The Dynamics of Organizational Learning
13 Pages Posted: 30 Jul 1997
Date Written: May 15, 1997
Abstract
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.
JEL Classification: D20, D21, D23
Suggested Citation: Suggested Citation
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