Understanding the Value of Organizational Learning: The Unutilized Internal Resource

This paper is the result of research performed for the purpose of designing a service that consults small and medium enterprises in Bulgaria, with potential enlarging the scope to other countries in the region, about approaches and practical steps to their organizational development. The applied research methodology was online standardized questionnaire administered among the companies to register their use (or lack thereof) of recognized OD methods. The research results disclosed a considerable gap between the world practice and the current situation of the target group. A major deficit of the Bulgarian SME is the missing link between the strategic goals, where they exist, and the actual performed activities, in particular in terms of management. The main cause we have identified for that is the missing practice of organizational learning and knowledge management. The paper examines two research questions: what would be the appropriate paradigm to introduce organizational learning for results and what factors will influence the choice. The first part makes a brief overview of existing OD models and their successes and penetration into the regular practice of SME in Europe and worldwide. The second part describes the current situation of organizational development among the target group of Bulgarian SME and analyses the reasons for this state of affairs. The third part explores the research questions and provides evidence-based options.