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During hyper‐competition, disruptive technological innovations germinate causing significant changes in software development organizations' (SDOs) knowledge. The scope and flexibility of the SDO's knowledge base increases; its volatility and the demand for efficiency grows. This creates germane needs to translate abstract knowledge into workable knowledge fast while delivering solutions. The aim of this article is to examine SDOs' responses to such learning challenges through an inductive, theory‐generating study which addresses the question: how did some SDOs successfully learn under these circumstances?

The article takes the form of an exploratory, theory‐building case study investigating seven SDOs' web‐development activities and associated changes in their learning routines during the dot‐com boom.

The SDOs increased their ability to learn …