Influence of the open-mindedness culture on organizational memory: an empirical investigation of Spanish SMEs

Abstract

‘Organizational memory’ (OM) is a concept that has been used to refer to stocks of data, information, and knowledge to which every member of the organization has access. This article examines the relative importance and significance of the existence of an ‘open-mindedness culture’ (OC) to the existence and nature of ‘OM’. We further examine the effect of the existence of OM on conditions that promote individual learning (IL). An empirical study of 164 small and medium enterprises in the Spanish construction industry was conducted, and the results were analyzed using structural equation modeling validated by factor analysis. Two structural equation models, derived from relevant literature, have been used, resulting in the conclusion that the existence of OC is a prior step in the utilization of OM. Our analysis also found that the extent to which conditions that promote IL occur depends on the extent and nature of the OM developed by the company.

Keywords:

• hard memory
• individual learning
• SMEs
• soft memory

Notes

1. According to the European Commission (2003, p. 36), SMEs comprise fewer than 250 employees, with an annual turnover not exceeding €50 million, and an annual balance sheet total not exceeding €43 million.

2. The decision to retain items was based on a recommendation proposed by Hair et al. (1998) with regard to statistical criteria (loadings and regression weights).