Abstract: | ABSTRACT Rising demand for quality, efficiency, and openness in the management of collective problems and their solutions has prompted successful government agencies to consider knowledge as a key resource. Government agencies make intensive use of human capital and knowledge in the performance of their duties. Knowledge represents the most important strategic resource, and its skillful management is a key capability in institutional performance. Using structural equation modeling, we analyze the relationship between the learning capability of an organizational system, characterized by the dynamic interaction of stocks and flows of knowledge, and its impact on performance. Our results support the view that learning capability, especially knowledge flows and stocks, has a positive impact on the performance of public institutions. |