The concept of knowledge management (KM) and learning involves creation, analysis, storage, dissemination and usage of knowledge for improved decision-making and continuous learning. Learning occurs when knowledge is absorbed and results in action. Organizations do not organically develop into learning organizations (LO); there are usually factors prompting their change. Successful LOs are those which are capable of learning faster than their competitors in development of new product and services, customer responsiveness, managing intellectual capital, processes and technology. Such rapid adaptation requires the efficient and effective use of knowledge.
The following paper is based on a research study conducted to gain an understanding of the relationship between the dimensions of KM and LO. Further, we investigate whether there are any significant differences between the relationships that occur in the case of private and public sector organizations in India. A convenience sample of 51 top-level and middle-level executives representing 16 private and public sector organizations participated in this study. The results show that private sector organizations fare better on all dimensions of LO as compared with public sector organizations, although the scores are just satisfactory and there is scope for improvement. We also found that the KM dimensions that we have identified have a positive impact on dimensions of LO, which is consistent with our proposed hypotheses. Finally, the impact of the type of organization, that is public/private, is found statistically insignificant in the relationship between KM and LO. These findings may help decision makers in initiating KM to develop processes for transforming the organization into the LO.