Conclusions and Directions for Future Research

The objective of this chapter has been to reduce the conceptual confusion in the organizational learning, knowledge management, dynamic capabilities, and absorptive capacity fields by providing synthesis and integration of these closely related concepts. To achieve this purpose, we have critically reviewed previous research in an effort to understand how these literatures fit together and how they can be integrated into a more meaningful conceptual model for both academics and practitioners. We propose the present framework as an instrument to facilitate communication between researchers. It is not our intent to force fit the model, but to build on previous research to open up the possibility for provocative and creative dialogue that will further develop this integrative model.

A key contribution of this chapter has been to sketch the boundaries of each of the field’s domains. The conclusion from Figure 8.2 was that the fields greatly overlap. Although there are topics that are mainly being studied by one field (e.g. the knowledge-based view of the firm in KM, or how processes can be a source of sustainable competitive advantage in DC) and topics in which one community is more advanced in its theoretical development (e.g. a multilevel theory of learning in OL, and the specific importance of acquiring external knowledge for innovation in AC), there are also multiple topics that are being studied by OL, KM, DC, and AC researchers at the same time. We believe there are significant opportunities for each of the communities to learn from the experience and developments of the others.

In our original 2003 chapter in this Handbook, we called for authors to acknowledge multiple literature bases in their work. Since then, learning research has definitely moved towards increasing integration. We have emphasized in our present discussion the strong link between learning processes and knowledge-associated processes and capabilities. For example, Argyris and Shön’s (1978) organizational learning types and Winter’s (2003) dynamic capability hierarchy have many elements in common, and we think an integration of these two models would help to move the still young perspective of dynamic capabilities forward in its theoretical development. Elevating organizational learning processes as the core element of these diverse theories will go a long way to reduce risks to continuously ‘reinvent the wheel’ in the learning fields.

A final conclusion from our model is that learning and the accumulation of knowledge only leads to better performance when they support and are aligned with the firm’s strategy. We have argued in this chapter that researchers interested in studying the impact of OL, KM, DC, and AC on performance need to be more specific about the characteristics of the knowledge that enhances performance and the conditions under which learning leads to competitive advantage. We have proposed the fit between a firm’s knowledge management strategy as a moderator of the impact of learning and knowledge on performance. We see potential in the further theoretical development of the ‘learning/knowledge strategy’ construct and invite researchers in the two fields to work together to define the critical decisions or tradeoffs that managers need to address regarding learning and knowledge resources in their firms.

One important direction of future theoretical work is to build on Gioia and Pitre’s (1990) call for a multi-paradigm approach to theory building and to link, or at least juxtapose, the multiple views about knowledge, learning, and capabilities that have been created by different paradigms. Although researchers are likely to root their work in the assumptions of one paradigm, it is important to acknowledge and incorporate some of the insights coming from multiple perspectives. In our case, we come from a positivist perspective, but have tried to emphasize in our analysis the value of incorporating insights from social constructivist and interpretivist paradigms.

A final direction for future empirical work is to test our propositions. In testing them, future research needs to address the choice of appropriate measures and methodology. Several instruments are available in the academic and managerial OL, KM, DC, and AC literatures. Furthermore, future research can build on Bierly and Chakrabarti’s (1996) operationalization of a knowledge strategy in the pharmaceutical industry. To operationalize the fit between a firm’s business strategy and a firm’s learning/knowledge strategy, researchers can build on empirical work in contingency and configurational theories (e.g. Thomas, Litschert, and Ramaswami, 1991; Venkatraman and Prescott, 1990) that study fit among constructs and how this fit impacts performance outcomes.

To conclude, we hope this study provides researchers in organizational learning, knowledge management, dynamic capabilities, and absorptive capability with a preliminary map of how these fields relate to one another. There is much to be learned from each domain and we are hopeful that researchers will seek to expand the literature bases from which they draw to advance the field as a whole.

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1The term ‘Absorptive Capacity’ was first used by Kedia and Bhagat (1988) to describe an organization which has ‘cosmopolitan orientation, existing sophisticated technical core and strategic management process,’ which would enable them to effectively manage technology transfers (1988: 568). However, it was Cohen and Levinthal (1989) who actually introduced AC as a defined concept.