Learning and Knowledge Creation in an Organisation

Organisational learning (OL) is associated with the organisational processes related to the acquisition and interpretation of information, direct learning from organisation's own experience, and learning from other organisations. Research associates OL also with learning in terms of changing behaviour, including trial and error learning and experimental learning. On the other hand, quite many studies in the conceptualisation of OL do not include new knowledge creation processes. In spite of this, some authors recognise OL also as creation of new insights, experimentation, thinking outside the traditional frames and looking at things from different angles. In monograph a model of organisational learning (OL) is suggested consisting of four connected constructs related to the processes of learning and knowledge creation, and organisational performance. OL processes relate to (1) creation of new knowledge, (2) information acquisition through transfer of information between the environment and organisation, (3) interpretation of information within an organisation, and (4) application of information through cognitive and behavioural changes. Organisational performance relates to both - financial and non-financial performance. With the use of structural equation modelling we confirm strong positive relationships between constructs of information acquisition, knowledge creation and cognitive and behavioural changes, all together leading to changes in organisational performance. We also recognise information interpretation as a process positively related to knowledge creation but on the other hand related neither to cognitive and behavioural changes nor organisational performance. The findings explain OL from the viewpoints of single and double loop learning and emphasise the importance of introducing both of them in the organisation. The key message we give to the managers is that for the organisational success it is not enough to establish processes and systems for acquiring the information from the environment, to exchange information with business partners, to acquire information about new products and services in the industry, or to search for advice of external experts, but it is also necessary to establish processes, which enable continuous experimenting for new products and services, brainstorming, testing new ways of doing things, and continuously evaluating experiments and new ideas.