An integrative model of organizational learning and social capital on effective knowledge transfer and perceived organizational performance

Purpose The purpose of this paper is to set out to examine the relationships of organizational learning, social capital and the effectiveness of knowledge transfer and perceived organisational performance. Integrating organizational learning capability with social capital networks to shape a holistic knowledge sharing and management enterprise framework is a significant strategy to achieve organizational success. Design/methodology/approach An integrative framework is used to determine the relationships of key variables of organizational learning such as learning intention, shared values, absorption capacity, integration capability, and social capital variables such as network structure, network stability and network relational quality on the effectiveness of knowledge transfer in organizations. In this research, senior management (Chief Executive Officer, Chief Financial Officer, Chief Operating Officer) from 650 firms were randomly sampled and surveyed from the register of the Industrial Technological Research Institute; 111 respondents are used in this study. Findings The results indicated that absorption capacity, learning intention and integration capability in organizational learning had the greatest positive relationship with process innovation in knowledge transfer. The findings suggest that organizational learning processes are more important than social capital networks within the integrated knowledge transfer framework and that management could utilize their limited resources better to improve on organizational learning levers for greater effectiveness in knowledge transfer. Originality/value This paper focuses on the existing gap in empirical work on the relationships of organizational learning, social capital variables and the effectiveness of knowledge transfer. The results of this paper could assist management in strategic decisions in resource allocation particularly in promoting and sustaining knowledge transfer to enhance organizational performance.