Adaptation to creation: Progress of organizational learning and increasing complexity of learning systems

A brief survey of organizational learning literature shows that understanding of how organizations learn has proceeded along two streams: one based on progress function or learning/ experience curve effect, and the other as a process facilitating organizational adaptation and growth, and development and sustenance of competitiveness. This latter stream presents three phases of evolution: initially it considered learning as adaptation through search and problem solving, followed by attempts at conceptualization of learning as an organization-wide, holistic phenomenon, and finally focusing on development of systems, processes, training tools, capabilities, etc., for building learning organizations. Learning is now understood as the development of organizational generative capabilities with a wide response range. The article identifies that the understanding of organizational learning from learning as adaptation to information processing and knowledge creation systems capable of generating a wide range of response patterns exhibits an underlying link of increasing complexity. This in turn holds an interesting correspondence to Boulding's hierarchy of systems. The article discusses the implications of this correspondence for research and practice. Copyright (C) 2001 John Wiley & Sons, Ltd.