| Emergence of the new technological solutions such as | | | | by other competitors in the industry. As such, |
| software, microchips, bioengineering, nanotechnology | | | | businesses must remain open minded and develop |
| resulted in higher emphasis being placed on | | | | adaptive capabilities. The theory of "Peter" still |
| pharmaceuticals, ICTs, and other high tech industries. | | | | remains the milestone of business practices, as the |
| At the same time, low tech sectors have also greatly | | | | essentials for gaining and treating innovation remain |
| evolved over time. For instance, the Portuguese | | | | unchanged - business must gain knowledge to create |
| footwear industry has gone through restructuring | | | | and sustain competitive advantage. |
| process in the 1990s: creative use of micro | | | | Learning organization - is the direct implication of the |
| electronics has been introduced. As a result of this | | | | Schumpeterian's "gales of creative destruction". |
| innovation, industry managed to expand despite the | | | | People in a learning organization must continually |
| raising labor costs. Bioengineering is being widely used | | | | expand their capacity to create the results they aim |
| in the wine industry through fermentation techniques | | | | at. Only under this condition organizations are able to |
| that enhance quality of wine. Bacteria biotechnology | | | | adjust to the situations of rapid change: flexibility and |
| renewed the classic cork technology used traditionally | | | | productivity. There are five basic steps that |
| for centuries. | | | | distinguish learning organization from the traditional |
| In all of these cases, industry had to adjust to the | | | | ones: personal mastery, systems thinking, mental |
| new technological solutions. Companies that employed | | | | model, building shared vision, and team learning. |
| new approaches successfully retained and increased | | | | Combined implementation of these five basic steps |
| their market share, whereas traditional companies | | | | allows companies to respond to the emerging |
| have been forced out of business. It should be | | | | changes in business environment and turn innovation |
| pointed out that the restructuring process had | | | | into a competitive advantage. |
| significant impact on company organizational and | | | | Innovation is a continuous process that cannot be |
| business strategies that had to be adjusted | | | | controlled or predicted with a certain degree of |
| accordingly. | | | | verifiability. In order for organizations to survive in the |
| Undoubtedly, Schumpeterian theory had a great | | | | dynamic 21st century, they must remain flexible and |
| impact on the current business strategies. The major | | | | enhance learning at all stages. Learning organization is |
| lesson to be learned by the companies in business is | | | | the key to a strong position in the dynamic market |
| that innovation can be transferred into a sustainable | | | | place. |
| competitive advantage that cannot be easily followed | | | | |