The purpose of this article is to link the "organizational learning perspective" and the "resource-based view" to show how the development of organizational knowledge can lead to a competitive advantage. From the perspective of the resource-based view, the possession of unique knowledge can be seen as a strategic resource which provides the foundation of competitive advantage. From the organizational learning perspective, knoledge is seen as the product of a learning process which ensures continuous adaptation. Propositions are offered which describe the process of developing organizational knowledge as a means of ensuring sustainable competitive advantage