Organizational Learning and Innovation as sources of Strategic Fit

Purpose—The main goal of this study is to analyze the role played by organizational learning and innovation in organizations immersed in processes of adaptation and strategic fit in dynamic and turbulent environments. The authors analyze whether organizational learning and innovation act as sources of strategic fit, and whether strategic fit positively affects performance. Design/methodology/approach—We use data from a survey of a representative sample of 204 respondents from European firms active in high-technology sectors (response rate: 10.42%) and structural equation modelling (using the EQS 6.1 program) to implement a transversal study. Finding—The model confirms that organizational learning and the capacity to innovate positively influence managers’ decisions to adapt their organizations to changes in dynamic environments. The achievement of strategic fit, in turn, improves organizational performance. We propose considering the innovation climate as a facilitator of new product and process development, although the innovation climate is not a direct antecedent of fit. Research limitations/implications—This study is limited in that the analysis is cross-sectional and all measures used in the study are based on managers’ perceptions. Practical implications—Managers should create and support an entrepreneurial culture that stresses continuous learning, foster programs to develop abilities, and promote incentives for the development of capabilities that facilitate acceptance of organizational change. Investments in building certain capabilities, such as organizational learning and the capacity to innovate, are strategically justified, especially in turbulent environments. Originality/value—This study is one of the first to investigate the complex interactions among organizational learning, innovation, strategic fit, and performance. The research improves our understanding of the links between strategic fit and performance.