The Effect of Organisational Learning on Small and Medium-Sized Enterprises (SMEs) Performance in Abeokuta, Ogun State, Nigeria
Keywords:
Organisational Learning, SMEs, Performance, Ogun State.Abstract
Organisational learning is vital for firms to gain competitive edge. Still, there is no indication that it is utilised by SMEs in Nigeria to improve efficiency. Hence, the study examined the effect of organisational learning on SMEs' performance to shed more light on this development.The study's population comprised all SME owners operating in Abeokuta North and Abeokuta South local government area. The Cochran's (1977) sample size formula was used to determine the sample size of 384 SMEs selected using purposive sampling technique across the two local government areas. Data were collected with the use of validated copies of structured questionnaires. The Partial Least Squares Structural Equation Modelling was used to analyse the data collected. The study's findings revealed that information acquisition, information interpretation, and organisational memory significantly and positively affected SMEs' performance. The study concluded that organisational learning had a significant positive effect on SMEs' performance. It was recommended that SME owners acquire information internally and externally through training, seminars, and learning from other SMEs; disseminate the acquired information in simple and easy ways among employees; and ensure that crucial information and decisions made are stored so that concerned individuals could have access to them to enhance organisational performance.
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Salim, I. M., &Sulaiman, M. (2013). Examination of the relationship between organisational learning and firm's product innovation. International Journal of Innovation and Learning, 13(3), 254 - 267.
Serinkan, C., Kiziloglu, M., Akcit, V., &Enli, P. (2014). Organisational learning capacity in cargo industry. Procedia-Social and Behavioural Sciences, 116, 4005-4009.
Shurafa, R., & Mohamed, R. B. (2016). Management control system, organisational learning, and firm's performance: An empirical study from developing economy. International Journal of Advanced and Applied Sciences, 3(10), 79–88.
Sibiya, K., Sandada, M., & Mago, M. (2016). The influence of organisational learning dimensions on the performance of haulage companies in Harare province, Zimbabwe. University of Zimbabwe Business Review, 4(1), 76 – 88.
SMEDAN (2017). SMEDAN and National Bureau of Statistics Collaborative Survey: Selected findings (2013).
Tam, S., &Gray, D. E. (2016). Organisational learning and the organisational life cycle: The differential aspects of an integrated relationship in SMEs. European Journal of Training and Development, 40(1), 2 – 20.
Ur Rehman, S., Bhatti, A., & Chaudhry, N. I. (2019). Mediating effect of innovative culture and organisational learning between leadership styles at third-order and organisational performance in Malaysian SMEs. Journal of Global Entrepreneurship Research, 9(36), 1 – 24.
Walker, R. M., Chen, J., & Aravind, D. (2015). Management innovation and firm performance: An integration of research findings. European Management Journal, 33(5), 407-422.
Walsh, J. P., &Ungson, P. (1991). Organisational memory. Academy of Management Review, 16, 57-90.
Wujiabudula, A., &Zehir, C. (2016). The effect of organisational learning on firm performance through product innovation. Journal of Global Strategic Management, 10(1), 79-88.
Alzuod, M. A., Isa, M. F., & Othman, S. Z. (2017). Organisational learning, innovative performance and the moderating effect of entrepreneurial orientation among Jordanian SMEs. Australian Journal of Basic and Applied Sciences, 11(1), 16-26.
Andreou, P. C., Louca, C., &Petrou, A. P. (2016). Organisational learning and corporate diversification performance. Journal of Business Research, 69(9), 3270-3284.
Argote, L., &Miron-Spektor, E. (2011). Organisational learning: From experience to knowledge. Organisation Science, 22(5), 1123 - 1137.
Banker, R. D., Potter, G., & Srinivasan, D. (2000). An empirical investigation of an incentive plan that includes non-financial performance measures. The Accounting Review, 75, 65-92.
Basten, D., &Haamann, T. (2018). Approaches for organisational learning: A literature review. Sage Open, 1 – 20.
Bryman, A., & Bell, E. (2015). Business Research Methods (4th ed.). Oxford University Press.
Chukwuma, E., Godwin, O., &Ndidi, P. O. (2017). Organisational learning and performance of selected paint manufacturing firms in Lagos State, Nigeria. International Journal of Investment Management and Financial Innovations, 3(5), 44-50.
Cochran, W. G. (1977). Sampling techniques (3rd ed.). New York: John Wiley & Sons.
Dada, O. L., & Fogg, H. (2014). Organisational learning, entrepreneurial orientation and the role of university engagement in SMEs. International Small Business Journal, 1-19.
Fang, S. R., Chang, E., Ou, C. C., & Chou, C. H. (2014). Internal market orientation, market capabilities and learning orientation. European Journal of Marketing, 48(1/2), 170-192.
Fernandez-Mesa, A., & Alegre, J. (2015). Entrepreneurial orientation and export intensity: Examining the interplay of organisational learning and innovation. International Business Review, 24(1), 148-156.
Franklin, P. T. (2015). Knowledge Management. Lagos: Tosin Press.
Gomes, C. F., Yasin, M. M., &Lisboa, J. V. (2004). An examination of manufacturing organisations' performance evaluation; analysis, implications and a framework for future research. International Journal of Operations and Production Management, 24(5), 488-513.
Gomes, G., &Wojahn R. M. (2017). Organisational learning capability, innovation and performance: Study in Small and Medium-Sized Enterprises (SMEs). Revista de Administracao, 52(2), 163 – 175.
Hair, J. F., Hult, G. T. M., Ringle, C., &Sarstedt, M. (2017). A primer on partial least squares structural equation modelling (PLS-SEM) (2md ed.). Thousand Oaks: Sage Publications.
Henri, J. F. (2006). Management control systems and strategy: A resource-based perspective. Accounting, Organisations and Society, 31(6), 529–558.
Hoque, Z., & Adams, C. (2011). The rise and use of balanced scorecard measures in Australian government departments. Financial Accountability and Management, 27(3), 308-334.
Kanten, P., Kanten, S., &Gurlek, M. (2015). The effects of organisational structures and learning organisation on job embeddedness and individual adaptive performance. Procedia Economics and Finance, 23, 1358-1366.
Kim, K., Watkins, K. E., & Lu, Z. (2017). The impact of a learning organisation on performance: Focusing on knowledge performance and financial performance. European Journal of Training and Development, 41(2), 177–193.
Megheirkouni, M. (2017). Leadership styles and organisational learning in UK for-profit and non-profit sports organisations. International Journal of Organizational Analysis, 25(4), 596–612.
Mills, A. M. & Smith, T. A. (2011). Knowledge management and organisational performance: a decomposed view. Journal of Knowledge Management, 15(1), 156 - 171.
Mylse, E. P. (2014). Implications of organisational learning on performance. Nigerian Journal of Business Statistics, 6, 361-374.
Nafei, W. A. (2015). Organisational learning and organisational performance: A correlation study in the Kingdom of Saudi Arabia. American International Journal of Social Science, 4(2), 191–208.
Neuman, W. L. (2005). Social research methods: Qualitative and quantitative approaches. USA: Pearson Education.
Nickels, W. G., McHugh, J. & McHugh, S. (2011). Understanding Business. New York: McGraw-Hill.
Pérez Lόpez, S., Montes Peόn, J. M., &VazquesOrdás, C. J. (2005). Organisational learning as a determining factor in business performance. The Learning Organisation, 12(3), 227‐245.
Preda, P., & Watts, T. (2004). Contemporary accounting innovations in Australia: Manufacturing versus service organisations. Journal of Management Accounting Research, 2(2), 17-27.
Salim, I. M., &Sulaiman, M. (2013). Examination of the relationship between organisational learning and firm's product innovation. International Journal of Innovation and Learning, 13(3), 254 - 267.
Serinkan, C., Kiziloglu, M., Akcit, V., &Enli, P. (2014). Organisational learning capacity in cargo industry. Procedia-Social and Behavioural Sciences, 116, 4005-4009.
Shurafa, R., & Mohamed, R. B. (2016). Management control system, organisational learning, and firm's performance: An empirical study from developing economy. International Journal of Advanced and Applied Sciences, 3(10), 79–88.
Sibiya, K., Sandada, M., & Mago, M. (2016). The influence of organisational learning dimensions on the performance of haulage companies in Harare province, Zimbabwe. University of Zimbabwe Business Review, 4(1), 76 – 88.
SMEDAN (2017). SMEDAN and National Bureau of Statistics Collaborative Survey: Selected findings (2013).
Tam, S., &Gray, D. E. (2016). Organisational learning and the organisational life cycle: The differential aspects of an integrated relationship in SMEs. European Journal of Training and Development, 40(1), 2 – 20.
Ur Rehman, S., Bhatti, A., & Chaudhry, N. I. (2019). Mediating effect of innovative culture and organisational learning between leadership styles at third-order and organisational performance in Malaysian SMEs. Journal of Global Entrepreneurship Research, 9(36), 1 – 24.
Walker, R. M., Chen, J., & Aravind, D. (2015). Management innovation and firm performance: An integration of research findings. European Management Journal, 33(5), 407-422.
Walsh, J. P., &Ungson, P. (1991). Organisational memory. Academy of Management Review, 16, 57-90.
Wujiabudula, A., &Zehir, C. (2016). The effect of organisational learning on firm performance through product innovation. Journal of Global Strategic Management, 10(1), 79-88.
Published
2021-02-11
How to Cite
Shodiya, A. O., & Ojenike, J. O. . (2021). The Effect of Organisational Learning on Small and Medium-Sized Enterprises (SMEs) Performance in Abeokuta, Ogun State, Nigeria: Array. Acta Universitatis Danubius. Œconomica, 17(2). Retrieved from https://dj.univ-danubius.ro/index.php/AUDOE/article/view/823
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Business Administration and Business Economics
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