The role of organizational learning in the opportunity recognition process

Firms often engage in entrepreneurship to strengthen performance and further growth through strategic renewal and the creation of new venture opportunities (Guth and Ginsberg 1990; Stevenson and Jarillo 1990). Recently, many firms have found that organizational learning (OL) can provide a major impetus for such efforts. That is, firms that implement organizational learning practices by configuring themselves to capitalize on the knowledge gained during the course of business have been able to leverage this newly learned knowledge to their strategic advantage (Lei et al. 1999). Organizational learning, in some firms, has become a central component of strategic renewal (Davis and Botkin 1994).