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Journal cover: Journal of Asia Business Studies

Journal of Asia Business Studies

ISSN: 1558-7894

Online from: 2007

Subject Area: Regional Management Studies

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Strategic change and firm performance: the moderating effect of organisational learning


Document Information:
Title:Strategic change and firm performance: the moderating effect of organisational learning
Author(s):Chaiporn Vithessonthi, (Faculty of Accountancy and Management at Mahasarakham University, Mahasarakham, Thailand), Amonrat Thoumrungroje, (Department of International Business Management, at Assumption University, Bangkok, Thailand)
Citation:Chaiporn Vithessonthi, Amonrat Thoumrungroje, (2011) "Strategic change and firm performance: the moderating effect of organisational learning", Journal of Asia Business Studies, Vol. 5 Iss: 2, pp.194 - 210
Keywords:Firm performance, Organisational change, Organisational learning, Strategic change
Article type:Conceptual paper
DOI:10.1108/15587891111152348 (Permanent URL)
Publisher:Emerald Group Publishing Limited
Abstract:

Purpose – The primary purpose of this research is to review and discuss the potential associations among strategic change, organisational learning, and firm performance, and to propose a conceptual model to investigate such relationships.

Design/methodology/approach – The literature on the strategic change-performance relationship was explored with the emphasis on elaborating the effects of frequency of strategic change on firm performance. In addition, a moderating role of organisational learning on such a relationship is introduced.

Findings – From the literature review, it is proposed that the relationship between strategic change and firm performance is an inverted U-shape. Extremely frequent and infrequent strategic changes are deemed to be detrimental to firm performance. However, the research reveals that the strategic change-performance relationship may alter due to the moderation of organisational learning.

Research limitations/implications – Given the conceptual nature of this paper, a review of relevant literature and a conceptual model are presented with suggestions for future empirical study. This paper also extends the strategic change-performance research by advocating an inverted U-shape relationship as one plausible explanation for inconsistent findings found in past literature.

Practical implications – Managers should try to understand their organisations and implement an appropriate level of strategic change in order to maximise the firm's overall performance. In addition, a significant role of organisational learning in supporting firms to manoeuvre in today's increasingly dynamic and competitive environment is highlighted to managers.

Originality/value – This paper attempts to explain: why firms might attain different levels of performance provided that they undergo various degrees of strategic change (in terms of frequency); and what factors contribute to the variations in organisational performance among firms that have undertaken the same number of strategic changes during a given period of time.



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