The rapid growth of China's economy has accelerated its energy demand. The exploitation of renewable energy is essential because of limited conventional energy sources, high energy consumption, unstable and escalating oil prices, and detrimental environmental pollutions. Firms in the renewable energy industry are currently facing challenges to maintain competitiveness and productivity while minimizing environmental impacts. The ability to manage knowledge is a key feature in the process for firms to obtain competitive advantages. In addition, interactive learning framework provides a platform that can respond to the need for adjustment in time of great uncertainty. This paper adds evidence to the literature of interactive learning environment based on China context. It examines critical characteristics of interactive learning framework in the renewable energy industry, and then investigates suitable organization forms for knowledge management at different levels of a supply chain. On this basis, this paper proposes suitable organizational forms under different situations for sustainable competitive advantage. (C) 2015 Elsevier Ltd. All rights reserved.