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The firm’s structural inertia seems to be a crucial roadblock in continuous improvement efforts. The management paradigm shift required in the transition towards a continuous improvement culture is from individual‐based learning to system‐based learning. Explores the role of an organizational learning mechanism in overcoming the barriers for continuous improvement. Examines the implications of the creation of a parallel learning structure mechanism and its concomitant impact on continuous improvement in a paper mill firm over an eight‐year period. Concludes with the identification and discussion of some theoretical issues.

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