Organizational Learning Culture and Firm Performance: The Mediating Role of Learning Agility

Abstract

This article delves into the critical role of learning agility in the Indian context. It specifically explores how an organizational learning culture (OLCu) fosters an employee’s ability to learn and adapt—their learning agility—which ultimately translates into improved firm performance. Employing a cross-sectional research design, the study gathers data through self-administered surveys from over 313 employees working in hardware service firms within the Indian IT sector. Path analysis is then utilized to analyse the collected data and unveil the underlying relationships. The findings unveil a fascinating interplay between OLCu, learning agility and firm performance. The study suggests that OLCu acts as a catalyst, fostering a work environment that encourages continuous learning and development. This, in turn, fosters employee learning agility. However, the research also reveals that learning agility plays a mediating role, meaning it partially explains the effect of OLCu on firm performance. In simpler terms, while a strong OLCu is crucial, it is the employee’s enhanced learning agility that truly unlocks the door to improved firm performance. This research offers valuable insights that can empower organizations in the Indian IT landscape. By nurturing a vibrant OLCu, companies can equip their employees with the tools and support they need to become more learning agile. This agility translates into a workforce that can readily adapt to new technologies, evolving customer demands, and a dynamic business environment. Consequently, firms can expect greater innovation, improved service delivery, and, ultimately, a significant boost in overall performance. This research also contributes significantly to the existing body of knowledge. It adds a fresh perspective to organizational learning theory by highlighting the crucial role of learning agility as a bridge between OLCu and firm performance, particularly in the Indian IT sector.