It is widely recognized that the development of learning capability is key to achieve a durable competitive advantage. However, the analysis of the relevance of learning capability to improve business performance and, thus, the organizational competence has been insufficiently developed in literature. Based on data from 111 Spanish companies, this article explores the link between learning capability and the improvement of business performance by comparing how the main dimensions of learning capability—stocks of knowledge and flows of learning—impact on performance, in terms of both non-financial and financial performance. The results show that those organizations with the highest levels in their knowledge stocks and learning flows obtain a superior performance.
Anderson, J. C. and Gerbing, D. W. (1988) ‘Structural Equation Modeling in Practice: A Review and Recommended Two-Step Approach’ , Psychological Bulletin13(3): 411-423 .
2.
Andreu Bench, M. and Solè Parellada, F. (2001) The Actual State of Knowledge Management in Spain: Utilization Profiles and Field for Improvement. Barcelona: Universitat de Barcelona .
3.
Appleyard, M. (1996) ‘How Does Knowledge Flow? Interfirm Patterns in the Semiconductor Industry’ , Strategic Management Journal17: 137-154 .
4.
Barney, J. B. (1991) ‘Firm Resources and Sustained Competitive Advantage’ , Journal of Management17(1): 99-120 .
5.
Bierley P. and Chakrabarty, A. (1996) ‘Generic Knowledge Strategies in the U.S. Pharmaceutical Industry’ , Strategic Management Journal17(winter special issue): 123-135 .
6.
Blacker, F. (1995) ‘Knowledge, Knowledge Work and Organizations: An Overview and Interpretation’ , Organization Studies16(6): 1021-1046 .
7.
Bontis, N. (1999) ‘Managing an Organizational Learning System by Aligning Stocks and Flows of Knowledge: an Empirical Examination of Intellectual Capital, Knowledge’, doctoral thesis, University of Western Ontario, Canada.
8.
Bontis, N. , Crossan, M. and Hulland, J. (2002) ‘Managing an Organizational Learning System by Aligning Stocks and Flows’ , Journal of Management Studies39(4): 437-470 .
9.
Brockman, B. K. and Morgan, R. M. (2003) ‘The Role of Existing Knowledge in New Product Innovativeness and Performance’ , Decision Sciences34(2): 385-419 .
10.
Brown, J. S. and Duguid, P. (1991) ‘Organizational Learning and Communities of Practice: Towards an Unified View of Working, Learning, and Innovation’ , Organization Science2: 40-57 .
11.
Calantone, R. J. , Cavusgil, S. T. and Zhao, Y. (2002) ‘Learning Orientation, Firm Innovation Capability and Firm Performance’ , Industrial Marketing Management31: 515-524 .
12.
Cangelosi, V. E. and Dill, W. R. (1965) ‘Organizational Learning Observations: Toward a Theory’ , Administrative Science Quarterly10: 175-203 .
13.
Castaneda, L. W. (2000) ‘Intrafirm Knowledge Transfer: a Review and Assessment of Current Research’ , paper presented at the Annual Academy of Management Meeting, Toronto, 6-9 August.
14.
Cohen, W. M. and Levinthal, D. A. (1990) ‘Absorptive Capacity: A New Perspective on Learning and Innovation’ , Administrative Science Quarterly35(1): 128-152 .
15.
Cook, S. and Brown, J. S. (1999) ‘Bridging Epistemologies: The Generative Dance between Organizational Knowledge and Organizational Knowing’ , Organization Science10: 381-400 .
16.
Cook, S. and Yanow, D. (1993) ‘Culture and Organizational Learning’ , Journal of Management Inquiry2(4): 373-390 .
17.
Crossan, M. , Lane, H. W. , White, R. E. and Djurfeldt, L. (1995) ‘Organizational Learning: Dimensions for a Theory’ , International Journal of Organizational Analysis3(4): 337-360 .
18.
Crossan, M. M. , Lane, H. W. and White, R. E. (1999) ‘An Organizational Learning Framework: from Intuition to Institution’ , Academy of Management Review24(3): 522-537 .
19.
Decarolis, D. M. and Deeds, D. L. (1999) ‘The Impact of Stock and Flows of Organizational Knowledge on Firm Performance: an Empirical Investigation of the Biotechnology Industry’ , Strategic Management Journal20: 953-968 .
20.
Dierickx, I. and Cool, K. (1989) ‘Assets Stocks Accumulation and Sustainability of Competitive Advantage’ , Management Science35: 1504-1511 .
21.
Dragonetti, N. C. and Roos, G. (1998) ‘La Evaluación de Ausindustry y el Business Network Programme: una Perspectiva desde el Capital Intelectual’ , Boletín de Estudios Económicos53(164): 265-280 .
22.
Easterby-Smith, M. (1997) ‘Disciplines of Organizational Learning: Contributions and Critiques’Human Relations50(9): 1085-1113 .
23.
Elkjaer, B. (2001) ‘The Learning Organization: An Undelivered Promise’ , Management Learning32(4): 437-452 .
24.
EFQM (2001) ‘The EFQM Excellence Model’, available at: http://www.efqm.org/imodel/modelintro
25.
Fiol, C. M. and Lyles, M. A. (1985) ‘Organizational Learning’ , Academy of Management Review10(4): 803-813 .
26.
Gardiner, P. and Leat, M. (2001) ‘Learning in Organizations: HR Implications and Considerations’ , Human Resources Development International4(3): 391-405 .
27.
Goh, S. C. and Ryan, P. J. (2002) ‘Learning Capability, Organizational Factors and Firm Performance’ , paper presented at the Third European Conference on Organizational Knowledge, Learning and Capabilities, Athens, Greece, 5-6 April.
28.
Grant, R. (1996) ‘Toward a Knowledge-Based Theory of the Firm’ , Strategic Management Journal17(winter special issue): 199-122 .
29.
Hedberg, B. (1981) ‘How Organizations Learn and Unlearn’, in P. C. Nystrom and W. H. Starbuck (eds) Handbook of Organizational Design, pp. 3-27. New York: Oxford University Press .
30.
Holland, J. H. (1975) Adaptation in Natural and Artificial Systems: An Introductory Analysis with Applications to Biology, Control, and Artificial Intelligence. Ann Arbor, MI: University of Michigan Press .
31.
Huber, G. P. (1991) ‘Organizational Learning: the Contributing Processes and the Literatures’ , Organization Science2(1): 88-115 .
32.
Johansson, U. , Eklöv, G. , Holmgren, M. and Martesson, M. (1998) ‘Human Resource Costing and Accounting versus the Balanced Scorecard’, working paper. Stockholm: School of Business, Stockholm University .
33.
Kaplan, R. S. and Norton, D. P. (1992) ‘The Balance Scorecard-Measures that Drive Performance’ , Harvard Business Review70(1): 71-79 .
34.
Kaplan, R. S. and Norton, D. P. (1993) ‘Putting the Balance Scorecard to Work’ , Harvard Business Review71(5): 134-147 .
35.
Kaplan, R. S. and Norton, D. P. (1996) ‘Using the Balanced Scorecard as a Strategic Management System’ , Harvard Business Review74(1): 75-85 .
36.
Kim, D. (1993) ‘The Link Between Individual and Organizational Learning’ , Sloan Management Review3(4): 37-50 .
37.
Kogut, B. and Zander, U. (1992) ‘Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology’ , Organization Science3(3): 383-397 .
38.
Leonard Barton, D. (1992) ‘Core Capabilities and Core Rigidities: A Paradox in Managing New Product Development’ , Strategic Management Journal13(8): 111-125 .
39.
March, J. G. (1991) ‘Exploration and Exploitation in Organizational Learning’ , Organization Science2(1): 71-87 .
40.
Marr, B. and Schiuma, G. (2001) ‘Defining Key Performance Indicators for Organizational Knowledge Assets’ , paper presented at the Second European Conference on Knowledge Management, Bled, Slovenia, November.
41.
Martin, J. M. (2000) ‘Approaches to the Measurement of the Impact of Knowledge Management Programs’ , Journal of Information Science26(1): 21-27 .
42.
Miner, A. S. and Mezias, S. J. (1996) ‘Ugly-duckling no More: Past and Futures on Organizational Learning Research’ , Organization Science7(1): 88-99 .
43.
Minzberg, H. , Quinn, J. B. and Voyer, J. (1995) The Strategy Process. Englewood Cliffs, NJ: Prentice-Hall .
44.
Nahapiet, J. and Goshal, S. (1998) ‘Social Capital, Intellectual Capital and the Organizational Advantage’ , Academy Of Management Review23(2): 242-266 .
45.
Neely, A. and Adams, C. (2001) ‘Perspectives on Performance: The Performance Prism’ , Journal of Cost Management15(1): 7-15 .
46.
Nicolini, D. and Meznar, M. D. (1995) ‘The Social Construction of Organizational Learning: Conceptual and Practical Issues in the Field’ , Human Relations48(7): 727-746 .
47.
Nonaka, I. and Takeuchi, H. (1995) The Knowledge Creating Company. New York: Oxford University Press .
48.
Popper, M. and Lipshitz, R. (2000) ‘Organizational Learning: Mechanism, Culture and Feasibility’ , Management Learning31(2): 181-196 .
49.
Prieto, I. (2003) ‘Una Valoración de la Gestión del Conocimiento para el Desarrollo de la Capacidad de Aprendizaje en las Organizaciones: Propuesta de un Modelo Integrador’ [‘A Valuation of Knowledge Management for the Development of Learning Capability in Organizations: An Integrated Model Proposal’], doctoral thesis. Department of Economics and Administration, University of Valladolid, Spain.
50.
Prieto. I. and Revilla, E. (2004) ‘Learning Capacity and Business Performance: A Measurement and Research’, in A. Neely , M. Kennerley and A. Walters (eds) Performance Measurement and Management: Public and Private, pp. 603-610. Cranfield: Cranfield University .
51.
Saint-Onge, H. (2002) ‘Human Structural and Customer Capital’ working paper, URL (consulted 2002): http://www.knowinc.com/saint-onge
52.
Sanchez, R. (2001) Knowledge Management and Organizational Competence. New York: Oxford University Press .
53.
Seibert, S. E. , Kraimer, M. L. and Liden, R. C. (2001) ‘A Social Capital Theory of Career Success’ , Academy of Management Journal44: 219-237 .
54.
Senge, P. (1990) The Fifth Discipline. New York: Doubleday .
55.
Slater, S. F. and Narver, J. C. (1995) ‘Market Orientation and the Learning Organization’ , Journal of Marketing59(July): 63-74 .
56.
Soo, C. W. , Devinney, T. M. and Midgley, D. F. (2004) ‘The Role of Knowledge Quality in Firm Performance’, in H. Tsoukas and N. Mylonopoulus (eds) Organizations as Knowledge Systems. Knowledge, Learning and Dynamic Capabilities. London: Palgrave Macmillan .
57.
Stata, R. (1989) ‘Organizational Learning: The Key to Management Innovation’ , Sloan Management Review30(3): 63-74 .
58.
Stewart, T. A. (1997) Intellectual Capital. The New Wealth of Organizations. New York: Currency Doubleday .
59.
Tippins, M. J. and Sohi, R. S. (2003) ‘IT Competency and Firm Performance: Is Organizational Learning a Missing Link?’ , Strategic Management Journal24(8): 745-761 .
60.
Vekstein, D. (1998) ‘Managing Knowledge and Corporate Performance: An Empirical Analysis of the World Automobile Industry’ , Omega26(5) 551-568 .
61.
Vera, D. and Crossan, M. (2003) ‘Organizational Learning and Knowledge Management: Toward an Integrative Framework’, in M. Easterby-Smith and M. Lyles (eds) Handbook of Organizational Learning and Knowledge Management, pp. 123-141. Oxford: Blackwell .
62.
Weick, K. E. (1993) ‘Organizational Redesign and Improvisation’, in G. P. Huber and W. H. Glick (eds) Organizational Change and Redesign, pp. 346-379. New York: Oxford University Press .
63.
Wenger, E. (1998) Communities of Practice: Learning, Meaning and Identity. Cambridge: Cambridge University Press .
64.
Yeung, A. K. , Ulrich, D. O. , Nason, S. W. and Von Glinow, M. A. (1999) Organizational Learning Capability. New York: Oxford University Press .
65.
Zahra, S. A. , Nielsen, A. P. and Bogner, W. C. (1999) ‘Corporate Entrepreneurship, Knowledge and Competence Development’ , Entrepreneurship: Theory and Practice23(3): 169-189 .
