Relationship between Implementation of the Learning Organization Concept and the Business Results in Small Croatian Enterprises

The concept of ‘learning organization’ has become widespread in modern organizations. However, it is mostly present (and researched) in large enterprises. This paper will be based on a recent empirical research carried on during 2014 on a sample of 75 small Croatian enterprises. The primary goal of this research was to investigate extent, models, and the level of implementation of elements of ‘learning organization’ concept knowledge among Croatian small and micro enterprises. In the second step, the research aimed to investigate relationship between implementation of the learning organization concept and the business results in small Croatian enterprises. In that purpose, two hypotheses had been tested: H1: Implementation of the learning organization concept influences positively business results of small enterprises, and H2: Implementation of the learning organization concept has stronger positive effects on business results of small enterprises that are doing business in more complex, dynamic and uncertain environment. Results of empirical analysis have confirmed both hypotheses; they have shown that implementation of (elements of) learning organization concept positively influences business results of small and micro enterprises in general and that influence is significantly stronger for those enterprises that are doing business in unfavorable business environment.