Paradigms
A Research Journal of Commerce, Economics, and Social Sciences
Online ISSN: 2410-0854
Print ISSN: 1996-2800
 
     
 

Paradigms Journal

Organizational learning, differentiation strategy and perceived firm performance of textile firms
Author(s) :
Muhammad Waqas (Punjab Higher Education Commission, Lahore)
Saif Ullah (National University of Modern Languages, Lahore Campus)
Muhammad Abid Nouman (Water and Power Development Authority (WAPDA))
Abstract
With the rise of global competition, organizations must acquire new knowledge and enhance their capabilities in response to fast changing market requirements. In international markets, organizations can gather knowledge from both internal and external sources; however, few existing studies explore this topic in detail. This study employs organizational learning theory and differentiation strategy theory to formulate a new organizational learning-differentiation strategy- perceived firm performance theoretical model concerning firms operating in the textile sector. This research explores the moderating role of differentiation strategy in the relation between organizational learning and perceived firm performance and effect of organizational learning on differentiation strategies, and perceived firm performance, as well as the impact of differentiation strategy on perceived firm performance. The model was tested using of 300 Pakistani textile firms operating in a variety of host markets. The empirical results indicate that perceived firm performance is significantly affected by organizational learning (explorative and exploitative learning) and differentiation strategy (innovation, quality and low cost strategies). The results confirm the moderating role of differentiation strategy in the relation between organizational learning and perceived firm performance. The research provide a new direction for future research regarding organizational learning, differentiation strategy, and firm performance.
Keywords: Organizational learning, differentiation strategy, perceived firm performance.
 
 

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