Effect of Organizational Learning on Organizational Performance of Food Manufacturing Firms in Nairobi County, Kenya

Abstract

The purpose of the study is to examine the effect of organizational learning on organizational performance in food manufacturing firms in Nairobi County Kenya. The study is guided by the Knowledge Based Theory which considers knowledge as a strategically significant resource of the firm. In recent years, there has been an amplified interest on the role of organizational learning in managing knowledge assets through defining the processes of knowledge acquisition, dissemination, transfer and storage for competitive advantage and superior performance. The study adopted correlational survey research design with a target population of 87 food manufacturing firms from Nairobi County. The study used disproportionate stratified random sampling method to identify a sample that was representative of the 7 sub-sectors of the food manufacturing industry. A sample of 71 firms was used in the study. Primary data was collected using close-ended questionnaires which were administered to executive officers in the firms. The questionnaire was used to get both qualitative and quantitative data. To summarize the data, descriptive statistics such as mean and standard deviation were used. To examine the effect of organizational learning on organizational performance, multiple regression analysis was used. The study results revealed that there was a positive and significant relationship between organizational learning and organizational performance. The study concluded that while information distribution needs to be the key vision of organizational learning goals, all organizational learning dimensions should be combined for a greater increase on organizational performance.

Keywords: Organizational Learning, Organizational Performance, Knowledge Based Theory, Manufacturing Sector, Kenya