The effects of administrative innovation implementation on performance: An organizational learning approach

This study defines organizational learning as greater cognizance of action-outcome relationships and the effects that environmental events have on these relationships. It shows that two learning mechanisms, adaptation-in-use and change catalysis, are key factors inrealizing gains from the implementation of administrative innovations. Adaptation-in-use denotes ongoing adjustment of the innovation to the organizational context. Change catalysis means that implementation is an occasion for rethinking the way the organization does business and an opportunity to introduce additional new practices and to innovate. A total of 1150 facilities belonging to 885 companies that implemented the worldwide quality standard ISO 9000 participated in this study. Results demonstrate that the effects of implementation of this administrative innovation on performance are curvilinear; both too little and too much implementation have a negative effect on performance. The two learning mechanisms moderate the relationship between implementation of the administrative innovation and subsequent performance, such that implementation is associated with higher performance when adaptation-in-use and change catalysis are high rather than low.