The Necessary Nature Of Future Firms

Knowledge is considered as one of the most important and competitive resource for sustenance of the organisation (Zack, 1999). It can be compared to the strategic resource that can be used and applied in various frames of the organisation. Experienced managers in the organisations believe that company can receive strategic advantage through knowledge and not the strategies or actions implemented by competitors. Knowledge can be regarded as a strong approach that opens numerous ways of success. It is that weapon that help organisation to evaluate solutions in financial and other professional difficulties.

The Article ‘The Competitive Imperative of Learning’ by Amy C. Edmondson concerns an approach to the execution of a company, in which learning is central. This approach, called execution-as-learning, is regarding the evaluation of the company’s activities, and subsequently finding methods to improve on its failures, as it will provide success in the long term. This is significant, because a perfect execution of company’s activities does not assure lasting success, and especially not in the knowledge economy. Since the knowledge economy is constantly changing, companies should adapt their approaches in regard to the execution to the economy by learning and innovating, so that they will not fall behind. Execution-as-learning is the counterpart of the execution-as-efficiency approach, which does not focus on improving the execution, but being as successful as possible. However, this approach does not assure success in the long run. The execution-as-learning approach consists of four steps, which makes learning a key factor in companies.

A company has a future because it provides an important means of knowledge generation. According to Brown and Duguid (1998), it plays an important role in the development and circulation of complex knowledge in society. Grant (1996) introduces four mechanisms for integrating specialized knowledge as above:

As we head into the future, it important for any business organization to be prepared. The evolution of business technologically is rapid, and it’s important to

For most companies, identifying what a learning organization should be and actually becoming one is tricky at best, impossible at worst. One way that manager's and companies can promote the concept of being a learning organization is to assess whether the company is in need of a short-term fix or whether it is more focused on long-term results. Organizational learning is a long-term activity that will build competitive advantage over time and requires sustained management attention, commitment, and effort. Learning organizations maximize their competitive positions during strong economic times and they prudently train their employees and prepare for change even in turbulent times. As a result, learning organizations and learning

Over the past few years technology has caused significant changes in the way enterprises conduct business.

The learning and growth perspective uses the organization’s resources to adapt to the changing wants and needs of customers. The organizations must ask itself whether it can continue to improve and create value for its customers (Kinney and Raiborn 2013, 11). An organization’s ability to innovate and improve their products or services directly affects its value. An organization can create economic growth by developing new products and services, improving existing products and services, and developing more efficient operations (Kaplan and Norton January/February 1992, 75).

I believe that Organizational learning is an area of expertise within an organizational system that studies models and philosophies about the method an organization understands and acclimates (Vasenska, 2013); Organization-wide on going logic which heightens its collective ability to accept, make sense of, and respond to internal and external change. Organizational learning is more than the totality of the intelligence understood by employees. It involves orderly

Technological change is a fundamental driver of economic development and performance, not only at the level of firms and industries but also economies. Innovation is the organizational process through which new

Change has become necessary for every organisation there is. World is moving rapidly towards better technologies, efficient systems, new techniques, compact profits, different friendlier environments and organisations are always in the race to reach new heights by thriving effectively in this competitive environment (Kotter, 1996).

Organizational learning promotes: adaptability, participation and information openness. Consequently, not only employee performance will be enhanced, but also the increase of organizations effectiveness and efficiency.

To get sustainable competitive advantage, the significant role of knowledge management has been explored. Knowledge management causes companies’ core competencies to become stronger. Therefore, competitive advantage has been more sustainable. Knowledge management is perceived as the development of organizing the intangible asset of a firm. The economic and production level of a company relies more on its brainpower, human capital and invisible competences than its physical assets. The function of each business relies upon the knowledge of its human capital.

Today, the global business sphere is growing swiftly in terms of organizations and management in general. New market trends and strategies are being implemented from old fashion to modern ways, in order to best manage and take control of the organization, along with boosting the employees ' confidence. Ever since the dawn of trade and services, the customer has been the main priority in the promise of a fruitful business. In order to efficiently serve the valuable customer, organizations have opted to allocate more and more cash towards Research & Development in millions of dollars, along with efficiently knowing when to change management in correspondence with the organization 's progress. This has all helped with an advancement in corporate technology and asset growth in the desire of pursuing a healthy growth of profits in the long term.

An organization’s capability to learn and convey that learning into action quickly, is the supreme competitive advantage. The learning organization is the structure that eases the realization of such competitive advantage, it empowers employees, it deepens and enhances the customer experience and cooperation with main business partners and eventually improves business performance. Organizational learning is considered as the suitable process to develop knowledge resources and capabilities/core competencies (human capital, social capital and organizational capital) that engender ongoing values; which in turn yield persistence superior performance; which lead to sustainable competitive advantage within the context of the strategic management.

Companies live and breathe innovation; or, at the terribly least, notice it basic to their success. Such companies are those that others ought to emulate for they recognize that to do business, as Peter Drucker prompt in an exceedingly recent Harvard Business review article, “Every firm—not simply businesses—needs one core competence: innovation.”