Linking Learning Capacity and Business Performance : A Research and Empirical Assessment

There has been little research that includes reliable deductions about the influence of knowledge and its associated learning processes on business performance. For this reason, the main objective of the present study is to empirically explore the link between learning flows in organizations, resulting knowledge stocks, and business performance evaluated in both financial and non-financial terms. Using data from 111 companies, we conduct our research through a structural equation modeling. In doing so, we establish a measurement model for the main constructs and examine the paths between them. Results show the positive link existing between: (i) learning flows and knowledge stocks; (ii) knowledge stocks and non-financial performance; and (iii) non-financial performance and financial performance