The role of leadership in organizational learning in multinational companies

Abstract

Purpose This paper aims to conceptualize the role of leadership in organizational learning processes in multinational companies (MNCs). The authors present a model describing how managers in an MNC facilitated transitions between sub-processes of organizational learning at several organizational levels. Design/methodology/approach The authors collected data from the plants of a global process company in Norway, Brazil and China. Observation, in-depth interviews and archival material enabled one to reconstruct the organizational learning process over a period of 30 years as the company developed its own tailor-made improvement programme. Findings Based on the data, the authors describe the role of leadership in linking the sub-processes of organizational learning as orchestration, sponsoring and persistence. Orchestration included creating faith and optimism and designing the organization to allow close cooperation between operators and managers in the sub-process of experimenting. This eased transferring and institutionalizing in the global organization. Sponsoring included structural changes to support transferring and the demonstration of dedication to improvement programme values. These factors were important for institutionalizing. Persistence involved the continuous focus on adjustment of the improvement programme, which then facilitated further experimenting. Originality/value Firstly, this study suggests that activities and decisions in one sub-process have important implications for the following sub-processes. Secondly, this study indicates that leaders’ role in facilitating the transitions between sub-processes extend beyond their individual traits and behaviour, which previous research had focused on, and includes decisions concerning organizational structure and culture that help link social and organizational learning.