The relationship between the learning organization concept and firms' financial performance: An empirical assessment

Abstract

The concept of the learning organization has received considerable attention in the scholarly literature because superior learning processes have been heralded as a source of competitive advantage. Organizations that embrace strategies consistent with the learning organization are thought to achieve improved performance. Yet few empirical studies have examined the relationship between the learning organization concept and firms' financial performance. To assess this association, the authors obtained managerial responses to the Watkins and Marsick Dimensions of the Learning Organization Questionnaire (DLOQ^©) instrument along with both perceptual and objective measures of firms' financial performance. Results suggest a positive association between the learning organization concept and firms' financial performance. The article discusses implications for research and practice.