Does Organizational Learning Affect Organizational Performance with Innovation Practice as a Mediating Role in the Case of Ethiopia?

The influence on organizational performance is caused due to organizational learning and innovation practice. In reality, organizations that acquire, share, and transfer knowledge perform better in addition to practicing innovative technology to reduce wastage and produce/process innovative products/services. This study had great significance by adding more knowledge to existing literature, and its results were also used by managers, government, and concerned organizations to improve their organization performance. Therefore, the aim of this study is to assess the effect of organizational learning on organizational performance with the mediation role of innovation practice in the case of Batu area flower firms in Oromia, Ethiopia. The study used a quantitative approach with descriptive and explanatory design. The study targeted 415 sampled respondents, resulting in a 94% response rate, and used a Likert scale questionnaire to gather information. The study employed factor analysis using exploratory factor analysis, confirmatory factor analysis, and structural equation model for hypothesis testing. The study result revealed that organizational learning has a statistically significant effect on innovation practice but a statistically insignificant effect on organizational performance. The study also revealed that innovation plays a full mediation role between organizational learning and performance. The study concluded that organizations pay more attention to acquiring, sharing, and transferring knowledge to improve innovation practice, which enables them to practice innovative technology to maximize their organizational performance. From this, the managers and concerned bodies should plan and work on organizational learning and practicing innovative technology. In the future, other researchers should use different organizations and methodologies.