Organizational Learning Capability of SMEs: Examination of Antecedents and Outcomes

By Kwang Sing Ngui.

Published by The Organization Collection

Format Price
Article: Print $US10.00
Article: Electronic $US5.00

The current study built and empirically tested a model of the relationships between selected organizational variables, organizational learning (OL) capability and performance in the context of small and medium sized enterprises (SMEs) in Malaysia. Theoretical advances in the OL domain have been based on the experiences of large organizations in the western hemisphere. In respond, the study focuses on analyzing the OL capability of SMEs in a transitional economy, namely Malaysia. Structural equation modeling was applied to analyze the datasets from 256 manufacturing and services SMEs. Statistical results showed that entrepreneurial orientation and human-capital development practices have direct positive effects on SMEs’ OL capability. It was further found that human-capital development practices mediated the relationship between entrepreneurial orientation and OL capability. This implied that while entrepreneurial orientation fosters the need for a strong OL capability, human-capital development practices serve as the mechanisms for developing such capability. Lastly, empirical evidence was provided to support the notion that OL capability enhances the performance of SMEs.

Keywords: Organizational Learning Capability, Small and Medium Sized Enterprise, Entrepreneurial Orientation, Human Resource Development

The International Journal of Knowledge, Culture and Change Management, Volume 7, Issue 9, pp.1-12. Article: Print (Spiral Bound). Article: Electronic (PDF File; 618.104KB).

Kwang Sing Ngui

Lecturer, School of Business, Swinburne University of Technology, Kuching, Sarawak Campus, Malaysia

Kwang Sing teaches courses in marketing and business strategy. He currently studies the managerial practices and strategies of small and medium sized enterprises, drawing on the resource and knowledge-based views of the firm theories in understanding differentials in their competitiveness. His research interest is in the fields of strategic management and marketing.

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