The Impact of Learning organization on Organizational Performance An Empirical Study on Public and Private Commercial Banks in the Arab Republic of Egypt

Abstract

Purpose: The purpose of this study is to examine the relationships among a learning organization, knowledge and financial performance using the Dimensions of the Learning Organization Questionnaire and its abbreviated version. Design/methodology/approach: This study used a secondary data set and performed second-order factor analysis and structural equation modeling for testing the proposed relationships. Findings: The study found that a learning organization has a positive effect on knowledge performance; knowledge performance has a positive effect on financial performance; and knowledge performance fully mediates the relationship between a learning organization and financial performance. Research limitations/implications: This study contributes to validating the current dimensionality of the theoretical framework of a learning organization proposed by Watkins and Marsick (1993, 1996) and offers a valid conceptual framework of the relationship among the learning culture and organizational performance dimensions. Practical implications: This study re-stresses the significance of the learning and knowledge generated by the human resources of an organization and developed by human resource development practitioners. Originality/value: This study is valuable to human resource development scholars and practitioners interested in improving and measuring organizational performance.