Cognition, culture and competition : an empirical test of the learning organization in the Malaysian

Abstract

This research was conducted to examine the principal assumption that organizational learning leads to increased organizational performance and explores the role of organizational learning, culture and focused learning on organizational performance. This study is based on convenience sampling of Grade 7 CIDB (Construction Industries Development Board) registered Malaysian construction companies in the Klang Valley and adopts a structural equation methodology as by the previous researcher. Scales and constructs used to measure the variables are adopted from previous research. The results suggest that organizations with cooperative culture are more likely to achieve competitive advantage and have a positive effect on organizational performance. However, the results did not support the cognitive dimension of double-loop learning nor the behavioral dimension of single-loop learning. The effect of competitive forces means that organizational learning focused on efficiency and concentration leads to competitive advantage and has a positive effect on organizational performance in the Malaysian construction industry. Limitations of this research are to be noted. Firstly, the assumption that executives and managers can assess accurately the levels of organizational learning. Secondly, generalizability of findings is limited as sample is from construction companies in the Klang Valley only and thirdly, the length of the Questionnaire may have resulted in measurement error. Future research should include all registered companies in order to enhance and increase the generalizability of the findings.