Creating strategic capabilities: organizational learning and knowledge management in the new economy

Purpose - The purpose of this paper is to contribute to the knowledge management and organizational learning literatures by clarifying the concepts and presenting a framework illustrating their relationship. The framework is meant to reduce confusion about learning and knowledge management issues and guide the design of international studies and data analysis. Design/methodology/approach - Conceptual discussion and approach are undertaken. The discussion focuses on the extrapolation of the current situation into the future. Findings - On the basis of the analysis it is suggested that to be successful in the new economy companies are required to innovate and adopt, hence learn, far more quickly and effectively than their counterparts. Effective learning means shifting not only what gets learned but also how learning takes place and evolves in organizational contexts. This requires developing a strategic learning capability by linking learning with knowledge management in and among organizations. This paper attempted to highlight such a link. Practical implications - The paper can help knowledge management and organizational learning managers to develop and implement effective learning and knowledge strategies, leading to the development of sustainable competitive advantage and organizational success. Originality/value - The paper shows that integration of knowledge management and organizational learning approaches will place current theories and practices in perspective for the future, making it easier for twenty-first century organizations and practitioners to reach the right decisions.