This paper examines the applicability of the learning organization concept and its influence upon firm performance in mainland China. Based on the theoretical framework proposed by Watkins and Marsick, four dimensions of the learning organization instead of seven dimensions were identified. A balanced scorecard-based performance evaluation questionnaire was developed. Regression analyses were used to examine the relationship between learning organization and firm performance. The results indicate that learning organization has positive influence on firm performance. (Contains 3 tables.)