Learning organization, organizational innovativeness and the performance of small and medium enterprise in Bangkok, Thailand

This study investigated the relationship between learning organization, organizational innovativeness and the performance of small and medium enterprise (SME) in Bangkok, Thailand. Previous research found the learning
organization and performance of large, medium and small firms to have significant positive relationships. However, little is known about the mediating effects of organizational innovativeness on learning organization and
organizational performance relationships. Therefore, a gap remains in the empirical confirmation. In this study, the independent variables of learning organization included seven observed variables, namely continuous learning,
inquiry and dialogue, team learning, embedded systems, system connection, empowerment and strategic leadership. The dependent variable was organizational performance. Organizational innovativeness acts as the mediator between learning organization constructs and organizational performance. The method of quantitative data collection was conducted by using mail surveys. A response rate of 39.2 per cent was obtained for the analysis of Thai SMEs throughout Bangkok. Structural Equation Modeling (SEM) was used with the Analysis of Moment Structures (AMOS) 18.0 to analyze the data. This study found four dimensions,
namely continuous learning, embedded system, system connection and strategic leadership to have significant impacts on organizational innovativeness. Two dimensions, namely inquiry and dialogue, and team learning were found to have significant impacts on organizational performance. Organizational innovativeness has a significant impact on organizational performance. At the same time, organizational innovativeness also acts as the mediator between four dimensions of learning organization and organizational performance. The findings will assist
SME owners and managers and government policy makers in learning efforts and in fostering innovativeness leading to superior performance.