Enhancing organisational performance through innovation, corporate foresight, organisational learning and employee behaviour

A considerable number of researchers have conducted a wide range of empirical studies at the international level concerning organisational performance. Their findings consistently highlight that organisational performance is a crucial area that demands significant attention, particularly from organisations aiming to succeed in their business ventures.

Organisational performance is fundamentally linked to various key concepts such as productivity, effectiveness, profitability, competitiveness, and efficiency. As such, organisations strive to attain high levels of performance to remain competitive in the long term. 

Low-performing organisations, by contrast, often suffer from high employee turnover and frequent absenteeism, both of which can further deteriorate an already struggling organisation. These issues can have a severely negative impact on a company’s financial health, as absentee employees drain valuable resources, further compounding the challenges faced by low-performing firms.

More critically, organisations that consistently exhibit poor performance tend to experience a steady decline in profits. This downward trend can significantly strain a company’s budget, and if unaddressed, may ultimately lead to bankruptcy due to the inability to sustain operational costs, culminating in business failure.

Researchers assert that high organisational performance can be realised when all members of the organisation work collectively toward common objectives focused on meeting customer needs. Furthermore, organisational performance is understood to involve both results and behaviour.

These behaviours originate from the individuals executing the work, thereby translating performance from an abstract idea into tangible action. Such behaviours are not merely tools for achieving positive results; they are outcomes in themselves, reflecting the physical and mental effort exerted by employees in fulfilling their roles and responsibilities to deliver the desired outcomes.

It is therefore critical, when evaluating organisational performance, to consider not just the outcomes but also the behaviours of all individuals within the organisation.

Organisational Innovation

The second factor influencing organisational performance is organisational innovation. This has emerged as a key strategic approach for many organisations, and innovation theories continue to evolve to support modern business environments. These advancements aim to guide organisations in enhancing their capacity for innovation.

A clear distinction has emerged between technological innovation and administrative innovation. While research initially focused heavily on technological aspects, it is now widely recognised that organisational (or administrative) innovation is equally important. Both types of innovation contribute positively to organisational performance.

Organisations that achieve superior levels of innovation are often those that implement new and improved methods in their business practices. These innovative approaches contribute significantly to sustained high performance over time.

Corporate Foresight

The third factor impacting organisational performance is corporate foresight. In reviewing the literature on this topic, researchers emphasise that companies operating in uncertain environments must enhance the flexibility of their innovation capabilities and strategic operations. This also includes the need to consistently evaluate their innovation strategies over extended periods.

Strategic foresight enables organisations to anticipate future challenges and opportunities. It allows them to use innovation as a tool for fulfilling their mission and vision. With foresight, organisations can proactively identify and define new markets, develop new products, and create new business models, thus aligning their strategies with long-term success.

Organisational Learning

The fourth and final factor addressed in this discussion is organisational learning. Recent research shows a shift toward broader definitions of organisational learning that include both cognitive and behavioural dimensions. This shift recognises that learning is deeply connected to how individuals perceive and interact with their environment.

Emerging perspectives such as social constructionist theories argue that organisational learning cannot be separated from performance or practice. Increasingly, the role of social interaction in learning processes is gaining attention.

Learning is understood to be a dynamic interplay between cognitive insights and behavioural applications, shaped by various contextual factors such as environment, key participants and historical background.

Rather than viewing knowledge as something static to be acquired or stored, the concept of "knowing" emphasises that knowledge becomes valuable when practiced, exchanged, and applied to specific situations. This perspective highlights that effective learning involves negotiating the relevance and applicability of different ideas, skills, and perspectives in real-world tasks.

Professor Dr Akram Al-Khaled is from Faculty of Management and Hospitality from Spectrum International University College (SIUC). The views expressed in this article are his own and do not necessarily reflect those of Sinar Daily.