Resumo

Organizational Learning Capability (OLC) should provide managers and decision-makers key insights towards results tracking and business strategies (Chiva, Alegre & Lapiedra, 2007). This happens to foster innovation, consequently upgrading firm performance (Alegre & Chiva, 2013). On the other hand, as OLC and innovation are interrelated factors, it becomes necessary to understand Frugal Innovation (FI) and Operational Performance (OP). The relationship between OLC and OP, although implied, also needs to be addressed empirically in the research literature (Migdadi, 2021).

Hence, the study aimed to analyse Organizational Learning Capability (OLC) direct relationship with Operational Performance (OP) and Frugal Innovation (FI) across Brazilian manufacturing industries. It was also sought to confirm FIs’ direct positive relationship on OP, as also, the indirect relationship between OLC, FI and OP. While doing so, it was first expected to provide a deeper knowledge of OLC-FI-OP relationships across industries.

Innovation's effect on performance might be greater than organisational learnings. As organisational learning is seen as an antecedent of OLC has also proven to have a positive effect on performance (Chiva, Alegre & Lapiedra, 2007). Positive results concerning OLC and OP relationships were found (Ferreira, Cardim & Coelho, 2020). Future research should contribute to the literature presenting different variables in different contexts. It is also important to understand if FI could be a mediator of OLC’s relationship with OP.

Quantitative research was performed using collected data from 191 firms, which were analyzed using Structural Equation Modelling. The survey was designed based on previously built constructs, as more and more researchers are using two or more constructs/scales to address a problem, once one solely construct would not be able to precisely fulfil the measurement task. The variables used in this study were three, OLC, FI and OP.

The relationship test presents a positive and significant relationship (β=0.325) between OLC and OP (H1). The H2, FI also presented significant and positive relation towards OP (β=0,377). Hypothesis 3 was likewise validated (β = 0.567) as OLC also proved to have a significant and positive relationship with FI. This confirms this study suspicions that, once OLC affects innovation, it also has the power to affect FI. Hypothesis H4 was also validated as OLC proven to have a significant and positive indirect relationship with FI and OP (β = 0.280), affirming the moderating role of FI.

Furthermore, this main research evidence highlights the fact that OLC is an FI and OP driver. In this sense, OLC must, then, be developed and executed as an integral part of firms' strategies and eventually, the acquired organisational learning practices will drive companies towards the development of frugal innovation. Accordingly, companies need to develop and maintain organisational learning capabilities that allow them to create, integrate and continually reconfigure new and existing resources, also enhancing and/or maintaining operational performance.

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