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Purpose

This paper aims to establish an organizational learning system model based on both western and Chinese management thoughts.

Design/methodology/approach

The approach is a conceptual model which is based on research within the field.

Findings

The model consists of nine interrelated organizational learning sub‐systems including “discovering”, “innovating”, “selecting”, “executing”, “transferring”, “reflecting”, “acquiring knowledge from environment”, “contributing knowledge to environment”, and “building organizational memory” ones. The evidences in some famous Chinese traditional cultural classics (including Great Learning, Doctrine of the Mean, The Analects of Confucius, Book of Change, Tao‐Te‐Ching, The Art of War and Chuan‐Xi‐Lu) that support the rationale of the model are described and analyzed.

Originality/value

Several propositions are developed and it is hoped that the model is applicable in both eastern and western business environments.

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