146 Impact of Organization Learning Capability on Performance Innovation: Mediating role of Information Technology Shamim Akhtar 1 Dr. Tian Hongyun 2 , Shuja Iqbal 3 , Sheikh Farhan Ashraf 4 , Iram Bashir 5 Abstract Modern business innovation has close contact with the adoption of information technology and learning abilities in business procedures. Therefore, this study analysed the impact of organizational learning capability on the innovation performance of the firm. This study also observes the mediating role of information technology adoption between the relationship of organizational learning capability and innovation performance. Data were collected from employees of banks via questionnaire method and furthered analysed by using Smart- PLS software. The results explained that organizational learning capability has a positive and significant impact on innovation performance directly. Moreover, the said variables also positively and significantly affect innovation performance when mediated by the firm's information technology adoption. Keywords: Technology Adoption, Innovation Performance, learning capability, organization learning, IT adoption, adopting IT. Organizations focus on improving the performance innovation, considering it a widely accepted concept to provide value for the customers and profit for the organizations. Moreover, firms also prefer to adopt information technology during innovation to boost creativity, competitive edge, and ultimately the revenue. Information technology (IT) enables firms to manage the opportunities, innovation process, and analyses the innovation performance (Ammirato, Sofo, Felicetti, & Raso, 2018). This situation is observed both in the manufacturing and services industries. Banks explicitly focus on organizational learning capability and information technology adoption in the financial sector to improve business performance. Firms mostly try to organize entire management resources, learning abilities, and IT systems to compete with the business environment changes, which untimely aims to attain performance innovation. Organizational learning capability gives stress on the significance of the firm and employees’ learning at the workplace. Research explains that “organizations should facilitate all individuals' learning at the workplace and the transfer of intangible resources among individuals and toward the organization. The capacity to learn a key factor if an organization wants to innovate and grow helps improve organizational learning capability. That affects innovation performance since product innovation can be considered an organizational learning process” (Palacios- Marques, Devece-Cara' nana, & Llopis-Albert, 2016). The capability level of the firm to learn about the advancement of activities performed at the workplace decides what activities can turn into IT systems for innovation of products and services. Therefore, the learning procedure can support the utilization of several innovation schemes in the organization and the whole industry (Rana, Weerakkody, Dwivedi, & Piercy, 2014). Business performance and IT adoption also demand the organization's learning capability through which employees learn 124 School of Management, Jiangsu University, Zhenjiang China. Corresponding author Email: shamimakhtar92@hotmail.com 3 Lahore School of Business, University of Lahore. 5 Government College University Faisalabad, Pakistan and perform well for innovation. The business-level becomes an essential consideration while observing organizational learning capability to adopt IT. The central point behind this notion notices how quickly organizations learn and innovate their performance. The research explained that the firm's size presents a significant challenge when it pursues innovation during the process of implementing organizational learning and technology adoption (Hameed, Counsell, & Swift, 2012). The effects of e-business adoption in communications on specific aspects of performance are critical. Online communication can enhance efficiency in many ways. For instance, during the field interviews, managers frequently claimed that electronic communications reduced the time to reach customers and speeded up responses to customer inquiries. The managers also indicated that e-business processes helped reduce the cost of material and personnel involved in paper-based communications both within and outside the business unit (Wu, Mahajan, & Balasubramanian, 2003). According to Ernst and Young (2016), the banking industry generally (all over the world) has invested heavily in the digital environment, and this subsequently leads to alteration of their operations side (Ernst, & Young, 2016). Contribution of the study This study contributes theoretically in the literature by elaborating on the significance of performance innovation by analyzing the impact of organizational learning capability and information technology (IT) adoption on performance innovation. Direct relations of the organizational learning capability and performance innovation are discussed widely. In contrast, few studies focused on the mediated role of information technology adoption between the organizational learning capability and performance innovation. Therefore statistically, this study contributes the results in a mediation perspective to strengthen the previous literature. The Journal of Educational Paradigms 2021, Vol. 03(01) 146-150 © Authors ISSN (Print): 2709-202X ISSN (Online): 2709-2038 DOI:10.47609/0301012021