Linking organisational learning, performance, and sustainable performance in universities: an empirical study in Europe

Universities face significant changes, including digitalisation, sustainability challenges, and the need for increased entrepreneurship and innovation. Adapting to these changes requires effective organisational learning. This study investigates how organisational learning culture influences organisational learning processes, which in turn affect both organisational performance and sustainable performance within the university context. The research is grounded in the natural resource-based view (NRBV) and organisational learning theory. The limited existing research on organisational learning in universities, particularly regarding its impact on sustainable performance, highlights the significance and novelty of this study, given the complex nature of universities as organizations. Sustainable development, as defined by the Brundtland Commission, emphasizes meeting present needs without compromising future generations. This concept is deeply intertwined with organisational learning, requiring adjustments to mental models and collaborative efforts. The 2030 Agenda for Sustainable Development further underscores the importance of integrating sustainability into higher education, encompassing teaching, research, governance, and outreach. This study specifically focuses on the governance aspect of sustainability in universities and its link to organisational learning. The natural resource-based view (NRBV) suggests that unique, hard-to-imitate resources like organisational learning provide a sustainable competitive advantage. Organisational learning, involving both intentional and unintentional knowledge acquisition and behavioural change, is a valuable, difficult-to-replicate resource for universities. This study thus explores the relationship between organisational learning, as a process, and sustainable performance, filling a crucial gap in the literature.

The literature review examines the concepts of organisational learning processes, organisational learning culture, and their impact on organisational performance and sustainable performance in universities. Regarding organisational learning processes, the study focuses on information acquisition and knowledge dissemination, drawing upon the work of Huber (1991) and Santos-Vijande et al. (2012). Organisational learning culture is considered a predictor of the organisational learning process, drawing upon the work of Flores et al. (2012) and emphasizing its importance in fostering a supportive environment for knowledge sharing. The literature also highlights the scarcity of research explicitly addressing learning culture and its relationship with organisational learning in universities. Regarding performance, the review establishes the link between organisational learning and university performance, with some empirical studies suggesting a positive relationship; however, many focus on organisational learning as a capability rather than a process. The study notes the under-researched area of the relationship between organisational learning and sustainable performance in universities, referencing studies conducted in other sectors that highlighted the positive relationship between organisational learning and firm sustainability and economic performance. The review then establishes hypotheses based on the reviewed literature that examine the relationships between organisational learning culture, organisational learning processes, university performance, and sustainable performance. In addition, a mediating role of organizational learning is also hypothesized.

This study employed a correlational design and collected data using a self-selection sampling method via online questionnaires distributed to 10,366 university teachers across six European countries (Portugal, Spain, Italy, France, Germany, and Greece). The response rate was 5%, yielding 525 responses, with 221 complete questionnaires used for analysis. The sample comprised associate professors (36.7%), assistant professors (15.4%), full professors (22%), lecturers and assistants (6.8%), and invited professors (3.2%). The majority (65.2%) had worked at the same university for over seven years, and over five years in their current team (66.5%). The age of the sample was fairly spread out (49.9% 50 years and above), and males composed 47.5% of the sample, with females (37.6%) and respondents who preferred not to say (14.9%). The questionnaire included established measures adapted for the university context for organisational learning culture (Watkins and Marsick 1993, 1997), organisational learning processes (Santos-Vijande et al. 2012), university performance (Jyothibabu et al. 2010, adapted for 7-point Likert scale), and sustainable performance (Iqbal and Ahmad 2021, focusing on environmental and social aspects). Cronbach's alpha demonstrated strong reliability for all scales. Data analysis involved descriptive statistics, correlation analysis, and multiple regression analysis using SPSS version 27. Mediation analysis was performed using the PROCESS macro by Andrew Hayes (2013) to test the hypothesized mediating role of organisational learning processes. The questionnaires were developed on Qualtrics. The survey was conducted from October 2022 to January 2023.

The study's key findings support all five hypotheses. First, a strong positive relationship was found between organisational learning culture (dialogue and inquiry, system connection) and organisational learning processes (information acquisition, knowledge dissemination) (H1). Dialogue and inquiry showed stronger correlations with information acquisition (r=0.70, p<0.001) and knowledge dissemination (r=0.64, p<0.001) than system connection. Regression analysis confirmed the positive effects of both dimensions of organisational learning culture on both information acquisition and knowledge dissemination. Second, a significant positive relationship existed between organisational learning processes and university performance (H2). Both information acquisition (r=0.58, p<0.001) and knowledge dissemination (r=0.64, p<0.001) positively predicted university performance in regression analysis. Third, a strong positive relationship was observed between organisational learning culture and university performance (H3), with dialogue and inquiry showing a stronger effect than system connection. Regression analysis confirmed the significant positive contribution of both cultural dimensions to university performance. Fourth, the mediation analysis (H4) confirmed the mediating role of organisational learning processes between organisational learning culture and university performance. Both information acquisition and knowledge dissemination significantly mediated the relationships between the cultural dimensions and university performance. Finally, a strong positive relationship was found between organisational learning processes and sustainable performance (H5), with both information acquisition and knowledge dissemination positively impacting both sustainable environmental and social performance. Regression analysis confirmed these positive effects.

The findings highlight the importance of organisational learning culture in fostering effective learning processes within universities and its impact on university performance and sustainable performance. The mediation effect of the learning process underscores the need for universities to not only cultivate a supportive learning environment but also to ensure efficient information acquisition and knowledge dissemination mechanisms are in place. The positive relationship between organisational learning and sustainable performance underscores the importance of integrating sustainability practices into university operations and emphasizes the role of organisational learning in achieving sustainable development goals. The results contribute theoretically by validating the organizational learning culture and outcomes while identifying relevant learning processes specific to universities and addressing the often-overlooked aspect of organizational learning as a process within universities. Empirically, the study provides a validated model for assessing organisational learning in universities, which can serve as a baseline for future research and practical implementation.

This study provides strong empirical evidence for the interconnectedness of organisational learning culture, processes, university performance, and sustainable performance. The findings offer valuable insights for university leaders and policymakers, emphasizing the importance of fostering a supportive learning environment and efficient knowledge management systems. Future research could explore the model's generalizability across diverse university contexts (private universities, different geographical regions), examine the role of specific leadership styles in promoting organisational learning, and investigate the long-term impact of organisational learning on university sustainability.

The study's limitations include its reliance on self-selection sampling, which may introduce bias. The cross-sectional design limits causal inferences, and the focus on teachers' perceptions may not fully capture the organizational learning processes across all university levels. The response rate, although acceptable within online surveys, may still introduce response bias and restrict the generalizability of the findings. Furthermore, the focus on European Public Universities might limit the generalizability of the findings to other settings such as private institutions or universities in other regions.