Local contexts and organizational learning for innovation in an emerging economy: the case of two Malaysian firms in Indonesia

Organizational learning for innovation is critical for the success of multinationals. In this study, we examine two multinationals and their learning and innovation, when operating in Indonesia as the host country. As research on organizational learning has largely overlooked the influence of regional contexts, we examine the role of contextual conditions of the host country with regard to its economic, political and competitive conditions, and the changing customer demands, on organizational learning and innovation. We also consider organizational learning process, taking into account organizational factors that influence such process. The implications, contributions and limitations of the study are then discussed.