How learning capability affects firm's performance: Some empirical findings in China

This paper introduces a study framework of learning capability audit and examines the relevance of the learning capability and firm's performance to building and sustaining the competitiveness of Chinese innovative firms. Empirical data were acquired through a recent study of 213 innovative firms from Beijing, China. T-test is adopted to verify significance of difference in learning capability between "Stronger competitive firms" and "weaker ones". Correlation analysis is employed to identify the relationship between learning capability and performance among these firms, including both economic performance and innovative one. The findings reveal that learning capability plays a vital role in enhancing the firm's performance. Having strong learning capability could significantly improve their competitiveness in these Chinese firms. The empirical evidences confirm that the organizational learning capability is indeed an important inherent ability basis, on which enterprise can acquire its competitive advantage.