In this article we first scrutinize how dynamic organizational identity impacts on organizational learning among second-tier keiretsu members. We then proceed to analyze how organizational learning orientations and facilitating factors blend with the dynamic identity to impact on learning. We view organizational identity within the second-tier corporate group members as it auspiciously shifts between one characterized by high self-esteem on the one hand and low self-esteem on the other. It is our contention that this flexible and dynamic identity is always rationally in flux between high self-esteem and low self-esteem acting in concert with organizational learning orientation and facilitating factors. Based on this dynamism, it positively impacts on second-tier keiretsu member's incremental organizational learning. We then proceed to draw implications for the organizational learning theory.