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.
Research limitations/implications
This study provides scholars and practitioners alike with a real scenario on how and why a four-step organizational learning cycle functions as a building block to generate a competitive advantage. It also discusses the elements of collective learning that are not captured by the four-step collective learning cycle. Factors facilitating market-based organizational learning are also explored. However, the results generated are contingent on the investigated case study circumstances, which are limited in generalizability.
Practical implications
The paper addresses a set of directions through which auto assembly firms leverage both collective learning practices and knowledge-driven strategy to gain competitive advantages. The GME paradigm indicates how a firm can use collective learning not only to respond to an internal need for change but also to react to external market forces and constraints.
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.
Institutional Distance and Foreign Subsidiary Performance in Emerging Markets: Moderating Effects of Ownership Strategy and Host-Country Experience
