Structure, Process and Performance: A new paradigm for Organizational Learning - Case study of an Engineering, Procurement and Construction project management firm in energy sector

The literature is relatively poor in terms of empirical studies about Organizational Learning impact on performance. This is why this thesis paper considers the relationship between Organizational Learning and Business Performance. The research supports the premises that there is a positive relationship between a Learning Organization’s structure and Organizational Learning process but also between this same process and business performance. The literature review offers a new conceptual framework that is then applied to a case study on Biotec International, a small-size Engineering, Procurement and Construction (EPC) company offering environmental and renewable energy solutions. The analysis adopts the perspective of a facility management office (FMO) integration into an EPC contractor business model. A survey based on Organizational Learning was administered to the entirety of the organization’s members and several individual interviews were lead with middle management. The results show that FMO is performing better than the rest of the organization although it still lies under the score of the benchmark in terms of Learning Organization structure. However, the department appears to contribute greatly to Business Performance through an informal Organizational Learning process. As a consequence, the existence of a FMO within the business model appears to be a competitive advantage. In order to sustain this advantage, the study analyses the results in details and provides concrete recommendations for management supported by a profitability analysis. Although the findings of the case study are relatively specific to a certain industry, the conceptual framework can be expanded to other industries.