This empirical study attempts to investigate the effect of organizational learning on innovation as well as the
impact of innovation on company performance. Based on the literature review, two hypotheses are proposed to
guide the study: the positive impact of organizational learning on innovation and the positive relationship
between innovation and performance. Data was collected via electronic survey from 320 small and medium
enterprises operating in the ICT industry in Malaysia. Findings from the study support both the two hypotheses
thus providing further evidence that organizational learning contributes to innovation capability, and that
innovation is positively related to firm performance. Several guidelines and practical implications from the study
are also discussed.