Linking Learning Capacity and Business Performance: A Research and Empirical Assessment

Abstract

There has been little research that includes reliable deductions about the influence of knowledge and its associ ated learning processes on business performance. For this reason, the m ain objective of the present study is to empirically explore the link between learning flows in organizations, resulting knowledge stocks, and business perform ance evaluated in both financial and non-financial term s. Using data from 111 com panies, we conduct our research through a struct ural equation modeling. In doing so, we establish a measurement model for the main constructs and examine the paths between them. Results show the positive link existing between: (i) learning flows and knowledge stocks; (ii) knowledge stocks and nonfinancial performance; and (iii) non-financial performance and financial performance.