Organizational learning capability and its impact on new product and business performance through organizational innovativeness

The purpose of this study is to develop a measurement scale that aims to assess firm's organizational learning capability which is based on the facilitating factors for learning in organizational learning and learning organizations literature. The study further investigate the impacts of organizational learning capability on organizational innovativeness and organizational learning capabilites' effects on new product and firm performances. The data were gathered from a total of 285 managers who are working as an upper and middle level managerial positions and project and team leaders in 6 companies operating in Manisa Industrial Zone. These companies are listed in Turkey's biggest first 500 and second 500 industrial enterprises list operating in Manisa Industrial Zone. Two hundred fourty six responses obtained from 3 firms which are listed in top 500 biggest firms list and 39 responses collected from 3 firms that are listed in second biggest 500 fims list. Respondents' ages varies from 25 to 65. The distribution of managers in departments are 18 marketing, 37 accounting, 41 import-export, 17 human resources, 29 R&D, 103 production and 40 other departments which consists quality assurance and product based project departments. In this study, a research model was developed to investigate the impacts of organizational learning capability on organizational innovativeness and the effects of organizational learning capabilities on new product and firm performances through organizational innovativeness. In the research, Organizational Learning Capability Questionnaire was used to assess organizational learning capability. Organizational learning capability scale was developed by the researcher based on Goh and Richards (1997); Jerez-Gomez, Cespedes-Lorente and Valle-Cabrera (2005) and Chiva, Alegre and Lapiedra's (2007) studies. Organizational Innovativeness Scale was used in the evaluation of firms' innovative activities which was developed by Wang and Ahmed (2004). In the evaluation of firms' new product performance, New Product Performance Scale which developed by Danneels ve Kleinschmidt (2001) was used. Firms' performance was evaluated by Firm Performance Scale which was proposed by Akgün, İnce, İmamoğlu, Keskin ve Kocoğlu (2014). In analysis, SPSS 20.0 package program was used for descriptive statistics, One-way Anova and Dunnet's T3 statistics of Post Hoc tests and LISREL 8.51 packet program was used for confirmatory factor analysis, path analysis and Structural Equation Modelling (SEM). The organizational learning capability concepts includes 9 dimensions (1) openness and interaction with the external environment, (2) experimentation, (3) managerial commitment, (4) participative decision making, (5) leadership commitment and empowerment, (6) clarity of purpose and mission, (7) knowledge transfer, (8) dialog, (9) system perspective. The analysis reveals that all dimensions constitute one factor model called organizational learning capability. In sum, organizational learning capability scale consists of 29 items and 10 factors. The results indicate that, organizational learning capability has a direct effect on organizational innovativeness and new product performance; new product performance influences firm performance. Further, organizational learning capability has an effect on new product and firm performance through organizational innovativeness. In consequence of these results, firms' performance and new product performance increases depend on the increases of organizational innovativeness by means of organizational learning capability. Statistically significant differences were found according to firms' departments and new product types for organizational learning capability, organizational innovativeness, new product and firm performance. Organizational learning capability and it's sub factors of experimentation, managerial commitment, participative decision making and knowledge transfer were differed according to departments worked. Statistically significant differences were also found in organizational innovativeness and it's sub factors of individual-behavioral innovation and product innovation among departments. Firm performance were not differed according to new product types offered to the market but new product performance was influenced by that offer. Keywords: Organizational learning capability, organizational innovativeness, firm performance, new product performance.