The Role of Employee Outcomes in the Relationship between Learning Organization and Performance of Large Manufacturing Firms

Abstract

Research in human resource strategy that attempts to link learning organization strategies with firm performance across many organizations, sometimes fails to pay attention to intervening variables that help to explain the nature of the relationship. This study was motivated by the desire to fill this gap in knowledge. The objective of the study was to assess the mediation of employee outcomes in the relationship between learning organization and performance measured in both financial and non-financial terms. Crosssectional survey design was used. A structured questionnaire based on a five-point likert type scale was used to collect data from 108 large manufacturing firms. Descriptive and inferential statistics were used to analyze data. Findings did not provide sufficient evidence to support mediation of employee outcomes in the relationship between learning organization and firm performance. The results contradict previous theoretical assumptions and empirical studies. However, the study confirmed that learning organization has a significant influence on employee outcomes. The results present diverse implications for policy, practice and research. Human resource development practitioners can use the findings to support the case for implementation of learning organization initiatives. Policy makers can use the findings to align learning organization practices and employee outcomes in the manufacturing sector to achieve superior performance. The study contributes to knowledge in human resource management on the role of employee outcomes in the learning organization–performance relationship