Multidimensional Learning Organization and Its Impact on Firm Performance in Mainland China

This study examines the construct validity of the learning organization concept and its influence upon firm performance in mainland China. Based on the theoretical framework proposed by Watkins and Marsick, the results showed that the learning organization in the Chinese context consisted of four dimensions as following: support individual learning for achieving collective vision, build communication and innovation mechanism, encourage team learning and collaboration, and advocate system thinking and strategic leadership. A balanced scorecard-based performance evaluation questionnaire was developed. Regression analyses were used to examine the relationship between learning organization and firm performance. The results indicate that learning organization has positive influence on firm performance. The study proves the necessity to construct learning organization for the purpose of improving the enterprise performance.