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 strategieswith firm performance across many organizations, sometimes fails to pay attention tointervening variables that help to explain the nature of the relationship. This study wasmotivated by the desire to fill this gap in knowledge. The objective of the study was toassess the mediation of employee outcomes in the relationship between learningorganization and performance measured in both financial and non-financial terms. Crosssectionalsurvey design was used. A structured questionnaire based on a five-point likerttype scale was used to collect data from 108 large manufacturing firms. Descriptive andinferential statistics were used to analyze data. Findings did not provide sufficient evidenceto support mediation of employee outcomes in the relationship between learningorganization and firm performance. The results contradict previous theoreticalassumptions and empirical studies. However, the study confirmed that learningorganization has a significant influence on employee outcomes. The results present diverseimplications for policy, practice and research. Human resource development practitionerscan use the findings to support the case for implementation of learning organizationinitiatives. Policy makers can use the findings to align learning organization practices andemployee outcomes in the manufacturing sector to achieve superior performance. Thestudy contributes to knowledge in human resource management on the role of employeeoutcomes in the learning organization–performance relationship.