Influence of personal mastery on organizational performance through organizational learning and innovation in large firms and SMEs

This paper analyzes the influences of personal mastery on organizational performance, both directly and indirectly through the dynamic capabilities of organizational learning and innovation. Although these indirect interrelations are very important for improving organizational performance, they are not usually explored in research. We confirm these influences empirically in both large firms and SMEs, basing our research on a sample of 401 Spanish firms. The results reveal that in both types of firms: (1) personal mastery influences organizational performance directly and indirectly through organizational learning and innovation; (2) organizational learning influences organizational performance positively, both directly and indirectly through organizational innovation; (3) organizational innovation influences organizational performance positively. (c) 2007 Elsevier Ltd. All rights reserved.