Organizational Innovation Based on Systems Thinking: Learning Organization

Organizational innovation generally determines the effectiveness of technological innovation to some extends. We divide the organizational innovation into two types: one focuses on human-beings and the cultural factors within organizations and the other on the innovation of organizational structure and strategy. This paper attaches more attention onto the former type and discusses the theory of organizational learning and learning organization and also, the systems thinking methodology is introduced. And a system dynamics model of learning organization is proposed in the paper. Although no specific parameter for quantitative analysis is contained in the model, the flow chart clearly reflects the entire process and key factors of organizational learning. It is helpful to establish and evaluate a learning organization to achieve the organizational innovation.