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PurposeThis empirical study aims to examine the influence of transformational leadership (TL) on organizational innovation (OI) and performance (OP) depending on the level of organizational learning in technological firms.Design/methodology/approachThe research examined a sample of 164 pharmaceutical firms. A global model is formulated and the hypotheses are tested using structural equations.FindingsFirst, the study shows a positive relation between TL and OI, between TL and OP and between OI and OP. Second, the study verifies that these relationships are more strongly reinforced in organizations with high‐organizational learning than in organizations with low levels of organizational learning. Third, the study supports the theoretical arguments made but not demonstrated empirically in the prior literature.Practical implicationsOrganizational learning takes places in a technological community of interaction in which knowledge is created and expands in a constant dynamic between the tacit and the explicit with cognitive and behavioral change. Organizations with greater organizational learning generate a network of learning that will make it easier for them to learn what they need to know and to innovate, enabling the organization to maintain its competitive position as a technological center. This shows that organizational learning improves relations substantially between TL, OI and OP.Originality/valueThis study serves as a reference for fostering organizational learning in technological firms. Organizational learning improves relations among TL, OI and OP. Previous studies, although contributing to the understanding of the direct and indirect relations among leadership, innovation and performance, have not addressed the different effects depending on the level of organizational learning in these technological firms.

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This article combines institutional and resources' arguments to show that the institutional distance between the home and the host country, and the headquarters' financial performance have a relevant impact on the environmental standardization decision in multinational companies. Using a sample of 135 multinational companies in three different industries with headquarters and subsidiaries based in the USA, Canada, Mexico, France, and Spain, we find that a high environmental institutional distance between headquarters' and subsidiaries' countries deters the standardization of environmental practices. On the other hand, high-profit headquarters are willing to standardize their environmental practices, rather than taking advantage of countries with lax environmental protection to undertake more pollution-intensive activities. Finally, we show that headquarters' financial performance also imposes a moderating effect on the relationship between environmental institutional distance between countries and environmental standardization within the multinational company.