dc.description.abstract |
Organizational culture has been identified as an effective factor that determines how
things get done in an organization. It is intangible, provides direction and aligns to the business
vision and mission, helping decision making, prioritizing activities and defining accountability
thus becoming the most important word in the business boardroom. Organizational learning is
the process of creating, retaining, and transferring knowledge within an organization and an
organization improves over time as it gains experience. From this experience, an organization is
able to create knowledge. Organizational learning capability is important to develop other
capabilities. A learning organization is the term given to an organization or a firm that facilitates
the learning of its members and continuously transforms itself. A firm need to accumulate past
experience and transform individual knowledge into organizational knowledge and then with the
aid of continuous learning the firm should develop competence required to adopt to
environmental changes. Organizational performance comprises the actual output of results of an
organization as measured against its intended outputs. Listed commercial organizations at the
stock exchange trade for profits and performance indicates level of profitability. Organizational
learning as a dynamic capability helps organizations in coordinating internal and external
information to sustain their knowledge management systems and gain competitive advantage.
Cultural values then impact what might be expected actions moderating performance of these
organizations. Despite the value of these interactions, in business, there are few empirical studies
that have tested the underlying assumptions of the influence of culture on the dynamic capability
organizational learning. The aim of this study was to determine the moderating effect of
organizational culture on the relationship between dynamic capability organizational learning,
on organizational performance in commercial organizations listed in Nairobi securities exchange.
A cross sectional research design was adopted, where the target population of the sixty-seven
listed companies was to be focused making it a census survey. Data was collected using a 5 Likert
–scale questionnaire, data was analyzed using descriptive and inferential statistics using multiple
linear regression. The study indicated that organizational learning capability had a statistically
significant influence on organizational performance (β=0.348, p=.000). Organizational culture
had a moderating effect on the relationship between organizational learning capability and
performance (∆R2=0.069, p=.000). It is therefore recommended that organizational learning
while important in managerial activities had an inverse relationship with organizational
performance but the results were not significant, while entrepreneurial culture should be
enhanced. |
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