The Effect of Organizational Learning Capability and Flexible Working on Organizational Performance: A Conceptual Model

The rapid changing on business environment has induced practitioners and researchers to find the new ways on how to improve organizational capability of continuous adaptation. Organizational learning promotes continuous improvement and adaptation of the organization. Various studies had explained that organizational learning capability (OLC) has a positive effect on organizational performance. The study was exploring the dimension of OLC and organizational performance. To optimize the implementation of organizational learning, organizations require a strategy. One of the strategies that can be used for organization is to implement flexible working arrangements (FWA). Various studies have explained that FWAs can enhance organizational performance. The FWAs system is not only able to improve organizational performance, but also can create balance for employees in carrying out work and the learning process within the organization. By using a literature review, this paper explained the relationship between OLC and organizational performance and describes how FWAs support as a moderating variable. The purpose of this paper is to introduce a conceptual model which includes organizational learning capability, organizational performance, and flexible working arrangement as a moderating variable. Then, an empirical investigation to test the relationship among the proposed model will be on the future study. The future study will focus also to provide a recommendation program to improve the organization performance based on this framework.