The Relationship of Learning Orientation to Organizational Performance

The fundamental premise of successful firms possessing resources that are superior to those of their competitors has been prevalent in the related literature. This has fostered a wealth of research to determine the source, as well as the necessary maintenance of these resources. Resources should possess certain characteristics that would benefit the firm, given that effective strategic deployment of resources at any time is moderated by time, the actions of competitors, and the dynamics of the external environment. It is through this ongoing process of competing and ultimately succeeding through ideocyncratic resources that provides the catalyst for superior financial performance. These capabilities, which are developed over time, provide a source of advantage that must be continually protected and improved. As the external environment changes, dynamism in the environment requires a departure from established organizational strategies; the entrepreneurial firm pursues competitive advantage through innovation, considered essential to competitive advantage. The competitive marketplace becomes the impetus for innovation, and innovation in turn becomes a key form of organizational learning