The purpose of this paper is to investigate the relationships between three quality management (QM) practices, leadership, people focus, and process management practices and organizational learning (OL) activities and business performance in Korean manufacturing businesses.
The study draws on 204 responses to a survey of Korean manufacturing companies listed on the Korea Composite Stock Price Index to test nine hypotheses with structural equation modeling (SEM).
The results from SEM show that leadership practices have a significant effect on people focus and process management practices, and that the three QM practices jointly influence OL. However, leadership, people focus, and process management practices do not have direct associations with business performance, but rather show statistically influence only via OL activities. The findings verify that OL has a mediating role in QM practices and business performance as a crucial resource that determines a firm’s competitive advantage.
An important implication of this study’s findings for managers or QM professionals is that learning takes place at multiple levels and is a crucial resource that determines a firm’s competitive advantage, bridging quality and business outcomes.
