Learning behavior, strategy and performance : a structural equation modeling study

Abstract

The theme for this study is organisational learning and strategy, and more specifically about the relationship between learning behaviour, strategy and performance. There were to research questions. The first is regarding the relationship between learning behaviour and performance, with the research question being: Does increased use of learning behaviour in a business simulation have an impact on the overall performance in the business simulation? The second research question is regarding the relationship between learning behaviour, strategy and performance, with strategy divided in two variables, quality factors and implementation factors. The research question is: Does increased use of learning behaviour increase the use of both implementation factors and quality factors? And will an increased level of implementation factors and quality factors lead to improved performance? Based on theory and research from among others Argyris and Schön (1996), Amy Edmondson (1999), Hanne Iversen (2006) and Henri Mintzberg (2000, 2007), two theoretical models was developed. The models was tested empirically using Structural Equation Modelling, on a sample of mid level managers participating in a strategy simulation. After modifying the second model, the empirical findings are in accordance with the hypothesised models, and the relationship between learning behaviour and performance, as well as learning behaviour, strategy and performance is confirmed in the simulation.