Learning orientation, firm innovation capability, and firm performance

doi:10.1016/S0019-8501(01)00203-6

Industrial Marketing Management

Volume 31, Issue 6, September 2002, Pages 515-524

https://doi.org/10.1016/S0019-8501(01)00203-6 Get rights and content

Abstract

Contemporary organizations require a strong learning orientation to gain competitive advantage. Based on in-depth interviews with senior executives and a review of the literature, the present investigation delineates four components of learning orientation: commitment to learning, shared vision, open-mindedness, and intraorganizational knowledge sharing. A framework is tested using data from a broad spectrum of US industries. Learning orientation is conceptualized as a second-order construct. Its effect on firm innovativeness, which in turn affects firm performance, is examined. The results generally support theoretical predictions, and some interesting findings emerge.

Introduction

Innovation is closely related to organizational learning. Thompson [1] defines innovation as the generation, acceptance, and implementation of new ideas, processes, products, or services. According to Zaltman et al. [2] and Rogers [3], [4], it is an idea, practice, or material artifact perceived as new by the relevant unit of adoption. Amabile et al. [5] define innovation as the successful implementation of creative ideas within an organization (see also Ref. [6]). The innovation process involves the acquisition, dissemination, and use of new knowledge [7], [8], [9], [10]. There seems to be wide agreement that learning climate and firm innovation are highly correlated, and many authors have called for an examination of how they are linked [6], [7], [11], [12].

A systematic study of the relationship between learning orientation and firm innovation has not been carried out for two reasons. First, there is no general consensus on how to define and operationalize the learning orientation construct. Most researchers have viewed it as a single dimension, and different scales have been used to measure it. Few empirical studies have systematically examined the measurement properties of this construct. Second, the role of learning orientation in firm innovativeness remains unclear [13]. Hurley and Hult [6] propose an antecedent role, but empirical evidence on the relationship is imperative.

The present study investigates the relationships among learning orientation, firm innovativeness, and firm performance, through a model drawn from organizational learning theory and the new product literature. A construct of learning orientation is developed based on the literature. Learning orientation is proposed to be an important antecedent of firm innovativeness, which in turn influences firm performance. Four components of learning orientation are identified: commitment to learning, shared vision, open-mindedness, and intraorganizational knowledge sharing. Data were collected from 187 US firms to test the model.

In the next section, the conceptual framework is presented, and a set of testable hypotheses is proposed. Methods of the study are then introduced, which include information about the sample, study measures, data analysis, and test results. Following a discussion of the results, implications and limitations are offered.

Section snippets

The framework and hypotheses

The framework in Fig. 1 was derived from the literature on organizational learning and innovation [3], [4], [6], [14], [15], [16]. Researchers have concluded that organizational learning is associated with the development of new knowledge, which is crucial for firm innovation capability and firm performance [6]. An organization committed to learning is likely to possess state-of-the-art technology [17], which leads to greater innovation capability in both products and processes. Furthermore,

Data

The data used to test the hypotheses are drawn from a survey of senior executives from a broad spectrum of US industries. A sample of 400 R&D vice presidents was randomly drawn from the CorpTech Directory of Technology Companies. The sample frame covered a range of manufacturing and services industries, including chemicals, machinery, electronic, instruments, computer and data processing, engineering, and management services. Each informant was asked to evaluate the operation of a single

Measure validation

Fig. 1 illustrates the proposed latent variable model, showing all structural paths. Before testing this model, a series of tests was performed to establish the unidimensionality of the measures.

Discussion and implications

In this study, a framework for studying learning orientation, innovation capability, and firm performance was developed. The model was tested using data collected from large US firms. The results support all but one of the hypotheses and reveal that learning orientation is critical for innovation and performance. Based on the findings, a number of guidelines can be offered to both scholars and practitioners regarding the role of learning orientation in firm innovation.

Clearly, learning

Limitations and future research directions

This study emphasizes the importance of learning orientation and links it with innovation and performance, but it does not address the issue of how organizational learning should be carried out. Future research could identify the antecedents of learning orientation and construct a comprehensive framework of both antecedents and consequences. For example, many studies have explored learning from other firms through strategic alliance and other intraorganizational forms [50]. Future research can

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View full text

Learning orientation, firm innovation capability, and firm performance

Abstract

Introduction

Section snippets

The framework and hypotheses

Data

Measure validation

Discussion and implications

Limitations and future research directions

J Bus Res

J Bus Res

J Bus Res

J Bus Res

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