The effects of learning organization practices on organizational commitment and effectiveness for small and medium-sized enterprises in Taiwan.

Abstract

This study explored the effects of learning organization practices on organizational commitment and effectiveness in Taiwanese small and medium-sized enterprises (SMEs). The research question is, "What are the effects of learning organization practices on organizational commitment and organizational effectiveness for SMEs in Taiwan?" A framework for three hypotheses were explored: 1) Learning organization practices have a positive effect on perceived organizational commitment; 2) Learning organization practices have a positive effect on perceived organizational effectiveness; and 3) Organizational commitment has a positive relationship with organizational effectiveness. The study used a quantitative research design. Three measurements were used to form an integrated 58 item instrument. It includes: 1) The Dimensions of Learning Organization Questionnaire (Marsick & Watkins, 1999, 2003), 21 items; 2) Organizational Commitment Questionnaire (Mowday, Steers, & Porter, 1979), 9 items; and 3) Survey of Organizations (Taylor & Bower, 1972), 20 items. In addition, demographic information, 8 items, comprised a fourth section in the questionnaire. The instrument was back-translated from English to Chinese. The validity of the three components of the instrument was examined by factor analysis, and the relationships were tested by correlation and structural equation modeling (SEM). In addition, descriptive analysis was used for the demographic information, items, dimensions, and instrument's characteristics. The research used a self-administered computer-based Internet survey to collect the research data. The data were collected from a sample of 300 SMEs including 152 outstanding awarded SMEs (AOSMEs) and 148 incubating start-up SMEs (ISSMEs) in Taiwan. IRB approval was sought. Permission from the publishers to use the instrument was obtained. The results suggested that learning organization practices can be viewed as an important antecedent factor for organizational commitment, as well as an antecedent factor for organizational effectiveness. It has a moderately positive association with organizational effectiveness and a strongly positive relation with organizational commitment. Furthermore, the relationship between organizational commitment and organizational effectiveness is reciprocal but not equal. Organizational commitment has a moderately positive impact on organizational effectiveness; however, organizational effectiveness has a weak positive influence on organizational commitment. The findings not only provided a new direction for organizational research on key variables, but also generated an important implication for organizational practice: Strengthening learning organization practices is a wise way to create organizational effectiveness; strong learning organization practices are good to develop the organizational commitment; and the well developed organizational commitment is an advantage to foster organizational effectiveness.