A Learning Organization and its Competitive Advantage

Abstract

Competition is a constant in a market economy, but changes depending on the industry as the market for some industries has more competitors and is therefore not monopolistic. Competitive companies are always working to achieve greater business results. Their development and innovation play an important role in introducing something new and different, something that other companies on the market do not offer. At the same time, employees creating company products or performing services and activities must also develop in order to achieve profits and business success. They have a certain knowledge to fulfil the current needs of the workflow, but as it develops and improves, their knowledge must also be improved and upgraded. In order to develop and innovate in present-day economy, companies have to employ highly educated people. A learning organization within the company allows employees to attain this level of knowledge and transfer it to others, thus contributing to a developed business environment. This represents one of the key factors for the company’s competitive advantage on the market, because its employees are successful and effective. The company’s intellectual capital grows and, consequently, so does the financial capital. Theoretical facts and research performed on learning organizations and competitiveness support the fact that a learning organization has a competitive advantage. Hence, the characteristics of a learning organization represent the company’s competitive advantage on the economic market.