International Journal of Multidisciplinary Research and Development

International Journal of Multidisciplinary Research and Development


International Journal of Multidisciplinary Research and Development
International Journal of Multidisciplinary Research and Development
Vol. 7, Issue 2 (2020)

Relationship between organizational learning, innovation capability, and business performance of Indonesian manufacturing SMES


Raihan, Untung Setiyo Purwanto

Much research has been done to examine the relationship between organizational learning, innovation capability, and company performance. The results of various studies confirm the existence of a positive relationship between organizational learning, innovation capability, and company performance. However, empirical research that focuses on the relationship between these three constructs simultaneously is still limited. This study explores the relationship between these three constructs using Structural Equation Modeling with data obtained from 62 manufacturing companies located in the eastern region of Jakarta province, Indonesia. The finding supports the notion that learning in organizations can play a role as a driver for improving company performance as well as a determinant of innovation activities. The capability of innovation itself is the main driver for improving company performance. Specifically, the findings indicate that the effect of learning in organizations on innovation capability is higher than its effect on manufacturing performance. The findings reflect that innovation capability is capable of acting as mediators in the relationship between organizational learning and manufacturing performance.
Pages : 58-63 | 346 Views | 83 Downloads