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This study collected perceptual data from 162 manufacturing managers to assess whether their perception of organizational learning is related to firm profitability or whether the relationship is indirect through firms’ competitive advantage (quality improvement, cost improvement, cycle-time improvement). The results indicate that managers perceive that organizational learning is significantly related to competitive advantage that, in turn, is positively related to profitability. The results also indicate that the relation between organizational learning and profitability is fully mediated by firm competitive advantage.

This chapter describes practical lessons for leading transformational innovation in industrial firms. These lessons result from theory-building empirical research based on published studies and the authors’ personal observations. These latter are the results of interviews with over 100 senior managers. The research also discriminates between the capabilities for leading core, adjacent and transformational innovations. In practice, each form requires different leadership and skills to ensure success. In the past, firms that use this approach have been described as ambidextrous. However, this oversimplifies the situation rather than considering the continuum of innovation approaches within a firm necessary to ensure long-term sustainability. This is because firms must innovate long-term, deliver ongoing core innovation in their existing portfolio, and evolve their value propositions and business models through adjacent innovation.

We investigate the relationship between job complexity and skill development of adult workers in Europe using the Cedefop European Skills and Jobs Survey. ¹ The results suggest that challenging workplaces in which jobs are designed to include complex tasks that place high demands on workers’ skills also stimulate skill development. Increasing the degree of job complexity has positive and robust effects on the degree of skill development. Skill development is also positively linked to job tenure. The analysis stresses the importance of on-the-job learning and contextual workplace characteristics for adult workers’ skill development.