The objective in both perspectives is to explain the competitive advantage of
firms based on the importance of knowledge. According to the organizational
learning perspective, organizational knowledge is created through social
interaction that incorporates individuals' knowledge. In contrast, the dynamic
capability perspective holds that a firm's knowledge creation is explicable
through the interaction of the firm with the external environment. Given that
firms are social structures embedded in broader institutional environments, the
dynamic capability perspective stresses interaction with entities beyond the
organizational boundary. Therefore, creating organizational knowledge assets
requires two mechanisms: one that combines individuals'knowledge within the
organization and another that exchanges knowledge with entities outside the
organization . These mechanisms enhance both internal and
external learning , and they function best with rich social
capital built both within and outside the organization.