The paper "Determining the Impact of Organizational Learning on Business Sustainable Competitive Advantage" is an outstanding example of a business research proposal. Unstable market conditions resulting from increased diversity and intensity of competition and innovation have led to organizational capabilities instead of served markets becoming one of the major basis upon which organizations establish long-term strategies. Knowledge has become one of the most important resources from a strategic point of view and hence essential organizational capability of the organization should be on generating, integrating and institutionalizing knowledge through continuous learning processes.
Organizational learning is extensively being regarded as an essential source of competitive advantage in the strategic management perspective. As a result, this study sought to explore the importance of organizational learning in enabling organizations to attain sustainable competitive advantage. In particular, it focuses on how organization learning is employed to build up knowledge, capabilities, and resources, which bring about sustainable competitive advantage. First, the introduction provides enough background information on organizational learning and the aims of the study. The literature review describes how organizational learning is related to prior research.
The degree to which organizational learning generates sustainable competitive advantage will be determined through a survey of 25 firms with more than 150 employees. A questionnaire testing the different study variables will be the main data collection instrument. In-depth interviews will also be held with top management personnel from different firms. The study results establish whether organizational learning leads to sustainable competitive advantage. Introduction 1.1 Background In the current business environment, organizations are competing in a complex and demanding business context, which is undergoing transformation arising from factors such as globalization and uncertain and frequent changes to the increasing use of information technologies.
As a result, attaining a competitive advantage is a key concern of the management of most organizations. The importance of distinctive competences and competitive advantage as determinants of organizational growth and success has increased immensely with time. Porter (1985) noted that the increase in the importance of competitive advantage is founded on the belief that sustainable competitive advantage is the essential source of the basis of performing well in the long-range. According to Coplin (2002), academicians and practitioners have concentrated their research on organizational particular aspects, which are distinctive, add value to the customers, and can be applied in numerous industrial setting.
Hence, it is acknowledged that across different sectors, it is recognized that achieving a competitive advantage is one of the most testing issues in the current business world. This issue has resulted in the development of knowledge-based as well as a resource-based premise, which looks at the connection between key capabilities and resources, above-normal performance and long term competitive advantage. Organizations are considered to have a sustainable competitive advantage after they implement a value-creating tactic that is not currently employed by their competitors and one that is not susceptible to duplication (Sanchez & Henne 2010).
Hence, competitive advantage usually exists only after endeavors for replicating an advantage have failed. It is for these reasons that most firms are concentrating on strategies and methods, which are not easily replicated. One such strategy is organizational learning through which a firm is able to develop intellectual capital (social capital, human capital and firm capacities which are difficult and rate to copy. According to Dierkes, Antal and Child (2003, p.
491), “ Knowledge accumulated through organizational learning is an important source of a firm's sustainable competitive advantage because it is non-tradable and difficult to imitate. ” Gor (2003) noted that the pace at which a firm develops into a learning organization might become the only sustainable basis of competitive advantage. For further argued that to stay competitive, numerous firms are implementing a continuous learning tactic through encouraging workers to continuously gain innovative skills to be creative and to attempt work methods and new processes to facilitate the realization of strategic organizational goals.
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