Learning capability and business performance: a non-financial and financial assessment
Purpose ‐ There has been little research that includes reliable deductions about the positive influence of learning capability on business performance. For this reason, the main objective of the present study is to empirically explore the link between learning capability
in organizations and business performance evaluated in both financial and non-financial terms. Design/methodology/approach ‐ Using data from 111 Spanish companies, research was conducted through a structural equation modelling. In doing so, a measurement model was conducted for
the main constructs ‐ learning capability, financial performance and non-financial performance- and examine the paths between them. Findings ‐ The analysis shows the positive link existing between: learning capability and non-financial performance; and non-financial performance
and financial performance. Originality/value ‐ This is a detailed empirical examination of learning capability as a source of performance in organizations. It should be of value to all those who think about the role of learning processes and knowledge in organizations, and who
care about their effects on competitiveness.
Keywords: Business performance; Financial performance; Knowledge management; Learning; Spain
Document Type: Research Article
Publication date: 01 March 2006
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