Volume 12 - Issue 68
/ August 2023
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http:// www.amazoniainvestiga.info ISSN 2322- 6307
DOI: https://doi.org/10.34069/AI/2023.68.08.4
How to Cite:
Alay, H.K., & Şener, Z. (2023). Investigation of the role of individual creativity of employees in the relationship of learning
organization and business performance. Amazonia Investiga, 12(68), 43-51. https://doi.org/10.34069/AI/2023.68.08.4
Investigation of the role of individual creativity of employees in the
relationship of learning organization and business performance
Öğrenen Organizasyon ve İşletme Performansı İlişkisinde Çalışanların Bireysel
Yaratıcılık Rolünün İncelenmesi
Received: July 1, 2023 Accepted: August 18, 2023
Written by:
Hazal Koray Alay1
https://orcid.org/0000-0002-6638-3089
Zeynep Şener2
https://orcid.org/0000-0001-9954-3889
Abstract
This study aims to examine the role of individual
creativity of employees in the relationship
between the learning organization and business
performance.
Quantitative patterned research methods were
used in the study. A survey method was used to
collect first-hand data. The research sample
consists of a group of 301 employees operating
in various sectors and working in different
positions in the province of Istanbul, Turkey. The
questionnaire consists of appropriate scales to
measure learning organization characteristics,
individual creativity and business performance.
Data analysis was carried out using statistical
methods and regression analysis via SPSS 2.0
statistical program.
Findings show that learning organization
characteristics positively affect the individual
creativity role of employees. In addition, it has
been revealed that the individual creativity level
of the employees has a positive relationship with
the business performance. The mediating effect
of the individual creativity variable in the
relationship between the learning organization
and the job performance has also been found.
These findings highlight that the learning
organization is an effective strategy in increasing
business performance and that the individual
creativity of employees is a critical factor in this
process.
Keywords: Learning organizations, individual
creativity, business performance, mediating
effect.
1
Assist. Prof. Dr., Batman University, Vocational School of Health Services, Turkey. WoS Researcher ID: JEZ-2487-2023
2
Master Degree Student, İstanbul Esenyurt University, Turkey. WoS Researcher ID: AAC-8406-2020
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Introduction
In today's business environment, rapidly
changing market conditions and increasing
competition have brought along the need for
businesses to constantly produce innovative
solutions and adopt learning processes. In this
context, organizations aim to produce new ideas
and solutions by utilizing the creativity potential
of their employees, rather than relying only on
existing knowledge. Individual creativity of
employees is accepted as a critical factor for
organizations to achieve innovation and
competitive advantage (Parjanen, 2012; Wang &
Nickerson, 2017).
The learning organization approach expresses a
management approach in which businesses
continuously encourage learning and focus on
the development of skills such as sharing
information, critical thinking and problem
solving (Edmondson & Moingeon, 1998;
Garavan, 1997). This approach supports the
learning processes of employees in order to
reveal their creativity potential and enable them
to produce innovative solutions. Learning
organizations create a culture that encourages the
flow of information, helping employees develop
new ideas and improve business performance
(Mills & Friesen, 1992; Huysman, 2000).
This study aims to understand the relationship
between learning organization management and
business performance and to examine the role of
individual creativity of employees in this
relationship. It includes the individual creativity
of employees, their ability to generate new and
original ideas and their ability to cope with
problems. In particular, this study aims to
investigate how the learning organization
approach affects individual creativity of
employees and the effect of this effect on
business performance. In this context, it will be
investigated how the characteristics of
organizations such as learning culture,
knowledge sharing, encouraging critical thinking
and problem solving skills affect the creative
potential of employees. Secondly, it is aimed to
evaluate the relationship between the individual
creativity level of the employees and the
performance of the business. In this way, it will
be tried to understand how the learning
organization approach affects business
performance and how important the individual
creativity of employees plays in this relationship.
In this context, the analysis of the data collected
by the survey method was carried out by using
quantitative research methods. It is thought that
the findings will contribute to the process of
determining the strategies to increase business
performance by encouraging individual
creativity.
Literature Review
Learning Organization
A learning organization is an organization that
constantly acquires new knowledge and skills,
shares this knowledge, applies it, and adapts
itself for continuous development and
improvement. This type of organization
effectively uses internal and external sources of
information to adapt to change (Antunes &
Pinheiro, 2020). When the literature is examined,
it is seen that learning organizations are defined
in different ways. The concept of learning
organization was used for the first time in Peter
Senge's book "The Fifth Discipline" published in
1990 (Yoon & Park, 2023). Peter Senge defines
this concept as “organizations in which people
constantly improve themselves in order to
achieve the result they want, and learn
collectively by pushing their own limits” and
talks about the five basic disciplines that these
organizations should have. He stated these 5
disciplines as personal mastery, thinking models,
shared vision, team learning and systems
thinking (Senge, 1990). However, Bowles (1993)
defined the concept of learning organization as
'the formation of institutions, the organization of
knowledge and activities, and the improvement
of individual abilities and job skills of
employees'. Gratton (1993: 55) defines this
concept as 'an organization capable of creating,
acquiring and transferring knowledge and
changing behavior in order to create new
knowledge and this understanding'. The learning
organization is the process of developing
organizational activities with better knowledge
and understanding, and it is an organization that
constantly expands its capacity to create the
future (Antunes & Pinheiro, 2020). Learning
organization is also the process of dynamically
creating knowledge within the organization for
the development of distinctive competencies in
order to improve the organization's performance
and results (Kumar et al., 2021).
Individual Creativity
Individual creativity is a person's ability to come
up with new and valuable ideas, solutions or
products. This ability supports to put forward
original and innovative ideas based on existing
knowledge and experience, to deal with problems
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from different perspectives and to produce
alternative solutions (Egan, 2005). In addition,
individual creativity is based on human
imagination, different perspectives, originality,
flexibility, problem-solving skills, risk taking,
critical thinking and independence (Taggar,
2002). A creative individual overcomes
conventional thought patterns, pushes the limits
and produces creative solutions (Yu et al., 2019).
Individual creativity plays a critical role for
innovation, progress and development. Creative
thoughts and ideas lead to the emergence of new
products, services or business models (Alikaj et
al., 2021). Creative individuals can produce new
and effective solutions to problems, gain
competitive advantage and differentiate.
Individuals with individual creativity have more
interesting and original ideas than individuals
with low creativity (Asif et al., 2019).
Business Performance
Business performance refers to the degree and
level of success of a business in achieving the
determined goals (Pathiranage, 2019). Business
performance can be evaluated using various
criteria and indicators and is often associated
with financial and operational performance
(Bourne et al., 2003). Business performance
evaluation is a system used to understand the
current state of the business, identify weak points
and identify opportunities for improvement
(Marr & Schiuma, 2003). There are various
methods for evaluating performance (Ghouri et
al., 2020). Performance evaluation method,
evaluation results vary according to the field and
nature of the task to be used. Performance
measurement is carried out in two ways, financial
and non-financial (Beuren et al., 2022). The
criteria used to measure an organization's
performance are often financial considerations.
Considering today's global competitive
conditions, non-financial performance criteria
such as quality, reputation, satisfaction, etc. we
can add criteria, they are important elements used
to measure the performance of a workplace
(Helmold and Samara, 2019, Lima et al., 2021).
Methodology
This study aims to understand the relationship
between learning organization management,
business performance and the individual
creativity role of employees. In this context,
firstly, the basic theoretical framework has been
established, and the hypotheses and model of the
research are presented below.
It is frequently emphasized in the literature that
the learning organization approach has a positive
effect on the individual creativity of employees
(Purwanto, 2020; Zhao et al., 2021; Parjanen,
2012; Ismail, 2005; Syam et al., 2018). Learning
organizations support individual creativity by
creating a learning culture and knowledge
sharing environment that encourages employees
to generate new ideas (Hirst et al, 2009; Huang
and Yao, 2017; Tesluk et al.,1997). In this
context, factors such as the organization's culture
of learning, knowledge sharing, critical thinking
and problem-solving skills can affect the creative
potential of employees. The learning
organization approach is expected to increase the
individual creativity level of the employees. In
this context, the H1 hypothesis is expressed as
follows.
H1: Learning organization management affects
the individual creativity level of employees.
The relationship between individual creativity
and business performance is also an important
area of research. The ability of employees to
think creatively, solve problems and innovate is
a critical factor for businesses to gain competitive
advantage. Studies in the literature show that
individual creativity of employees has a positive
effect on business performance (Barrett et al.,
2005; Zhao et al., 2021; Moulang, 2015; Frare &
Beuren, 2021; Hahn et al., 2015). Employees
with high individual creativity can produce
innovative solutions, increase productivity,
ensure customer satisfaction and gain
competitive advantage.
The H2 hypothesis developed in this direction can
be expressed as follows:
H2: There is a significant relationship between
individual creativity and business performance.
Considering that the learning organization
reveals and supports the creative potentials of the
employees, it is predicted that this approach may
have an increasing effect on business
performance. Developing creative thinking skills
of employees, producing innovative solutions to
problems and using their innovation skills can
contribute to a sustainable competitive advantage
for the business. In this context, the H3
hypothesis developed can be expressed as
follows:
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H3: Individual creativity variable has a mediating
effect on the relationship between learning
organization and business performance
The universe of the study consists of employees
participating in the employment network in
Istanbul, Turkey. Yazıcıoğlu and Erdoğan (2004)
and De Winter et al., (2009) state that with a
sampling error of 0.05, a sample size of 384 is
sufficient for the population size of 1 million and
above in the calculation of sample sizes that should
be drawn from different universe sizes. In this
context, 301 data from the questionnaires sent to
4800 employees with convenience sampling
method and included in the analysis constitute the
sample of this study.
This research is limited to the perceptions of the
learning organization, individual creativity and
business performance variables of 301 insured
employees in the employment network in Istanbul,
Turkey, between June 2022 and January 2023. As
in all academic studies, time and cost constraints are
other important limitations in this study, such as the
prejudices developed by the employees against the
survey method.
The Learning Organization scale developed by
Basım et al., (2009) was used to measure the
perceptions of the employees towards the Learning
Organization. The scale developed by Özer (2011)
was used to measure business performance. The
creativity scale developed by Pıçakçı (2013) was
used to measure the individual creativity variable.
In order to get information about demographic data
in the research, employees were asked to answer
open-ended questions about age, gender, marital
status, educational status, field of activity of the
institution, working time in the institution, position
in the institution and the number of personnel in the
institution.
Results and Discussion
In this section, the statistical analyzes used in the
analysis of the data and the findings related to the
data are given.
Normality Analysis
The skewness and kurtosis coefficients were
checked in order to determine the compatibility of
the scale parameters with the normal distribution.
Accordingly, since the skewness and kurtosis
coefficients were in the range of ±2, it was accepted
that the parameters met the assumption of
conformity to the normal distribution.
Findings Regarding the Characteristics of the
Participants
58% of the participants included in the study were
female and 42% were male. 45% of the participants
are in the 21-30 age range, 42% are in the 31-40 age
range, and 13% are 41.
47% are married and 52% are single. 57% of the
participants are undergraduate and 43% graduate.
Looking at the position, it was seen that 72% of the
participants were employees, 25% were mid-level
managers, and 3% were senior managers.
Considering the working period, 33% of the
participants have 0-2 years, 24% 3- 5 years, 30%
6-10 years, and 13% 11 years and more.
Findings Regarding Validity and Reliability
Analysis
In order to measure the reliability of the scales, the
Cronbach Alpha coefficient was calculated. The
interpretation of the Cronbach Alpha coefficient
values is given in the table above. Accordingly, as
a result of the reliability analysis applied to the scale
items, the Cronbach Alpha coefficient of the
individual creativity scale was calculated as 0.869,
and the Cronbach Alpha coefficient of the work
performance scale was calculated as 0.888. The
learning organization variable is divided into 4 sub-
dimensions The Cronbach Alpha coefficient for the
continuous learning sub-dimension, which is one of
the learning organization sub-dimensions, was
calculated as 0.824, the Cronbach Alpha coefficient
for the supportive leadership sub-dimension was
0.935, the Cronbach Alpha coefficient for the
innovative approaches sub-dimension was 0.691,
and the Cronbach Alpha coefficient for the open-
mindedness sub-dimension was 0.926, and all
scales were found to be reliable.
Findings for Correlation between Variables and
Regression Analysis
First of all, correlation and regression analyzes were
used to test the hypotheses in the research model.
The larger the absolute value of the correlation
coefficient, the stronger the relationship between
the variables (Newbold, 2013, 321). The regression
models obtained, on the other hand, show the
direction and effect level of the relationship for the
variables (Durmuş et al., 2013, 154). The
correlation coefficients and descriptive statistics
between the research variables are shown in Table
1.
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Table 1.
Findings on Correlation Coefficients Between Variables.
Individual
Creativity
Continuous
Learning
Supportive
Leadership
Innovative
Approaches
Open
Mindeed
Business
Performance
Learning
Oganization
Individual
Creativity
1
**
,403
**
,318
**
,312
**
,374
**
,449
**
,409
Continuous
Learning
1
**
,581
**
,559
**
,566
**
,545
**
,740
Supportive
Leadership
1
**
,657
**
,760
**
,548
**
,893
Innovative
Approaches
1
**
,635
**
,418
**
,793
Open
Minded
1
**
,611
**
,931
Business
Performance
1
**
,637
Learning
Oganization
1
Source: Prepared by the authors.
According to Table 1, individual creativity and
continuous learning (r=0.403;p<0.01), supportive
leadership (r=0.318;p<0.01), innovative
approaches (r=0.312; p<0.01), A positive and
moderate relationship between open-mindedness
(r=0.374;p<0.01) job performance
(r=0.449,p<0.01) and learning organization general
scores (r=0.409;p<0.01) has. There is a positive and
strong relationship between job performance and
learning organization (r=0.637; p<0.01).
After the correlation analysis, multiple regression
analysis was performed to understand the role of the
individual creativity variable in the relationship
between learning organization management and
business performance and to determine the effect of
the variables in this model numerically. Table 2
shows the Regression Analysis Results for the
Research Model.
Table 2.
Findings for Regression Analysis.
B
S.E.
β
t
p
1
Constant
1,479
0,332
4,46
0
Individual Creativity
0,557
0,079
0,449
7,06
0
=0,202, F=49,841, p<0,001
2
R
2
Constant
0,548
0,294
1,863
0,064
Individual Creativity
0,258
0,072
0,208
3,57
0
Continuous Learning
0,223
0,067
0,232
3,314
0,001
Supportive Leadership
0,115
0,073
0,136
1,561
0,12
Innovative Approaches
-0,092
0,073
-0,094
-1,263
0,208
Open Minded
0,323
0,077
0,358
4,176
0
=0,474, F=34,780, p<0,001
2
R
Source: Prepared by the authors.
Hierarchical regression analysis was applied to
determine the predictive effect of individual
creativity and learning organization sub-
dimensions on job performance. Two models
were created based on the hierarchical regression
analysis. In the first model, only the individual
creativity parameter was included in the model as
an independent variable, and the established
model was found to be significant (F=49.841;
p<0.001). Accordingly, individual creativity has
a positive effect on job performance (B=0.557;
p<0.001). Considering the R2 value depending
on the model, it was seen that individual
creativity significantly explained 20.2% of the
change in job performance. In the second step,
the parameters of continuous learning,
supportive leadership, innovative approaches
and open-mindedness were added to the model
along with individual creativity, and it was seen
that this model was also significant (F=0.474;
p<0.001). In the second model, individual
creativity (B=0.258;p<0.001), continuous
learning (B=0.223; p=0.001) and open-
mindedness (B=0.323;p<0.001) variables were
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found to have predictive effects on job
performance. These parameters explain 47.4% of the change in job performance significantly
(R2=0.474,p<0.001).
Table 3.
3-Step Regression Analysis
Predictor
Model 1: Individual
Creativity
Model 2: Business
Performance
Model 3: Business
Performance
β
SE
p
β
SE
p
β
SE
p
Constant
2,868
0,207
<0,001
1,324
0,217
<0,001
0,518
0,294
<0,001
Learning
Organization
0,364
0,055
0,001
0,668
0,057
<0,001
0,571
0,061
<0,001
Individual
Creativity
0,281
0,072
<0,001
F
39,598
134,592
79,750
p
0,001
<0,001
<001
R2
0,167
0,405
0,448
Source: Prepared by the authors.
In Model 1, the effect of learning organization on
individual creativity was analyzed. Accordingly,
the effect of the learning organization on
individual creativity is positive and statistically
significant (β = 0.364, p = 0.001). In Model 2, the
effect of learning organization on individual
creativity was analyzed. Accordingly, the effect
of learning organization on individual creativity
is positive and statistically significant (β = 0.668,
p<0.001). In Model 3, the effect of learning
organization and individual creativity on job
performance is analyzed. Accordingly, the effect
of individual creativity on job performance was
found to be positive and significant (β = 0.281,
p = 0.309), and the effect of learning organization
on job performance was found to be positive and
significant (β = 0.571, <0.001). Therefore, the
structural model hypotheses required for the
implementation of the mediation analysis were
provided.
Table 4.
Findings on the Relationship Between Learning Organization and Job Performance
Mediation Effect Values Created by Adding
Continuous Learning to the Model
β
SS
Lower limit
95%
Confidence
Interval
Upper Limit
95%
Confidence
Interval
The Total Impact of the Learning Organization on
Business Performance
0,668
0,057
0,555
0,782
Direct Impact of Learning Organization on Business
Performance
0,571
0,061
0,451
0,691
Indirect Impact of Learning Organization on Business
Performance
0,097
0,035
0,036
0,178
Learning Organization-- > Individual Creativity --> Job
Performance
Source: Prepared by the authors.
The total, direct and indirect effect values and
bootstrap confidence intervals regarding the
mediating effect of the individual creativity
variable on the relationship between the learning
organization and job performance are given in
the table above. As seen in the table, the direct
effect value was 0.571, the indirect effect value
was 0.097 and the total effect value was 0.668.
Accordingly, the mediation effect of individual
creativity is statistically significant (γ = 0.097,
SD = 0.035, 95% CI [0.036, 0.178]), as can be
seen from the table showing the mediation
analysis, and that the confidence intervals do not
contain zero.
The findings highlight the importance of
businesses supporting their learning processes
and employees' creativity potential. Developing
and sustaining the learning organization is
important for the development of innovation,
problem-solving skills and innovation
capabilities. These processes are critical to
increase and maintain the competitive advantage
of businesses (Davis & Daley, 2008).
Current research shows that learning
organization management has a positive effect on
business performance. Learning organizations
encourage employees to constantly acquire new
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knowledge and skills, support knowledge
sharing, and improve their ability to adapt to
change (Weldy, 2009). The findings we have
obtained in line with this information show that
learning organizations exhibit higher business
performance. (Galer & Van Der Heijden, 1992)
In this context, it can be said that companies with
a learning organizational culture gain
competitive advantage and meet customer
expectations better by adopting innovation and
continuous improvement processes. (Ellinge et
al., 2003).
In addition, we observed that the individual
creativity of employees has a significant effect on
business performance. Creative thinking,
different perspectives, the ability to produce
innovative ideas and solutions are critical factors
for businesses to gain competitive advantage
(Subiyakto et al., 2020). Our findings reveal that
individual creativity is associated with higher
business performance. Creative workers can
approach problems from different perspectives,
develop innovative products or services, and
increase productivity by improving business
processes (Hussein et al., 2014).
Another important finding is that we observed
that individual creativity of employees has a
mediating role in the relationship between
learning organization management and business
performance. It is supported by our findings that
learning organizations provide an environment
where employees encourage creative thinking
and share new knowledge and experiences (Raj
& Srivastava, 2016). While this environment
enables employees to reveal and develop their
individual creativity, it also plays an important
role on the performance of the business (Hsu,
2007).
Conclusions
The results of the analyzes showed that the
positive effect between individual creativity and
continuous learning, supportive leadership,
innovative approaches, open-mindedness,
business performance and learning organization
management are the factors that directly affect
the performance of businesses. Creative
individuals will have the desire to discover and
apply new information, new methods, thanks to
continuous learning, and they will have the
opportunity to turn this desire into reality thanks
to supportive leaders. Having a supportive leader
is an indication that open-mindedness is
dominant in the organization. In this way, this
behavior of creative people will be noticed within
the organization and will set a good example by
other personnel and ultimately play an important
role in the development of the organization.
It has been revealed that learning organizations
increase business performance, individual
creativity has a positive effect on business
performance, and there is a relationship between
learning organization management and
individual creativity with this study. These
results highlight the importance of businesses
adopting a learning organization approach in
order to develop a learning culture, encourage the
creative potential of employees and increase
business performance.
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