Organizational learning and performance: Relationship between the dynamic and the operational capabilities of the firm

This paper analyzes the relationship between organizational learning mechanisms, normally regarded as dynamic capabilities, and the operational flexibility of the firm, considered as an operational capability, within the context of the measurement of firm performance. Organizational learning is a dynamic process which enables the firm to adapt to changing environments, so making it easier for it to change established behaviour patterns and routines. This dynamic capability is therefore directly related to organizational routines and the operational processes that underlie these routines, and the objective of this study is to analyze this relationship and its effect on firm performance. To this end, we carried out an empirical study to test the relationships proposed in our model. Our most important findings were firstly that there is a link between the dynamic and the operational capabilities of the firm, and secondly that the development of dynamic capabilities will result in improved firm performance.