The role of organisational learning in fostering business performance of SMMEs in the western region of Ghana

Abstract

Research on Organisational Learning has been up-surging in recent years in management literature. Yet empirical research on how it impacts Small, Micro, and Medium Enterprises’ (SMME) performance is still under-researched, particularly in Ghana. This study set out to investigate the role of organisational learning in the performance of SMMEs in the Western Region of Ghana. The study employed a positivist research paradigm using a quantitative approach where a structured questionnaire was used to collect data from owners and managers of SMMEs registered with the Ghana National Board of Small-Scale Industries (NBSSI) in the Western Region. Using a convenience sampling technique, a total of 389 self-administered questionnaires were distributed. Of these, 370 were returned, and 350 were deemed suitable for analysis. Statistical Package for the Social Sciences (SPSS version 27) was used for inferential and descriptive analysis of the data. The study revealed that there is a statistically significant and positive relationship between organisational learning and SME performance. This study concluded that the higher SMME owners and managers perceived the various dimensions of organisational learning positively, the higher the performance of the firms. Consequently, Continuous learning and opportunity exploitation are necessary for SMME growth and sustainability, although institutional limits must also be taken into account. Thus, managers and owners should develop ideas based on ongoing education, readiness, active search for information and existing knowledge, and idea evaluation.