Examining the relationship between learning organization characteristics and change adaptation, innovation, and organizational performance

• Date: 01 June 2005
• Author: Constantine Kontoghiorghes,Susan M. Awbre,Pamela L. Feurig
• Published date: 01 June 2005
• DOI: http://doi.org/10.1002/hrdq.1133

ARTICLES

Examining the Relationship

Between Learning Organization

Characteristics and Change

Adaptation, Innovation, and

Organizational Performance

Constantine Kontoghiorghes, Susan M. Awbrey,

Pamela L. Feurig

The main purpose of this exploratory study was to examine the relationship

between certain learning organization characteristics and change adaptation,

innovation, and bottom-line organizational performance. The following learn-

ing organization characteristics were found to be the strongest predictors of

rapid change adaptation, quick product or service introduction, and bottom-

line organizational performance: open communications and information

sharing; risk taking and new idea promotion; and information, facts, time, and

resource availability to perform one’s job in a professional manner.

Organizational leaders and theorists increasingly view learning as a key ele-

ment in developing and maintaining competitive advantage (Armstrong &

Foley, 2003; Baldwin, Danielson, & Wiggenhorn, 1997; DeGeus, 1988;

Goh & Richards, 1997; Liedtka, 1996; Nonaka, 1991; Porth, McCall, &

Bausch, 1999; Schein, 1993; Senge, 1990a; Slater & Narver, 1995; Stata,

1989). Although organizational learning has been studied for decades

(Argyris & Schön, 1978, 1996), a new emphasis on learning has arisen due

to rapid changes in the business climate, including uncertain market condi-

tions, increasing complexity, changing demographics, and global competition

(Altman & Iles, 1998; Peters, 1987; Probst & Buchel, 1997; Swain, 1999).

The view that learning increases competitive advantage has stimulated inter-

est in developing organizations that foster and promote learning. Learning

organizations are designed to increase competitiveness through generative

learning that is forward looking and reduces the major shocks of change,

through close relationships with customers and other key constituents that

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HUMAN RESOURCE DEVELOPMENT QUARTERLY, vol. 16, no. 2, Summer 2005

Copyright © 2005 Wiley Periodicals, Inc.

186 Kontoghiorghes, Awbrey, Feurig

allow for mutual adjustment, and through the ability to quickly reconfigure

and reallocate resources based on environmental change (Slater & Narver,

1995).

Recently, there has been a call to redefine the role of human resources in

ways that increase its strategic impact on organizational competitiveness and

success (Griego, Geroy, & Wright, 2000; Ulrich, 1997a, 1997b, 1999). Human

resource development (HRD) professionals are being asked to take a leader-

ship role in transforming organizations in ways that foster and promote learn-

ing. Creating a learning company requires an understanding of the learning

organization concept and its relationship to desired organizational outcomes.

Review of the Literature

We begin by examining the literature.

Distinguishing Between Organizational Learning and Learning Organi-

zations. The terms organizational learning and learning organization have been

used interchangeably in the past (Ortenblad, 2001). As a result, confusion has

attended the use of these terms (Burgoyne, 1999; Kiechel, 1990). However,

attempts have been made to clarify and distinguish the two concepts (Argyris,

1999; Argyris & Schön, 1996; DiBella, 1995; Easterby-Smith & Araujo, 1999;

Finger & Brand, 1999; Griego et al., 2000; Marquardt, 1996; Marsick &

Watkins, 1994; West & Burnes, 2000; Yang, Watkins, & Marsick, 2004; Tsang,

1997). Three normative distinctions between organizational learning and the

learning organization have been identified in the literature (Ortenblad, 2001).

First, organizational learning is viewed as a process or set of activities, whereas

the learning organization is seen as a form of organization (Tsang, 1997). Sec-

ond, some authors hold the view that learning takes place naturally in organi-

zations, whereas it requires effort to develop a learning organization (Dodgson,

1993). Third, the literature on organizational learning emerged from academic

inquiry, while the literature on the learning organization developed primarily

from practice (Easterby-Smith, 1997). Finally, Ortenbald (2001) suggests that

two additional factors should be added to the list to help differentiate the two

concepts: distinctions based on who learns (Cook & Yanow, 1993; Jones,

1995; Kim, 1993) and on the location of the knowledge (Blackler, 1995). In

organizational learning, the focus is on individual learners, whereas in the

learning organization, it is on learners at the individual, group, and organiza-

tional levels. In organizational learning, knowledge is viewed as residing in

individuals, while it is viewed as residing in individuals and in the organiza-

tional memory in learning organizations.

Theoretical Influences. Based on their review of the literature, Altman and

Iles (1998) describe four theoretical streams of influence that have helped to

shape the concept of the learning organization. The first is strategic manage-

ment. Strategic management changed the focus from the external environment

to viewing internal resources, such as human potential and core competencies,