Organization learning is one of the most important means for business to effectively respond to the external and internal changes.There are five types of organization learning: exploration,experiment,capability adoption,competitive intelligence and knowledge diffusion.Using structural equation modeling to analyze data collected from 126 Chinese companies,the study finds out that,in a dynamic environment,organization learning is the most important source of competitive advantage.Application of information technology will contribute to a company's competitive advantage indirectly,mainly through the enhanced learning ability of employees.Among different types of companies in China,multinational and joint venture companies show higher level of organization learning capability and IT application than that of state-own enterprises.Private companies demonstrate stronger capability in exploration learning.