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Two critical success factors within the retail industry are quality management practices and continuous learning. Presents empirical evidence suggesting a link between a set of retail management practices and potential learning outcomes. Retailers need to focus on developing a market orientation that is linked to structures, processes and systems necessary to build learning organizations. All interactions with customers and other key stakeholders can lead to a potential learning outcome. To develop and maintain competitive advantage, retailers need to share information with their key stakeholders, build long‐term alliances and link market orientation with a learning orientation. It was found that all levels of employees need time to reflect on and review information critical to their action outcomes and the action outcomes of their key stakeholders. Retailers must capitalize on each potential learning experience by reflecting on, documenting and transferring knowledge, and creating a climate which facilitates learning through the effective exchange of knowledge across all sections of the organization.

Reports on a theoretical framework based on Senge’s principles and the Malcolm Baldrige National Quality Award (MBNQA) criteria. Qualitative data were gathered from five Australian companies that had established practices in the TQM field. Multiple cross‐case content analysis was undertaken to evaluate the proposition that “TQM and the Learning Organization are mutually dependent”. Our major finding is that TQM principles and concepts underpin the evolution of the learning organization. The implication is that managers that are involved in TQM do not need a new mindset or paradigm called “learning organization”. Organizations need to recognise that their continuous improvement activities as part of the TQM philosophy have created their “learning organization”.

Discusses that the only true source of sustainable competitive advantage seems to be by building learning organizations. Says that, in order to ensure the survival of their organizations, managers need to focus on individual and organizational learning, the development of a shared vision, an awareness of the internal environment and the external context, and that a key requirement in this process is the ability to surface and test the mental models of people throughout the organization. Also one of the ways of testing mental models is within the context of action. States that exploration of effective action is examined using the Rosenthal stage. Uses an action‐based method using a miniature stage. The Rosenthal stage involves a five‐step process of surfacing, externalizing, reflecting, revealing, and active dialogue of people’s perceptions of their organization. Presents a case study which demonstrates the surfacing of a mental model of a senior manager in a multinational communications organization. The power of the Rosenthal stage enabled this manager, after one session, to gain contextual insight into the breadth of his organization, and the value of his contribution.

Focuses on an attempt to determine whether or not there is a link between TQM and learning organizations. Data from three TQM companies are tested against a series of building blocks for developing learning organizations. Total quality management tends to create the environment necessary for organizational learning to occur. The learning organization creates competitive advantage by adapting to changing environments, continually improving and being able to absorb new concepts and innovations.

Questions the difference between TQM and organizational learning, including characteristics and problems encountered – states that TQM is a vehicle for organizational learning. Uses Australian organizations to provide examples of this link. Examines systematic problem solving, experimenting with new approaches, learning from experience and the transfer of knowledge within these three companies. Concludes that TQM is part of becoming a learning organization, but that most TQM initiatives do not lead to organizational learning.

Notes that strategic alliances provide opportunities for partners to come together and create greater value rather than a basic commercial transaction. Proposes a conceptual framework for strategic relationships and suggests this can be adapted in internationally‐focused or domestic‐oriented alliances. Posits that this framework refers to “learning alliances” aimed at establishing a mutual relationship based on co‐operation, not competition. Shows that organizations develop this relationship through a process which involves elements such as creating a learning environment and having a systemic perspective. Explains that this learning environment enables alliance partners to build a relationship which enhances the strategic fit between the companies for the long term. Discusses the belief that the future success of strategic alliances will be held within the realms of co‐operative learning ‐ learning alliances.

Continuous learning is one of the key differences between successful and unsuccessful businesses operating in the same environment. The successful business is organized to take advantage of the learning opportunities of each employee and to share insights quickly and effectively throughout the business. And in retail every encounter with a customer is an opportunity for learning. A case study of a major Australian retail hardware chain attempted to identify the characteristics of a learning organization.