ABSTRACT

In a globalized world, organizations today operate in complicated environments and under increasing competition. In order to respond to needs of the changing environments, organizational learning has been postulated as an anchor to increased organizational performance and competitive edge. Effective learning has to be integrated within the organization. This study investigated the effect of organizational learning on performance of small and medium technology enterprise in Nairobi, Kenya. The study’s specific objectives were to; determine the effect of learning culture on performance of small and medium enterprises (SMEs), to assess the effect of training activities on performance of SMES, determine the effects of innovation on performance of SMEs, and to establish the effects of knowledge management on performance of SMES in Nairobi, Kenya. The study utilized a descriptive research design with the target population being technical and permanent employees of HP Enterprises Ltd and Infotech Africa Ltd in Nairobi. Both quantitative and qualitative primary data was collected using a questionnaire, and analyzed using the computer package for social sciences (SPSS) version 23.0. Both descriptive and inferential analysis was conducted and findings were presented in form of distribution tables, graphs and pie charts. From the study’s findings, the employees strongly agreed that:managers in the organizations are held accountable for learning as well as its implementation to improve performance of firms; managers monitor the learning process and its implementation; firms organize internal training of their employees and that their firms appreciated formal, informal, on-job and off-job training programs;continuous learning enabled firms to introduce new products and services into the market ahead of competition.The study concluded that organizational learning greatly influence performance of firms in the IT industry in Kenya hence should embraced by all firms for better performance. The study recommended that the government in collaboration with other authorities shouldadequately support SMEs in the IT industry by prioritizing activities and formulation of effective policies and programs that embrace organizational learningin small and medium enterprises.