The IUP Journal of Knowledge Management
Moderating Role of Industry Type in the Relationship Between Organizational Learning and Organizational Innovation: Is Transformational Leadership a Missing Link?

Article Details
Pub. Date : Jan, 2022
Product Name : The IUP Journal of Knowledge Management
Product Type : Article
Product Code : IJKM010122
Author Name : Kavita Verma, Rayees Farooq and Shahzada Irfan Bashir
Availability : YES
Subject/Domain : Management
Download Format : PDF Format
No. of Pages : 29



The purpose of the study is to analyze the relationship between organizational learning and organizational innovation. It also examines the mediating role of transformational leadership in the relationship between organizational learning and organizational innovation. The paper investigates the moderating role of industry type. The procedure used in the study is a systematic literature review covering organizational learning, organizational innovation, transformational leadership, and industry type from 1969 to 2020. The studies were explored using the keyword search, such as "organizational learning", "organizational innovation", "transformational leadership", and "industry type", from the selected databases, including Emerald, ScienceDirect, EBSCOHost and Taylor & Francis. The study found that organizational learning positively affects organizational innovation. Transformational leadership plays a significant role in improving the organizational learning and organizational innovation relationship. However, industry-specific differences can play a substantial role in shaping the organizational learning-innovation relationship.


The literature on organizational behavior highlights the key role that both innovation (Damanpour, 1991; and Alegre and Chiva, 2008) and organizational learning (Senge, 1990; Huber, 1991; and Baker and Sinkula, 2002) play in gaining sustainable competitive advantage. Previous studies suggest organizational learning as an antecedent of innovation (Nonaka and Takeuchi, 1995; and Baker and Sinkula, 1999). The basic premises of organizational learning are that learning provides new insights to restructure the problems of the organization by affirming the individual learning in the structure and getting consequences for the organization as a whole (Simon, 1969).

Organizational learning, innovation, and transformational leadership are positively related to each other. The interrelationships between organizational learning, innovation, and performance are still scarce and previous studies mainly focus on innovation or analyzes only