Abstract
The term ‘learning organization’ is used to designate organizations which have been exceptionally successful in the modern business environment of intense international competition. Such organizations are characterized by their ability to adapt rapidly and flexibly to new international business paradigms. The characteristics of the learning organization are well known, but recent paradigm shifts in the business environment dramatically enhance the fundamental competitive advantages embedded in these long established features. The author sets out the main characteristics of and the necessary conditions for effective organizational learning and outlines the competitive advantages to be gained.

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