characterizes learning as the exploitation of old certainties and the exploration of new possibilities. He believes that ômaintaining an appropriate balance between exploration and exploitation is a primary factor in . . . survival and prosperityö (p. 71).
Indeed, competitive sustainability requires that organizations both explore the unknown and exploit the known. Examples abound illustrating how double-loop learning has the capability to enhance organizational performance and profitability significantly. Elkington and Burke (1989) found that managers who were forced to respond to environmental issues inadvertently increased profits because more efficient production methods were found when the status quo was challenged. Anecdotally, the successes of Dell Computer, American Express Travel-Related Services, 3M, Wal-Mart, American Hospital Supply, and many other companies offer examples of firms that have reconceptualized competitive recipes, competitive environments, and products and services because their executives engaged in double-
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