The Dynamics of Organizational Learning
Bernardo A. Huberman
May 15, 1997
This paper presents a dynamical theory of organizational learning that explicitly accounts for both the introduction of new routines into the manufacturing process and improvements in the selection of which procedures to follow. Besides producing a power law of organizational learning with a rate that depends on the effectiveness of the decision procedure, the theory also accounts for observed anomalies characterized by price increases with cumulative output.
Number of Pages in PDF File: 13
JEL Classification: D20, D21, D23
Date posted: July 30, 1997