Strategic Organizational Learning Capability and Firm Performance: A Case of Tourism Fund in Kenya

Abstract

The current dynamic business environment poses various challenges to majority of organizations globally. In order to survive and thrive in these conditions every organization and/or business needs to possess a certain level of strategic capabilities including ability to learn. The main goal of this study was to establish the link between strategic organizational learning capability and firm performance of Tourism Fund in Kenya. Objectives included determining the influence of employee empowerment, organizational knowledge transfer, organization’s risk taking and organization’s dialogue on firm performance of Tourism Fund in Kenya. The stakeholders in the tourism industry benefits from this research because it enhances understanding of appropriate strategic organizational learning capabilities that will deliver competitive edge as well as increase accomplishment of goals in the various institutions in the sector. The theories of the study comprised resource based view, dynamic capabilities and organizational learning theories. Further, empirical literature relating to the topic was extensively reviewed as directed by the objectives so as to evaluate and compare findings of other researchers. It also presented the research gap useful to future researchers. The study used descriptive and cross sectional research designs. Descriptive design was utilized as it gives deep understanding into the research problem by giving clear description of the study variables. 63 respondents out of 75 targeted population were sampled encompassing managers and operational staff of the Tourism Fund head office in Nairobi. Primary data was the key source of data in this study collected through questionnaires which were distributed and later collected after they were completed. The items in questionnaire were designed in a Likert system measured in five point scale which accordingly ensured that all respondents received similar set of questions. The study made use of descriptive statistics as well as inferential statistics for data analysis. Linear regression model was applied in inferential analysis. Elaborated narrations and descriptions were used to present results in addition to other formats including tables, charts and graphical presentations. Inferential analysis results showed a very strong positive correlation between the predictors and dependent variable. It was clear that all the elements of strategic organizational learning capabilities studied have a positive and significant influence on firm performance as shown by the positive values of all the regression estimates in the regression model used. Also, the regression coefficients p-values were less than 0.05 indicating a significant association between the dependent and independent variables. From regression results knowledge transfer and organization’s dialogue were the key predictors of strategic organizational learning capability components that greatly influenced firm performance. Therefore, the study recommends that organizations in the tourism industry should capitalize on developing a culture of learning in their entire organizations, empower their employees, institute knowledge creation and transfer systems throughout functional boundaries, encourage and facilitate risk taking and support dialoging in their organizations so as to enhance their performance.