Organizational unlearning as an antecedent of management excellence: The mediating role of innovation capability
Keywords:
Innovation Capability, Managerial Excellence, Organisational Renewal, Organisational Unlearning, PLS-SEMAbstract
Management excellence has traditionally been associated with continuous learning, process improvement, and the adoption of best managerial practices. However, in environments characterised by rapid technological change, increasing uncertainty, and growing complexity, knowledge accumulation alone may be insufficient to sustain excellence over time. In this context, organisational unlearning, defined as the deliberate capability to identify, question, and abandon obsolete routines, practices, and assumptions, has emerged as an important mechanism for organisational renewal and adaptation.
This study examines the relationship between organisational unlearning and management excellence, considering innovation capability as a mediating mechanism. A quantitative, explanatory, and cross-sectional research design was adopted. Data were collected through a structured questionnaire administered to 153 managers and professionals involved in organisational decision-making across different sectors. The proposed conceptual model was analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM).
The results indicate that organisational unlearning is positively associated with innovation capability (β = 0.521, p < 0.001) and management excellence (β = 0.245, p < 0.01). Innovation capability also demonstrates a significant positive relationship with management excellence (β = 0.498, p < 0.001) and partially mediates the relationship between organisational unlearning and management excellence. The structural model explains 23.5% of the variance in innovation capability and 40.5% of the variance in management excellence, indicating satisfactory explanatory and predictive capability.
The study contributes to the management literature by positioning management excellence as a dynamic outcome of organisational renewal capabilities rather than solely as the result of continuous learning and accumulated best practices. By integrating organisational unlearning, innovation capability, and management excellence within a single empirical framework, the study extends current knowledge on organisational adaptation in turbulent environments. From a managerial perspective, the findings highlight the importance of deliberately abandoning obsolete managerial practices while simultaneously strengthening innovation capability to promote sustained organisational adaptability and long-term management excellence.
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