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Managers in a wide array of organizations are concentrating on knowledge creation as a way to achieve competitiveness. Organizational knowledge, they hope, enables them to bring innovative products/services continuously in the marketplace. However, many are finding it difficult to understand how organizations create knowledge. By using the concepts of individual learning capability and the learning culture of organizations, the present study shows how the sum of individual knowledge does not equate to organizational knowledge. This distinction between individual knowledge and organizational knowledge is an important one, as a majority of studies do not clearly show how individual knowledge is different from organizational knowledge. The study also offers a set of suggestions to managers to develop a learning culture in the organizations.