Abstract
The major purpose of this conceptual paper is to integrate the view points of different researchers about leaning organization and competitive advantage and then to develop a proposed model of Learning organization. After the in-depth study of literature we concluded that learning organization is an organization which learns through its members individually and collectively to create competitive advantages by developing a facilitative system through the process of self-development and information sharing by empowering the employees.. The paper also finds some critical factors which must be present in the organization to become a learning organization. These factors are Innovation, facilitative leadership, self-development, empowerment, and information sharing and collective collaboration. The paper tried to explain the similarities and differences among the previously available models of learning organization and proposed a new theoretical model for LO.