The Effect of Organisational Learning on Business Performance of SMMES in the Western Region of Ghana

Abstract

Research on Organisational Learning has been up-surging in recent years in management literature. However, empirical research on how it impacts small, micro and medium enterprises' (SMMEs') performance still needs to be researched, particularly in Ghana. This study aimed to investigate the effect of Organizational Learning in fostering Business Performance of SMMEs in the Western Region of Ghana. The study employed a positivist research approach, which made use of quantitative methodology. The data was sourced via the administration of a structured questionnaire to 374 owners/managers of SMMEs from registered SMMEs as captured by the National Board of Small-Scale Industries (NBSSI) in the Western Region of Ghana using a convenience sampling method. Data analysis involved statistical techniques such as regression analysis to ascertain the relationship between organisational learning and business performance. Out of the total number of the targeted sample, 350 respondents were retrieved successfully. The findings revealed that owners/managers of SMMEs lacked the managerial skills, whilst employees lacked the interpersonal skills to participate meaningfully in OL. Also, resistance to change was revealed as another constraint to organisational learning. The study found that approaches such as training, cooperation, consultancy engagements, inquiry, and dialogue increase learning processes of knowledge acquisition, sharing, interpretation, and storage, which improves sustainable performance. This study shows the beneficial effects of organisational learning on SMMEs' business performance, thereby informing strategic decision-making and policy formulation to promote SMME development in Ghana.

Keywords

• organisational learning
• SMMEs performance
• financial performance
• operational performance