Organizational Learning, Innovation and Performance: A Study of Malaysian Small and Medium Sized Enterprises

Abstract

This empirical study attempts to investigate the effect of organizational learning on innovation as well as theimpact of innovation on company performance. Based on the literature review, two hypotheses are proposed toguide the study: the positive impact of organizational learning on innovation and the positive relationshipbetween innovation and performance. Data was collected via electronic survey from 320 small and mediumenterprises operating in the ICT industry in Malaysia. Findings from the study support both the two hypothesesthus providing further evidence that organizational learning contributes to innovation capability, and thatinnovation is positively related to firm performance. Several guidelines and practical implications from the studyare also discussed.