The relationship of learning and memory with organizational performance: The moderating role of turbulence

Extensive research has documented how firms’ learning orientation and memory are related to organizational performance. The objective of this study is to examine the moderating role of turbulence on the relationships between firms’ learning orientation and memory and their organizational performance and innovativeness. The study also provides insight into the differential relationships of firms’ learning orientation and memory to their performance and innovativeness. Using survey data collected from 200 supply management professionals, the results suggest that the extent to which learning and memory are associated with organizational performance is contingent on the level of environmental turbulence. Specifically, under low environmental turbulence, learning orientation and organizational memory appear to be related to performance and innovativeness; however, under high environmental turbulence, only learning orientation is a useful predictor.