Organisational learning is increasingly being mentioned in the literature as a mechanism for assisting the market performance of small firms. There exists, however, limited empirical evidence on either the benefits conferred by organisational learning and the learning systems utilised to manage the process. A survey of small UK manufacturing firms was undertaken to acquire data on whether a relationship exists between learning style and the competencies exhibited by organisations. The survey also sought to determine the nature of learning systems used by small manufacturing firms. The results suggest that as firms move from a lower‐level to a higher‐level learning style, this is accompanied by competence enhancement that can contribute to improving organisational capability. It also appears that a higher‐level learning style is accompanied by the adoption of a more formalised learning system inside the organisation. The implications of these findings are discussed and proposals presented on the needs for further research.

In both literature and policy documents, small and medium‐size enterprises (SMEs) are being advised to form networks as a route for acquiring the knowledge required to survive in rapidly changing and/or highly competitive markets. There is, however, only limited anecdotal evidence of the positive contribution that networks are a way of upgrading organisational learning and thereby enhancing the performance of small firms. Additionally, there appears to be minimal guidance available on how small firms might exploit networks as a route for improving their capabilities to acquire and utilise knowledge to enhance future performance. To acquire additional empirical data on these issues, a survey was undertaken to examine the learning style of small UK manufacturing firms participating in some form of cooperative relationship with other members of their market supply chain. Learning style in the survey was measured by seeking response to a scale which permits assessment of the degree to which the respondent firm is exhibiting a single‐ versus double‐loop learning style. A survey of small firms advisers to gain their view of the organisational competency was measured using a scale that identifies those areas of capability that have significant impact on the performance of small firms. Results indicate that firms involved in networks tend to adopt a double‐loop (or higher‐order) learning style, whereas non‐network firms mainly appear to be autonomous single‐loop learners. When compared with non‐network firms, respondent organisations who participate in networks tend to have a better developed, more formalised knowledge management system. Furthermore, small firm advisers perceive that the creation of a formalised knowledge management system is reflected by such firms exhibiting a higher level of organisational competence across some of the areas of marketing, HRM and information management. The implications of these findings are discussed in relation to how small firms might be assisted in becoming involved in learning networks as a path for improving their knowledge management capabilities. Some qualitative, illustrative examples of small business learning networks are provided. Additionally, proposals are presented on the need for further research.

I. CHASTON, B. BADGER, T. MAN(JI ES and E. Sadler-Smith are with the Group Organisational Learning and Development Centre, Plymouth Business School, University of Plymouth, England. Organisational learning is increasingly being mentioned in the literature as a critical element for optimising the ability of small firms to respond to changing imiarket opportunities. Various researchers have validated the relationiship that exists between organisational learning and firms exhibiting a strong market orientation. Other research has shown that organisational learning is an important antecedent for the effective management of innovation. There exists, however, limited empirical evidence in the small firms literature on the relative importance of double versus single-loop learning and the role of the learning svstemns required to support the learning process. The Inteirnet providles ail excellent research opportuinity to assess empirically the possible relation s}lips that may exist between learninig style, lecainlg systems and revisions in operational practices. A survey of small UK mantufactur-inig firnms was undclertakein to acquire data on learniing stvle and(learning systems. The resuilts suggest that. involvemien-t in Interniet technology vsill be greater among firm-ls exhibitinig a double-loop learniing style. No stncdi r-elationship was found in the case of the degree to which small firm-ls have established formalised learning systems. The implications of these findings in relation to small firms involvement in the Internet and e-commerce are discussed. Proposals are presented on the neecd for further research.

Success in cyberspace markets will be influenced by whether firms can develop unique organisational processes as the basis for supporting market performance.This perspective suggests that the adoption of a "resource-based" view of the firm may provide the basis for assessing the ability of an organisation to exploit the Internet as a path through which to enhance market performance. A competency model has been developed to define areas of capability that may influence the execution of an Internet marketing strategy. Proposed competencies include positioning, funding, innovation, workforce management, productivity, service quality and information management.Following qualitative validation of the model, a survey was undertaken amongst small UK manufacturing firms. Results of the survey indicate that the identified competencies within the model are perceived as critical for achieving market performance and that firms which exhibit these key competencies are able to achieve a higher level of sales growth.

No abstract