A new model for learning
organizations
Helen Shipton
Director, Aston Centre for Human Resources
Aston Business School
I will reflect on:
What are learning organizations?
Are (some) MSBs learning organizations?
Evidence from a global study
Outline research proposal
A new model for learning organizations?
A learning organisation is an organisation that promotes
management tools concerned with the improvement of
individual and organisational learning OECD, 2010
Pedler, Burgoyne & Boydell (1999) emphasise building
internal capabilities (sharing information, breaking down
hierarchical boundaries) as well as external engagement
A new model for learning organizations?
Growing awareness of the role of informal learningInteractive informal learning (e.g. knowledge sharing,
innovative behaviours)
Individual learning activities (reflection, seeking and
providing feedback to others, professional activities)
Building the skills for external interface seen as key for
organizational performance (e.g. Kang et al., 2007)
Learning within SMEs
Tendency towards informal, rather than formal, learning,
with an emphasis of learning on-the-job, mentoring,
coaching and team-working
Based on internal networks that are often close and aligned
with local communities
Looking outside esp. competing internationally seems more
problematic
(Easy to over-simplify- a complex and multi-faceted sector)
Are (some) MSBs learning organizations?
MSBs are a significant driver for economic output
and employment (1.4% of total no. of companies, accounting
for 31.8% of private sector GDP)
They also appear better at weathering economic
downturn, growing employment in UK 2008- 2010
when larger companies cut jobs
Appear to have aptitude for global expansion while
remaining close to local communities
However, the category faces challenges:
MSBs esp. in UK are less likely than their larger
counterparts to export internationally (G,E. Report, 2012)
Leadership skills are generally less developed i.e. a
tendency to rely on existing networks and a lack of
strategic ambition (BIS, 2012)
There is evidence of reduced spending within the
sector on R & D (i.e. less emphasis on innovation)
(CBI, 2011)
Research challenges
1. What is the role of a strong external interface in
combination with ‘best practice’ (formal) HRM in
fostering innovation and performance in MSBs?
2. How might informal learning (both interactive
and individual) within MSBs be enhanced to promote
innovation and performance?
1. Global study
‘Is there a global model of learning organizations? An
empirical, cross-nation study’
Helen Shipton
Aston Business School
Qin Zhou
York School of Management
&
Erik Mooi
Aston Business School
Accepted- International Journal of Human Resource
Management
Our study
We examined the antecedents of innovation and
performance for organizations with 20 plus employees
(5909 organizations)
The data were drawn from the ‘Marketing in the 21st
century’ dataset (collected 2006- 7)
spans 14 countries: Australia, Austria, Brazil, Mainland
China, Finland, Germany, Greece, Hong Kong1 (SAR),
Hungary, Ireland, the Netherlands, New Zealand, Poland,
Slovenia, the United Kingdom, and the United States
Purpose of study
To assess what people management strategiesespecially those linked with learning- promote innovation
and performance
To ascertain the model’s applicability across divergent
national contexts.
Our model of the learning organization embraces:
commitment to learning and questioning
behaviours (e.g. in policy statements).
whether there is the opportunity for learning and
questioning activities to be appropriately directed,
i.e. taking account of customer needs.
We suggest that learning organizations emerge
following close attention to three factors:
customer-facing remit
developmental orientation
HRM focus
The model represents an intangible (and
unobservable) strategic ‘second order’ resource (Hult
et al., 2002).
Learning organization and its impact on organizational
outcomes
First order
factors
2nd order
latent factor
Mediator
Financial
performance
Development
orientation
Customer-facing remit
HRM focus
Learning
organization
Outcome variables
Innovation
Sustained
competitive
advantage
Developmental orientation (Sinkula et al., 1997). e.g.
A company’s ability to learn is the key for competitive
advantage
Learning is key to improving actions and performance
outcomes
HRM focus (West et al. 2006) e.g.
We have regular staff appraisals where we discuss learning
needs
Customer-facing remit (Narver and Slater (1990) e.g.
Our commitment to serving customer needs is closely
monitored
INNOVATION (West and Farr, 1990)
We are more innovative than our competitors in deciding
what methods to pursue in achieving our targets and
objectives
We are more innovative than our competitors in initiating
new procedures or systems’.
Also measured sustained competitive performance and
financial performance using established scales e.g. ‘Our
competitive advantage is difficult for competitors to copy because it uses
only resources we have access to.’
Hypothesis 1: The learning organization conceptualised as a
second order construct arises from three inseparable
components: developmental orientation, HRM focus and
customer-facing remit.
Hypothesis 2: Innovation mediates the relationship between the
learning organization and organizational performance (indicated
by sustained competitive advantage and financial performance)
Setting up the study:
In each country, an academic expert managed activities
Responses based on chief marketing officer (marketing/ sales
director) OR chief executive officer
Follow up survey was sent after two weeks
Based on established business directory (e.g. Dun and Bradstreet
Organizations were stratified into small (20-99 employees),
medium (100-499 employees), and large (500 plus)
Sampled companies from banking, telecommunications,
information technology (IT), consulting, commercial, aerospace,
pharmaceutical production/research and development, railway
engineering, automotive production, energy, oil, minerals and
shipping.
Results
Developmental orientation was a significant first-order component
of the learning organization -loading values from .44 to .76
(p<.001)
HRM focus was a second significant first-order component of the
LO with loadings ranging from .55 to .85 (p<.001).
Customer- facing remit was also a significant first-order
component of the LO with loading values ranging from .44 to .76
(p<.001).
Hypothesis 1 was supported
Results
The fully mediated model received support with the samples from
11 countries (i.e. UK, Ireland, Austria, Finland, New Zealand,
Australia, Hungary, Hong Kong, China, Slovenia, and Greece).
For the samples from Germany and the US, the partially mediated
model A (with a direct path from the learning organization to
financial performance) showed a better fit than other models
For the sample from Brazil, the partially mediated model B (with a
direct path from the learning organization to sustained competitive
success) showed a better fit than other models.
Hypothesis 2 received partial support
Discussion
We have developed and tested a model to represent the learning
organization based on a sample of 5909 organizations drawn
from fourteen countries across the globe
Our model presents the learning organization as a second order
construct, arising from three inseparable elements, including the
extent of integration with the customer.
Demonstrates how innovation and performance may be
encouraged across a wide range of different companies and
countries with distinctive cultures and at various stages of
economic development
1. What is the role of a strong external interface in combination
with ‘best practice’ (formal) HRM in fostering innovation and
performance in MSBs?
2. How might informal learning within MSBs be enhanced to
promote innovation and performance?
Promoting innovative behaviour in Australian
Medium Sized Businesses
Karin Sanders
Tim Bednall
Chris Jackson
Australian School of Business
University of New South Wales
&
Helen Shipton
Aston Business School
Promoting innovative behaviour in Australian
Medium Sized Businesses
DETAILS OF A RESEARCH PROPOSAL RECENTLY
SUBMITTED WILL BE SHARED IN THE
PRESENTATION
Future research considerations:
Do MSBs constitute a theoretically interesting and
distinctive group relative to smaller and larger
counterparts?
If and how our understanding of learning organizations
might provide insight for MSBs
Are there crucial HR and customer orientations that
provide the basis for innovation and performance?
How best to build leadership capability for learning,
innovation and performance in MSBs
Making contact and gaining access
‘Leading from the middle’ report (2012)
Top 10 Challenges for MSBs (in order of importance)
1. Attracting employees with the right set of skills
2. Finding talent with the right skill set in the local area
3. Retaining talented employees
4. Attracting top managerial talent
5. Ensuring that we have sufficient funds to take advantage of
opportunities that may arise
6. Keeping up with changing regulation
7. Having sufficient working capital
8. Having predictable cash flow
9. Being able to manage our debt levels
10. Being able to secure capital in foreign markets