Organizational Learning, Quality Strategy and Perceived Firm Performance of Textile Firms

Abstract

This study employs organizational learning theory and quality strategy theory to formulate a new organizational learning-quality strategy- that can be used to enhance firm performance of the firms of textile sector listed at Pakistan Stock exchange. This research explores the moderating role of quality strategy in the relation between organizational learning and perceived firm performance. This article also explores the effect of organizational learning on quality strategy and perceived firm performance, as well as the impact of quality strategy on perceived firm performance. The model was tested using the experience of 300 Pakistani textile firms operating in a variety of host markets. To test the moderating role, process developed by Hayes was used. The empirical results indicate that perceived firm performance is significantly affected by organizational learning (explorative and exploitative learning) and quality strategy. Furthermore, the results confirm that the explorative, exploitative learning and quality strategy have a positive relationship with perceived firm performance and quality strategy moderates the relationship between organizational learning and perceived firm performance. The outcomes of this article provide a new direction for future research regarding organizational learning, quality strategy and perceived firm performance.