IMPACT OF LEARNING ORIENTATION ON COMPANY PERFORMANCE: MEDIATING ROLE OF INNOVATIVENESS

Abstract

Ensuring a workforce is up to date on the latest trends in a rapidly changing business environment is one of the main challenges facing modern companies. To achieve long-term profitability and encourage innovation, they tend to constantly improve employees’ knowledge and skills. This paper aims to identify the impact of learning orientation on company performance and to test the mediating role of innovativeness in this relationship. The empirical research was conducted on a sample of 79 companies in different industries in the Republic of Serbia. Descriptive statistical analysis, correlation, and regression analysis were applied to the data collected. The research results indicate that learning orientation significantly and positively affects performance and innovativeness in Serbian companies. In addition, the findings show that firm innovativeness partially mediates the relationship between learning orientation and performance, i.e., learning orientation leads to better company performance through increased innovation in all business aspects. The paper contributes to identifying practical implications for managers, pointing out the importance of creating a learning environment and employees´ innovative behaviour as a basis for achieving better business outcomes. Therefore, managers should take a proactive approach to their human resources, providing them with opportunities to acquire new knowledge and skills and develop innovative ideas.