Learning orientations and growth in smaller firms

Organisational learning is often presented as one way in which firms may re spond to increasingly competitive market conditions by managing their knowl edge assets in more effective ways. Although theoretically and conceptually plausible, there is limited empirical evidence, particularly from smaller firms, in support of this view. This study aims to provide some evidence th at links organisational learning and performance. Extant theory suggests th at organisational learning may range from a passive orientation (working wi thin a current paradigm) to an active orientation (questioning a current pa radigm) at both the individual and the collective levels. This study examin es the learning orientations of 300 smaller manufacturing and service firms in terms of an active-passive learning construct. The results suggest that higher-growth manufacturing firms have a more active learning orientation. These firms make greater use of knowledge assets than do their lower growt h counterparts, and this may have important implications for the management of learning in smaller manufacturing firms. (C) 2001 Elsevier Science Ltd. All rights reserved.