Organizational Learning as a Catalyst for Knowledge-Based Competitive Advantage

Abstract

This paper investigates the impact of organizational learning (OL) on building the sustainable knowledge-based competitive advantage (KBCA) “within the context of strategic management”. It integrates scholarship regarding the processes by which organizations collect, distribute, understand, and use knowledge for sharpening their competitive advantage. The approach taken is of creating a model that shows the relationships between the OL dimensions and the measuring indicators of the firm performance. Results show that strong OL capabilities are one of the most important factors influencing innovation, operational effectiveness, responsiveness to the market, and subsequently, creating sustainable KBCA. The paper argues that OL is critical for business performance in the face of continual environmental changes while advocating for perpetually reinforced organizational learning as a strategic focus and a long-standing organizational advantage alongside recommending further studies on capturing the transfer of tacit knowledge.