Impact of Organizational Learning on Organizational Performance: Mediating Effects of Employee Commitment (A study on Public Sector Organizations of Pakistan)

Abstract

In public sector, organizational learning has remained much ignored area. However, during the last two decades, developed countries have taken sustainable initiatives for improving organizational performance through organizational learning and knowledge management. Pakistan is facing multiple performance related problems in public sector organizations. This research thesis is an endeavor to answer the research questions that how the organizational learning impacts the organizational performance directly and indirectly through mediating effect of employee commitment in public sector scientific and technical organizations of Pakistan. Survey was conducted through convenience sampling method. 300 questionnaires were distributed among managerial level employees of 6 organizations in four cities of Pakistan. 260 questionnaires were received back with response rate of 86 %. However 248 complete responses were analyzed to check our hypothesis. Results were analyzed trough partial least square-structural equation model (PLS-SEM) by applying Smart PLS software. The statistical results proved that all hypothesis are true. Hence it was concluded that organizational learning has a significant positive influence on organizational performance with and without mediating effect of employee commitment. Whereas impacts of employee commitment on organizational performance and organizational learning’s on employee commitment, are also proved significantly positive. Research further proposed that larger sample size from other sectors may also be researched with same variables, in future studies. However future studies may also be conducted in different cultures and with different variables to validate the hypothesis.