Factors Affecting Organisational Learning: The Case of a Medical Centre

Despite many studies that examined the relationship between organisational learning and organisational culture, none examined whether the levels of learning differ within a given organisation and if so, what factors lead to this difference. This article is based upon a study on organisational learning and investigates the relationship among organisational learning, culture and structure. Quantitative research was conduct on organisational learning practices in 17 medical departments of a large hospital in Israel. Three main categories of variables were examined: mapping the learning mechanisms, characterising the organisational culture and examining the organisational structure of various departments. Organisational learning was measured by means of a set of organisational learning mechanisms used in each medical department. Because data were collected from individuals, it was necessary to control and overcome self-report and common method bias. Reverse scoring of items, the use of variation in wording of items and guaranteeing anonymity to respondents helped control common method bias. As expected, it was found that those departments do differ one from the others by the extent to which organisational learning mechanisms are systematically used. The article further presents and discusses the effects of some structural and cultural factors upon levels of organisational learning on those departments. Both the method and the results of this research differ from previous studies of organisational learning; thus, the article sheds a new light on the concept of organisational learning. The study points to the importance and need of organisations to adopt a culture that encourages use of these organisational learning mechanisms to create effective and ongoing organisational learning. Increasing awareness among hospital departments of organisational learning as an essential process for coping with environmental change is also an important practical contribution.

The impact of strong and balanced organizational cultures on firm performance

Purpose

This study aims to investigate the relationship between organizational culture and performance. It concerns the aspects of culture related to culture strength and unbalance and its impact on introvert and extrovert firm performance, controlling for business environment and size.

Design/methodology/approach

Based on the competing values model (CVM), culture strength is measured as the intensity of the culture values driving the company. The cultural unbalance is measured by the sum of absolute deviations of organizational members’ culture perceptions across the four archetypes (adhocracy, clan, hierarchy and market) imposed by CVM from the individual “average” shared cultural value. Evidence is drawn upon a sample of 1,305 employees of 114 Greek firms.

Findings

The findings indicate a strong positive relationship between culture strength and internal performance (innovation competence and human relations) as well as firm outcomes (profitability, growth and reputational assets). On the contrary, culture unbalance exerts a negative influence to market position, growth and innovation competence.

Practical implications

Understanding the nature of the association between culture strength, unbalance and firm performance would enable academics and practitioners to reflect critically on the core culture values which shape employee involvement and formulate leaders’ quality improvement decisions and actions, so as to achieve sustainable competitive advantage at the organizational level.

Originality/value

This research provides supporting empirical evidence for the culture–performance link by identifying the principle culture value characteristics (strength and unbalance), which exert both direct and interaction effects on the introvert and extrovert aspects of firm performance.