant impact of strategic factors on OI and OL, with these factors comprising personal mastery, transformational leadership, a shared vision, proactivity, and the environment. Furthermore, OI and OL have a positive and significant impact on organizational performance.

Practical implications

The study's findings may reinforce knowledge of the different strategic factors/capabilities needed to attain a satisfactory level of organizational capabilities and, consequently, may increase organizational performance and encourage entrepreneurship. An investigation of these factors may impart benefits to an organization, such as becoming more innovative or providing a boost to learning. Managers of organizations may generate circumstances to make it easier to achieve the growth of these strategic factors/capabilities.

Originality/value

The study's findings may help to develop a better understanding of strategic factors, OI, OL, and organizational performance, particularly in a developing country context.

Citation

Soomro, B.A., Mangi, S. and Shah, N. (2021), "Strategic factors and significance of organizational innovation and organizational learning in organizational performance", European Journal of Innovation Management, Vol. 24 No. 2, pp. 481-506. https://doi.org/10.1108/EJIM-05-2019-0114