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Organizational Learning as a Source of Competitive Advantage Although the concept of organizational learning is not very new in the

Generating Organizational Intelligence

6.6. Organizational Learning as a Source of Competitive Advantage Although the concept of organizational learning is not very new in the

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actions. The subjects dealt with under each of these three headings inter-twine with each other from time to time. There is a close relationship be-tween the components of organizational intelligence and the cases dealt with by the learning process and organizational knowledge generation with learning process. Thus, the subject requires in depth exploration and clari-fication by further studies (Kalkan, 2004: 403-406).

Finally, this can be said: organizational intelligence is a prerequisite of organizational learning and organizational learning makes organizational knowledge generation possible.

6.6. Organizational Learning as a Source of Competitive Advantage

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ditions that will cause to improve this performance. As mentioned above, a fairly big subset of a large number of studies made in this area has focused on the development of the “dynamic theory of strategy.” Teece et al. ana-lyzed competencies, skills, and strategic resources, and explained in detail the resource-based outlooks of firms in an effort to explore the probabil-ity of the “dynamic competencies theory.” The role of learning in develop-ing new skills is at the center of this analysis. Teece et al. defined learndevelop-ing as

“a process where repetition and experience make it possible to have defin-able new production opportunities and better and faster performed tasks”

and linked learning to expressly developed firm performance. Since the de-velopments in organizational processes result in the creation of new strate-gic skills, learning is understood as an individual and organizational process.

Adapting to the learning-based perspective of competitive advantage changes the grounds for defining how the various activities performed by firms are linked to high performance. As an activity of top management, improving performance under the old concepts of strategy had been based on the assumed “superior knowledge” of the administrators. Although top management still has an important role in the learning-based strategic management, the downward approach in strategy is no longer valid. The top management can do better by setting up the conditions for union loy-alty, taking responsibility, gaining experience, and learning from mistakes for employees at every level who endeavor to develop continuously at ev-ery stage of the firm’s total transformation process. To be able to define learning processes as a source of competitive advantage, these processes should have properties such as:

• Not substitutable

• Inimitable

• Not readily available

• Valuable

The performance enhancing learning in the terminology of resource-based firm view should have the following properties:

• Heterogeneity: Processes are not the same for all firms.

• Endurance: Learning processes should endure overtime.

• Causal uncertainty: The development and foundation of learning processes are not fully certain.

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• Deficient changeability: The transfer of learning processes within the limits of the organization is difficult.

• Inimitability: Learning processes cannot be imitated easily.

• Convenience: Firms can earn profit from learning.

For organizational learning concepts to be useful for strategy manage-ment they should be distributed to define the various dimensions of or-ganizational learning to be used in future assessments and predicting firm performance. In order for researchers to explain how learning affects per-formance, the learning activities should have the following properties:

• Being distinguishable: Good learning should be distinguishable from bad learning.

• Spreadability: The form of learning is present in the organization;

thus, rather than individual or group learning, it is better to show organizational learning.

• Being expressible: New coming workers can learn the new form of learning through explicit learning, implicit publicity, and other processes.

• Flexibility: The form of learning should be capable of changing to meet new conditions and needs (Carayannis and Alexander, 2002:

627-628).

Due to the constantly changing competitive scene, firms that special-ize in technological learning have the advantage. Both internal (firm’s sspecial-ize, structure, administrative capability) and external (status of the industry and sector) factors may increase the ability of the firm to engage in ef-fective technological learning processes or they can negatively affect this ability. In other words, effective management of such internal and exter-nal factors may provide competitive advantage through the development of basic capabilities.

However, in case these factors are not managed effectively, reduced ca-pabilities may cause decimations in the competitive scene. Technological learning facilitates a firm’s efforts in:

• Taking reasonable risks

• Making innovations

• Developing, maintaining, and using constantly changing (dynamic) basic capabilities

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• Creating continuous competitive advantage

• Creating value (Hitt et al., 2000: 233)

Looking at it from a different point of view, the world is strikingly advanc-ing towards the development of information technologies and the increasadvanc-ing importance of technology. For this reason, technological learning also needs refurbishment. The concept of technological learning in developing countries that naturally focus on technology and learning should be redefined in today’s high level competition conditions (D’Aveni, 1994: 98-103).

Many scientists maintain that for firms to be able to grow and sus-tain their vitality they should catch up with consolidated, interconnected learning. Lei et al. (1996) introduced the term “meta-learning” (high level learning) in the literature, which comprises knowledge transfer, experi-ence, and dynamic routines. They allege that high level learning is neces-sary for the maintenance and development of effective dynamic basic ca-pabilities. Firms need the speed and depth of organizational learning for effective technological knowledge management.

Huber (1991) posits that organizational experiences are effective means for firms to survive and grow in today’s unpredictable and rapidly chang-ing environment. Although the retained, stored organizational experiences are usually meant to increase the ability to adapt. This idea resembles stra-tegic and high level strastra-tegic learning (Huber, 1991: 88-115).

The best way to learn tacit knowledge for individuals may be learning by doing. For this reason, internship and orientation programs are the most effective way of increasing both tacit and explicit knowledge for newcom-ers. Sharing knowledge in self-organized teams or fields may be useful for individuals to increase their tacit and explicit knowledge.

Grant (1996) sees a firm as a place where knowledge is implemented.

Thus, the major task of organizational learning is to understand the processes of utilizing knowledge which is fitted into a process by its members and the coordination mechanism and to adapt to these mechanisms and processes for more effective and powerful use of knowledge (Grant, 1996: 109-127).