Organizational Learning and Its Influence on the Lean Startup: A Unique Lens from Which to View this Popular Entrepreneurship Methodology

Abstract

Organizational learning, a broad and diverse field that draws on influences from multiple disciplines, embodies varied definitions, ranging from cognition to process. It represents a dynamic process in which a firm acquires, embeds, transfers, and exploits knowledge. This paper explores three provocative questions specific to organizational learning and entrepreneurial ventures(1) what areas of organization learning provides an underlying foundation for entrepreneurial ventures in exploring and advancing their innovations; (2) what areas within entrepreneurship embrace organizational learning concepts; and (3) how does organizational learning support the hypothesis-driven methodology seen with the lean startup. Multiple organizational learning concepts apply to the entrepreneurial venture. Notable are the concepts of ambidexterity involving exploration versus exploitation; the practices of experimentation, distant search, learning from failure, and adaptation; the influence of behavioral theory and psychology; and the 4Is learning framework that fosters a “feed-forward”/”feedback” tension leading the advancement of innovations within a firm and beyond. The opportunity recognition process and the lean startup methodologies represent two entrepreneurship areas to which organizational learning applies. Specific interest relates to the lean startup, which draws on multiple organizational learning concepts, including Argyris and Schon’s theory-in-use and double-loop learning processes, experimentation, learning from failure, and adaptation. The methodology’s impact on the firm to advance its innovative products and business models within the firm and its external venture ecosystem is of further interest. This paper posits that one can use an organizational learning lens vis-a-vis Crossan’s 4Is framework and “feed-forward”/” feedback” dynamic. Such offers a fascinating opportunity to explore questions concerning the lean startup’s impact within the organization and its local venture ecosystem, its journey (vis-a-vis the “feed-forward”/” feedback” process, and associated outcomes. Further, it proposes a model that integrates lean startup practices situated within the 4I’s model that considers the “feed-forward” and “feedback” processes and the influence of endogenous and exogenous influences.