Organizational learning's effect on firm performance: Evidence from Ethiopian state-owned enterprises

This study examines the effect of organizational learning (OL) on firm performance (Prf) in Ethiopian state-owned enterprises (SOEs), addressing a gap in the literature on developing economies. Drawing on Dynamic Capabilities (DCs) theory, the research utilizes an explanatory design and quantitative surveys administered to 365 employees across five strategically significant Ethiopian SOEs. Data was analyzed using covariance-based structural equation modeling (CB-SEM) to examine the causal relationships between OL (dimensions of OL include managerial commitment, systems perspective, openness to experimentation, and knowledge transfer and integration) and Prf (including both financial and non-financial aspects). The study found a significant positive direct effect of OL on Prf (β = 0.61, p < .001), with OL accounting for 37% of the variance in performance. The study demonstrates the value of OL in resource-constrained and institutionally fragmented environments. Practical implications encompass the cultivation of learning cultures within SOEs via adaptive leadership and knowledge-sharing frameworks. Theoretically, this study contributes to the literature on the role of OL in improving firm performance in developing economies.

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Publication Details

Journal
Sustainable Futures
Published
2026-02-04
DOI
https://doi.org/10.1016/j.sftr.2026.101716
Primary Topic
Organizational Learning and Leadership
Type
article
Field-Weighted Citation Impact
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article

Organizational learning's effect on firm performance: Evidence from Ethiopian state-owned enterprises

Zerihun Ayenew Birbirsa, Addisalem Tadesse Bogale, Mekonnen Bogale Abegaz
Sustainable Futures
Organizational Learning and Leadership
article

Organizational learning's effect on firm performance: Evidence from Ethiopian state-owned enterprises

Zerihun Ayenew Birbirsa, Addisalem Tadesse Bogale, Mekonnen Bogale Abegaz
article en

Abstract

This study examines the effect of organizational learning (OL) on firm performance (Prf) in Ethiopian state-owned enterprises (SOEs), addressing a gap in the literature on developing economies. Drawing on Dynamic Capabilities (DCs) theory, the research utilizes an explanatory design and quantitative surveys administered to 365 employees across five strategically significant Ethiopian SOEs. Data was analyzed using covariance-based structural equation modeling (CB-SEM) to examine the causal relationships between OL (dimensions of OL include managerial commitment, systems perspective, openness to experimentation, and knowledge transfer and integration) and Prf (including both financial and non-financial aspects). The study found a significant positive direct effect of OL on Prf (β = 0.61, p < .001), with OL accounting for 37% of the variance in performance. The study demonstrates the value of OL in resource-constrained and institutionally fragmented environments. Practical implications encompass the cultivation of learning cultures within SOEs via adaptive leadership and knowledge-sharing frameworks. Theoretically, this study contributes to the literature on the role of OL in improving firm performance in developing economies.

Sustainable FuturesVol. 11
Openalex Percentile: Top 69%
Organizational Learning and Leadership
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Organizational learning's effect on firm performance: Evidence from Ethiopian state-owned enterprises — Zerihun Ayenew Birbirsa, Addisalem Tadesse Bogale, et al. · Sustainable Futures (2026) | TGRS Research Map | TGRS