Analogies in Organizational Learning and Innovation

Abstract

This study addresses an unresolved question in the organizational learning and innovation literature: How do adaptive organizations generate novelty? To address this question, the study posits that analogical reasoning is consistent with many important behavioral features from the behavioral theory of the firm (BTOF) and that analogy is a core mechanism through which bounded-rational decision makers generate novel ideas in an organizational setting. Next, the study developes a notion of organizational analogy. Finally, the study offers a process model of how organizational analogy generates innovation. As a whole, the paper will advance the literature on learning and innovation and open a promising avenue for future research on organizational analogy.