Abstract
This research aims to explore the impact of organizational learning with a mediating role of innovation on organizational performance. Furthermore, this research was conducted in the textile processing sectors in Faisalabad, Pakistan. Organizational learning and its four dimensions managerial commitment, systems perspective, openness and experimentation and the knowledge transfer and integration contributes to the significant impact on organizational performance. Structural Equation Modeling was used to measure the model and SMART-PLS version 2.0 Package. The research identified some recommendations to textile processing sectors. Organizations can provide a platform to facilitate its processing sectors to promote innovation and creativity. Findings identify a number of suggestions through which there can be solve problems with the use of knowledge, learning and innovative skills in other organizations.