An Empirical Study of E-Learning for Improving Value-Chain Activities (2007)

EXECUTIVE SUMMARY The learning process is increasingly perceived as a source of sustainable competitive advantage. However, the literature lacks empirical studies in integrated learning with a focus on the value-chain activities such as production and service functions. This paper is a case study of creating competitive advantage in value chain activities through a learning-based platform as a strategic differentiator. It examines how two business firms create their e-learning systems for strategically enhancing their value added activities. The research methodology employs a fact-based principle that combines quantitative and qualitative methods. Data was collected and analyzed at the corporate level of the subject organizations. A conceptual model of creating a value-chain focused learning solution for competitive advantage has been developed based on the findings. Keywords: E-learning, value chain, strategic differentiator, competitive advantage, performance INTRODUCTION Organizational learning (OL) is increasingly perceived as a source of competitive advantage and playing a growing role in new theories on competitive advantage (Appelbaum and Goransson 1997; Dickson 1996; Hunt and Morgan 1996; Kanter 1989; Senge 1990). Since an organization's learning depends on a particular set of organizational conditions such as competitive environment, culture, structure, business processes and methods of innovation, and it is more difficult to imitate than other corporate resources (Dickon 1996; Nonaka 1991). Learning for competitive advantage can be achieved through understanding the dynamics of competitive forces and the firm's value chain (Hosley et al., 1994). Nevis, DiBella and Gould (1995) define that learning orientations are the values and practices that reflect where learning takes place and the nature of what is learned. As one of the seven learning orientations, the value-chain focused learning places emphasis on learning in value added activities including operations, sales and customer service activities (Nevis, DiBella and Gould 1995). However, the literature fails to capture competitive advantages derived from dynamic OL (Smith, Vasudevan & Tanniru, 1996). Particularly, it lacks empirical studies in how the firm reconfigures and operates its resource base for competitive advantage in value-chain activities under the new conditions through OL (Fiol & Lyles, 1985; Smith, Vasudevan & Tanniru, 1996). Yin (1994) and Schwandt (1997) have suggested that the case study method is deemed proper for a research project that is exploratory in nature. This paper is a case study examining how the firm creates competitive advantage through organizational learning linked to customer services. Two business firms-NCR and U.S. Engine Valve were selected from the 2006 ASTD's1 BEST Awards winners of organizational learning and performance in five countries. Data collection was conducted through the companies' websites, interview and documentation, such as annual reports, archival records, financial reports, electronic databases, and other publications. With focused topics, interviews and/or consultations were conducted with executives and/or their presentations, including James Bauman (NCR University Operations Director, 2001 to 2006). NCR CORPORATION NCR Corporation is a technology company specializing in technical solutions for customer relationships management in various industries such as retail and financial industries. NCR offers a complete range of technology solutions that maximize customer interactions and transform information into enduring and profitable relationships. NCR's products and services include ATMs, Teradata data warehouses, retail systems, IT services, etc. As of 2006, the company has $6,142 billion revenue and 29,500 employees in over 110 countries and territories (NCR, 2007). NCR has a long history in organizational learning. …