Moderating effect of organizational learning type on performance improvement

It has been advocated that information available from a performance measurement system (PMS) is an invaluable source of knowledge for contracting organizations. As such, it has been suggested that performance improvement can be achieved if contracting organizations can capitalize on the learning opportunities accorded from feedback derived from a PMS. Literature on learning also suggests that organizations display three types of learning: (1) single loop, double loop and Deutero. This paper reports a study that aims to (1) empirically test the positive effect derived performance feedback on performance; and (2) identify the extent to which the learning types have significant impact on performance improvement. Data on performance, performance feedback available, and responses were collected through a questionnaire survey. Pearson correlation and multiple moderated regression were used to accomplish research objectives (1) and (2), respectively, as mentioned. The findings suggested that there is a significant correlation between performance improvement and feedback from a PMS. It was found that all three forms of organizational learning can contribute to performance improvement and are not mutually exclusive. Nonetheless, double-loop learning practices that addresses the root causes of underperformance were found to be more versatile in facilitating improvement in efficiency and effectiveness. © 2008 ASCE.