Abstract: The performance of listed firms is critical to economic growth and development. This however has not been the case to some of the listed firms at Nairobi Security Exchange (NSE) where firms have been recording losses and declined profit margins. This is alarming to both investors and the economy at large where declining firm performance signifies loss in revenues for the investors, job losses for employees, reduced foreign direct investments (FDI) and reduced tax collections for the government. While tough economic conditions and volatile operating environment have been blamed for the poor performance of firms, it raises questions on why some of the listed firms are still doing better hence the need to understand the underlying internal factors. Organizational learning has been termed as a key aspect in determining the performance of firms in the modern business World. Organizational learning is the process of aligning the right skills, competencies, knowledge and capabilities to enable the organizations to cope with the modern dynamics and steer performance. This study sought to establish the relationship between organizational learning and performance of listed firms at NSE. Descriptive research design was used while the 64 listed firms at NSE were targeted. A census was applied where all the firms were surveyed while 4 employees at management level were purposively selected from every listed firm. The main data collection instrument for primary data was a structured questionnaire. Data analysis was done using descriptive statistics where frequencies, percentages mean and standard deviation were computed based on the research questions. The findings revealed that organizational learning significantly and positively influenced firm performance. The study concluded that organizational learning through group level, individual level and organizational level played a critical role in steering the performance of the listed firms. The study recommended that firm managers should take effectively embrace organizational learning through employee training and encouraging teamwork as a firm performance strategy.
Keywords: Organizational learning, organizational performance, listed firms, Nairobi Securities Exchange.
Title: INFLUENCE OF ORGANIZATIONAL LEARNING ON PERFORMANCE OF FIRMS LISTED AT THE NAIROBI SECURITIES EXCHANGE
Author: Ndungu Samuel Machiri
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Research Publish Journals
