Exploiting market-oriented collective learning cycle to leverage competitive advantage at a foreign subsidiary in emerging markets

Purpose The purpose of this paper is to examine how a foreign subsidiary operates in emerging markets and integrates market orientation with organizational learning to achieve a competitive lead. It is an attempt to fill an evident gap in the literature of integrating organizational learning into a market-oriented competitive strategy through using a four-step collective learning cycle at General Motors Egypt (GME). Design/methodology/approach The paper adopts a qualitative case study methodology to thoroughly examine the viewpoints of 90 respondents via in-depth and unstructured interviews with both managers and employees working in a variety of divisions inside GME. An integrative qualitative data analysis approach is used to explore, synthesize, interpret and derive relationships resulting from the collected data. Findings This work advances the theory of organizational learning by testing the theme of collective learning cycle in a real work setting. It presents a real example of aligning market orientation into a collective learning cycle directed toward achieving competitive advantages. Originality/value This study is the first of its kind to investigate the value of the cyclic learning concept from a strategic viewpoint in a multinational organizational context. It enriches the primarily practitioner literature on aligning collective learning into strategy with rich empirical examination of the learning practices of a leading foreign subsidiary. It resolves a gap in the literature regarding how organizational learning and knowledge management processes are aligned to market-oriented competitive strategy. The paper draws a number of critical research issues that call for refinement of the organizational learning cycle theory.