Business Strategy and Maximization of Profitability through Organizational Learning: A PLS-SEM Approach

Abstract

The business strategy of an organization is reflected during events like acquisitions and mergers which necessitates skills auditing to check the learnability of its human capital in order to determine whether the available manpower can cope up with the new challenges to be brought by the change. The ultimate goal of business strategy is value creation, so it must also evolve such a learning culture in the organization that works towards objectives of profit maximization and long term sustainability. For this purpose, a mere HR strategy of individual training at employee level will not suffice; organizations must unequivocally develop a learning strategy at organizational level that can support a value creation culture leading to profitability.    The data was collected through a closed ended questionnaire administered on randomly selected respondents from 5 different organizations and analyzed with SPSS and Smart PLS softwares. The findings of the study revealed that learning at organizational level has gained more strategic importance than the conventional HR strategy of individual learning. In the end, this study recommends that learning must be given more strategic importance and should have a holistic approach encompassing the whole organization and must not be confined to one of the HR practices.

Keywords: business strategy, profitability, HR based training