Mediating role of innovation capabilities in the relationship between organisational learning and international competitiveness of agro-processing firms: evidence from Uganda

Abstract

Abstract For organisations to be competitive in international markets, viewing learning as a vital resource is essential. However, some argue that effective learning depends largely on an organisation’s ability to foster innovative capabilities that transform knowledge into new or improved products, strategies, and systems to enhance performance outcomes. This perspective motivated this study to examine how innovation capabilities might mediate the relationship between organisational learning and international competitiveness in Ugandan agro-processing firms, an area that has not been thoroughly examined. Using a quantitative approach, data were collected from 125 Ugandan exporters of agro-processed products via a structured questionnaire. Partial least squares structural equation modelling (PLS-SEM) was used to test hypotheses. The findings indicate that innovation capabilities partially mediate the relationship between organisational learning and international market competitiveness. These results imply that agro-processing firms should cultivate a culture of learning to foster innovation and bolster international competitiveness. This can be achieved by empowering employees to experiment with new ideas and by engaging with external stakeholders such as research institutions, suppliers, and innovation centres, both locally and internationally, to generate information and new ideas to address ever-changing market demands and expectations. Such efforts will help agro-processing firms acquire insights, generate ideas, expand their knowledge, and develop the experience necessary to create superior products, processes, strategies, and systems to compete globally.