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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
insights underpin the strategic role of organizational learning and signify its effective role
in the organizational performance and competitive advantage.
Cyert and March (1963) can be referred as the pioneers to the concept of
organizational learning (OL). They viewed organizations in the context of behavior and
called organizations as adaptive systems. This adaptive behavior is based in routines and
routines include the form, rules, procedures, conventions, strategies and technologies
around which organizations are constructed and through which they operate (Levitt &
March, 1988). It is known that ―routines‖ are rules, procedures, conventions, strategies
(Levitt & March, 1988). Congellosi and Dill (1965) accepted this view of Cyert and
March (1963) regarding organizations as adaptive systems and organizational behavior
but argued their aspect of OL because it does not account the interaction between
individual or subgroup learning and learning by the total system. They recommend ― a
need for attention between individual and organizational learning‖.
Fiol and Lyles (1985) identified four contextual factors: corporate culture
conducive to learning; strategy that allows flexibility; an organizational structure that
allows both innovativeness and new insights; and the environment that facilitate learning.
Culture is comprised of shared beliefs, the ideologies, and the norms that influence
organizational action-taking. These shared beliefs direct the strategy and organizational
change/or learning in organizations which often involves a restructuring of those broad
norms and belief systems. Organizational structure is a result of learning and can be
designed to encourage learning and reflective action-taking. They recommend an
environment that balances the change in status quo and continuity of policies because
learning occurs when a tension between the constancy and change is created.
Learning should be aimed at identifying and analyzing appropriate processes
detect anomalies and provide directions to realign the present policies to maintain the
effectiveness. Single-loop (1996) learning occurs when the mismatch is corrected by
identifying performance gap, and changing the action but it is argued that merely
adaptability does not facilitate creativity (Senge, 1990) and it is found that the double
loop learning (Argyris, 1978) or generative learning (Senge, 2006) is required that fosters
the learning in organization. Generative learning challenges the underlying governing
values. Master programs are changed which, in turn, leads to changes in action (Argyris
& Schon, 1978).
According to Goh (1998), ―organizational learning is a long-term activity that will
build competitive advantage over time and requires sustained management attention,
commitment, and effort‖. Organizations preserve knowledge and share information
across functions. Interpretation gives meanings to information, translates events and
develops shared understanding. According to Dixon (1997) organizations construct
meaning through learning from information gathered across sections. These meanings are
called private meanings if not accessible to other organizational members. Individual
continuously learns from the new encounters / experiences and ideas but it does not
essentially mean that organization too is learning. According to Senge (1990) learning
takes place by observing data, using individuals‘ experience, selecting, giving meaning,
sketching assumptions, concluding, adapting beliefs and then taking actions ensuing
these beliefs. Organizations learn only through individuals and without them no
organizational learning occurs (Senge, 1990).
COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 259
JANUARY 2011
VOL 2, NO 9