This paper argues that it is possible to identify factors which pre-dispose
organizations to adopt effective learning strategies and processes. It is hypothesized that effective OL is associated with: proŽtability, environmental uncertainty, structure, approach to HRM and quality orientation. The study focuses on forty-four manufacturing organizations, and draws on longitudinal data gathered through interviews. The finndings suggest that two of these variables – approach to HRM and quality orientation – are particularly strongly correlated with measures of OL. It is concluded that effective learning mechanisms, with the potential to improve the quality of OL processes, are more likely to be established in businesses where HRM and quality initiatives are well established.