Learning organizations possess strong abilities to evolve, transform, and adjust to the rapidly changing environmental factors, sharing this knowledge among members at different levels interactively via computing and networking to address issues. Numerous past studies suggest that a learning organization plays a crucial role in enhancing the competitive advantage of organizations.
Objective
Therefore, this study explores how innovation and organizational commitment influence the relationship between learning organizations and competitive advantage.
Methods
The research adopts a positivist philosophy, a quantitative method, and a descriptive-explanatory design. Data was collected from 265 employees at the Awash Bank headquarters through a self-administered questionnaire using simple random sampling. Analysis was conducted using PLS-SEM via Smart PLS software.
Results
Findings revealed strong positive relationships between learning organization, innovation, and competitive advantage. Innovation was found to partially mediate the relationship between learning organization and competitive advantage. Additionally, organizational commitment significantly moderated the link between innovation and competitive advantage.
Conclusion
The results validate that innovation greatly improves competitive advantage, whereas organizational commitment amplifies its impact and the mediation process, especially in Ethiopia’s evolving banking industry. Overall, the research emphasizes learning organizations as a strategic basis that combines learning, innovation, and commitment for enduring competitive advantage.
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