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KCA JOURNAL OF BUSINESS MANAGEMENT: VOL. 2, ISSUE 1 (2009).

STRATEGIC POSITIONING FOR SUSTAINABLE COMPETITIVE ADVANTAGE: AN ORGANIZATIONAL LEARNING APPROACH John I. Njuguna1 Jomo Kenyatta University of Agriculture and Technology Juja, Kenya
Abstract Organizational learning is increasingly being considered as one of the fundamental sources of competitive advantage within the context of strategic management. However, most literature has not clearly linked organizational learning with sustainable competitive advantage. This paper, therefore, explores and discusses the role of organizational learning in helping business firms to achieve sustainable competitive advantage. Specifically, it deals with how organizational learning process can be used to develop knowledge resources and capabilities that lead to sustainable competitive advantage. The main method used is analysis and integration of theories to develop a conceptual model. This paper proposes that, through organizational learning a firm can develop hard to imitate knowledge resources and capabilities (human capital as well as organizational capital) that create value which in turn lead to superior performance.

INTRODUCTION In the 21 century business landscape, firms must compete in a complex and challenging context that is being transformed by many factors from globalization, frequent and uncertain changes to the growing use of information technologies (DeNisi, Hitt and Jackson, 2003). Therefore, achieving a competitive advantage is a major preoccupation of senior managers in the competitive and slow growth markets, which characterize many businesses today and the sources of competitive advantage have been a major concern for scholars and practitioners for the last two decades (Henderson, 1983; Porter, 1985; Coyne, 1986; Prahalad and Hamel, 1990; Barney, 1991; Grant, 1991; Peteraf, 1993). The importance of…...

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