Organizational Learning Literature Research Articles

No Firm Is an Island: The Role of Population-Level Actors in Organizational Learning from Failure

When a serious failure occurs within a population of organizations, members of individual organizations in the population attempt to learn vicariously from the event so that future failures may be avoided. This organization-level vicarious learning process has been extensively studied in the organizational learning literature. However, following a serious failure in one organization, a parallel process also plays out at the population level as population-level actors draw lessons from the failure and exert influence over organizations in the population in the interest of preventing future failures. Such population-level processes may exert powerful influences on organization-level learning, but have only begun to be explored in the literature. This paper begins to fill this gap by theorizing and studying the role of population-level actors in organizational learning from failure within and across organizational populations. It examines these issues in a global sample of large airlines operating between 1981 and 2011. The findings indicate that population-level forces are a major driver of improvement and learning in members of organizational populations—specifically, that the monitoring strength and activity of population-level actors influence the rates of organizational learning from failure within their populations.

Permanent Exit or Temporary Break? Organizational Experience and Market Reentry after Initial Exit

This paper investigates the strategic firm decision of market reentry after initial exit. Building on the organizational learning literature, I examine the role of a firm’s pre-exit focal market ex...

Innovation failure and innovation direction change in entrepreneurial firms

Entrepreneurial firms are recognized for their posture of innovativeness and experimentation, risk taking, and pro-active pioneering of new markets, which may lead to more frequent innovation failures. A failure is an unwelcome result, often stigmatized and buried, but also can bring valuable experience. Although there is theoretical evidence suggesting that failures signal organizational needs to change, to date we are not aware of any rigorous empirical studies that address whether organizations change their extant technological trajectories or innovation directions when they experience innovation failures. How do entrepreneurial firms learn from prior failed innovation? To answer this question, we build on organizational learning and entrepreneurial innovation literature, and propose that types and timings of innovation failures can shape entrepreneurial firms' innovation direction. Focusing on entrepreneurial pharmaceutical firms, and using firm-technological class level innovation activity to capture their changes of innovation direction, we develop and empirically test two central arguments. First, entrepreneurial firms shift away from extant technological trajectories when exploratory innovation fails, while strengthening the innovation activities in extant technological trajectories when exploitative innovation fails. Second, failure timing matters: the later these technological failures are recognized, the stronger are the negative effects of exploratory failures, and the weaker are the positive effects of exploratory failures effects. Theoretical and practical implications are addressed.

Decision Weaving: Effective Strategy Formation in Entrepreneurial Settings Research-oriented

Strategy formation is central to why some firms succeed in entrepreneurial settings while others do not. Prior research suggests that executives effectively form strategies through actions to learn about novel opportunities, and thinking to develop a holistic understanding of the complex set of activities that must fit together. But it remains unclear how effective strategists actually combine these processes. So, we ask: How do executives effectively form strategies in entrepreneurial settings? Given limited theory and research, we use theory- building case methods to take a rare look at how 3 matched pairs of firms in different two-sided markets attempt to form strategies. Our key contribution is a novel and effective strategy formation process: Decision weaving. It includes: sequential focus to intensely devote resources to learning about strategy in a focal domain and then moving to a new one at learning plateaus while simultaneously using stepping stones in background domains to make progress without distraction and maintain a holistic view. Our results have contributions to the organizational learning, managerial cognition, and strategy formation literatures. More broadly, we contribute a portrait of a cognitively sophisticated, yet realistic strategist.

Supply chain organizational learning, exploration, exploitation, and firm performance: A creation-dispersion perspective

We introduce and empirically test the creation-dispersion model of supply chain organizational learning to align learning orientations in a supply chain context. Our paper seeks to advance the knowledge on supply chain organizational learning by showing that four distinct supply chain learning orientations (team, learning, memory, and systems), previously studied only as a collective, can be parsed strategically. We parse these four learning orientations into creation capacity (team and learning orientations) and dispersion capacity (memory and system orientations). The creation and dispersion capacity can enhance exploration (long-term) and exploitation (short-term) practices respectively in supply chain organizations. We used a survey questionnaire to collect data from 128 respondents belonging to firms of various sizes and different industries. We find that creation capacity is positively associated with exploration and indirectly associated with exploitation through exploration. Dispersion capacity is associated with exploitation and indirectly influences market share and profitability through exploitation. The findings demonstrate that creation and dispersion-based combinations of supply chain learning orientations coalesce to influence exploration and exploitation practices. We discuss the implications for supply chain organizational learning literature.

Critical Reflexivity of Communities on Their Experience to Improve Population Health.

Although community capacity has been prominent in the public health literature for nearly 20 years, the field has only operationalized a few dimensions. An intriguing dimension of capacity is a community's ability to critically reflect. On the basis of previous research as well as theoretical and practical insights from management and organizational learning literature, we offer a process framework for critical reflexivity practice in community. The framework draws on ideas regarding cognition and agency, praxis, as well as the transformative learning model to conceptualize how reflexivity happens as an emergent community process. The implication is that reflexivity is a community-level process of making meaning of experiences that drive a common narrative. Inclusivity and establishing consensus are paramount, and can be difficult in light of power dynamics and consideration of dissenting voices and different experiences; enlightened self-interest and creating conducive spaces for dialogue are key in this process. Strengthening communities' ability to gain and employ collective wisdom from their experience will also build their overall capacity for population health improvement.

Trading off learning and performance: Exploration and exploitation at work

Employees are increasingly given control over how they learn, and their choices for training are diverse and varied, yet employees must balance competing demands. On one hand, they are expected to be increasingly efficient in their current job duties – on the other hand, they are expected to develop new skills and competencies that enable them to adapt and respond to changing job demands. Drawing from the organizational learning literature, we propose a model of worker and work characteristics that inform choices between two mindsets related to learning at work. The first mindset is exploration, or the pursuit of learning outside one’s current knowledge domain; the second mindset is exploitation, the refinement/deepening of one’s existing knowledge stock focusing on the task at hand. We further propose that these strategic choices, or trade-offs, influence employee learning and performance in unique ways, with different implications for both routine and adaptive performance. Finally, we incorporate the notions of feedback loops and risk assessments that influence ongoing decisions between exploration and exploitation mindsets. Recommendations for future research and extensions of the theoretical model are also proposed.

Defining a culture of assessment in student affairs assessment: A delphi study

The purpose of this study was to understand how student affairs assessment experts define a culture of assessment in student affairs. The extant literature has provided ample guides for the mechanics of student affairs assessment, a clear rationale for why assessment should be conducted in student affairs, and even suggests that cultures of assessment should be developed as a means for implementing assessment. However, while some scholars define and others describe this culture of assessment, a common, empirically based definition does not exist. The lack of an empirically based definition prevents important scholarship about cultures of assessment in student affairs and limits how practitioners can go about fostering and sustaining such a culture. This Delphi study engaged experts in a systematic process of developing a definition for student affairs culture of assessment. The results include a definition as well as characteristics describing a culture of assessment in student affairs that can promote further investigation of this important topic. The findings also suggest connections with learning organization and organizational culture literature that can strengthen the student affairs assessment literature in studying this construct.

A systemic approach to processes of power in learning organizations

PurposeThe purpose of the paper is to introduce a systemic approach to organizational learning “triple loop learning” (TLL) that addresses processes of power. Three equally important foci in our TLL are processes of design, processes of debate and processes of power. The focus on power aims to shift “power over” (power as domination) to “power to” enact empowering designs, “power to” co-develop responsible decision-making and “power to” transform our relations with each other and with life on Earth.Design/methodology/approachThe organizational learning literature is reviewed in the context of power dynamics and its shortcomings are highlighted. The authors introduce their understanding of TLL, and how it engages with power dynamics in organizations.FindingsPeter Senge’s conceptualization of systems thinking is unable to recognize processes of power in organizations and offers limited support to transformative learning. Conceptualizations of TLL aim to enhance learning in organizations but none satisfactorily address the processes of power. The learning organization literature as a whole does not satisfactorily address processes of power or reflect our way of envisaging “looping between loops of learning” in TLL to better design, better debate and better develop relationality in the social fabric of organizations.Originality/valueThe authors introduce an original approach to TLL that directly addresses the processes of power in organizations. It offers researchers, learning facilitators and practitioners of the learning organization a way to engage with the processes of power without neglecting other important organizational and environmental issues.

The ‘How’ of Multilevel Learning Dynamics: A Systematic Literature Review Exploring How Mechanisms Bridge Learning Between Individuals, Teams/Projects and the Organization

The organizational learning literature recognizes that learning is a multilevel phenomenon that occurs between the individual, team and organizational levels. Existing literature has begun to identify linking mechanisms between these levels, but the research explaining how these mechanisms operate remains scarce. There is a limited understanding of the learning paths and connections between the individual, team and organizational levels. Using a systematic literature review, this paper synthesizes the research on multilevel learning to: (1) classify primary and less researched mechanisms enabling multilevel learning, and (2) explain how and in what direction these mechanisms operate to link the levels. We then propose a framework to summarize our findings. We investigate this phenomenon in both organizational and project‐based contexts due to the unique temporal and structural learning challenges of the latter. Future research directions are proposed for scholars who wish to further contribute to this important and growing field.

The relationship between strategy making and organizational learning

Purpose – This paper discusses the role of strategy making in organizational learning. By linking organizational learning and strategyas-practice literatures, the objective of this research was to analyze how intertwined the cognitive process and strategic activities are in organizational learning. Design/methodology/approach – The metodology used is a longitudinal qualitative single case study of one of the largest Brazilian companies in the power industry. The unit of analysis is the firm’s growth strategy through mergers and acquisitions from 2003 to 2012. Findings – The findings show that organizational learning involved four sequenced causal flows in which specific types of strategic activities contributed directly or indirectly to learning loops. Originality/value – Our main contribution is to show that the implementation of strategic activities is the key to strategic renewal.

R&D subsidies & external collaborative breadth: Differential gains and the role of collaboration experience

External collaboration breadth is important for firms to acquire the knowledge needed to innovate. In this paper, we combine cross-sectional and longitudinal data from the Spanish Panel of Technological Innovation Survey (PITEC) to examine the indirect impact of R&D subsidies on firm external collaboration breadth. We contribute to understanding of the indirect impacts of R&D subsidies by first providing strong evidence of an economically significant average positive impact of R&D subsidies on firm external collaboration breadth. Second, our results advance understanding of the differential impacts of R&D subsidies by revealing the vast heterogeneity of the impact at the firm level, where approximately only half of treated firms experience a positive collaboration impact from R&D subsidies, while the remainder experience no impact or a negative effect. Finally, we advance understanding of the characteristics explaining the differential impact of R&D subsidies on external collaboration breadth by utilising the organisational learning literature to demonstrate the important role of firm collaboration experience.

Perspectives on Organizational Learning

The primary objective of this article is to review the literature of organizational learning from different perspectives. These perspective form four different conceptual streams: cognitive, cognitive-behavioural, social constructive, and social cognitive. Of the four perspectives, social cognitive perspective approaches organizational learning in a holistic way connecting cognition, social construction and behaviours. This perspective also explains the process by which organizational learning happens in an organization. Further, this study reveals that social cognitive perspective enriches the domain of organizational learning with substantial empirical contribution.

ENHANCING THE LEGAL PROFESSION’S CAPACITY FOR INNOVATION: THE PROMISE OF REFLECTIVE PRACTICE AND ACTION RESEARCH FOR INCREASING ACCESS TO JUSTICE

Recent national reports have documented growing justice gaps in Canada and have identified a compelling need for innovation in the justice sector to better meet the needs of the public. Nurturing a greater capacity for individual, collective, and critical reflection will ensure the legal profession is much better equipped to respond creatively and strategically to a lack of equal access to justice. In this article, I explore the generative and transformative potential of reflective practice – an important professional competency in other professional disciplines, but under-theorized in law, and action research – a dynamic and flexible form of qualitative research for supporting a culture of innovation in the legal profession and the justice system. Reflective capacity is a crucial enabler of innovative thinking, and it undergirds approaches to encouraging individual and systems change emerging from the organizational learning and innovation literature. An enhanced capacity for reflection will also support more generative and “future-forming” dialogues within the profession and between justice system stakeholders. Furthermore, systematically reflecting on disorienting empirical data about the troubling state of access to justice could develop an “access to justice consciousness” in law students and legal professionals, leading to a stronger willingness to take action to narrow the justice gaps. Introducing action research as an unpretentious and effective enabler of profound transformation and innovation in individual and organizational practices offers significant promise for tackling the “wicked problem” of access to justice. Practical illustrations of action research as an enabler of innovation drawn from legal practice are provided.

Learning Effects of Domain, Technology, and Customer Knowledge in Information Systems Development: An Empirical Study

This study examines learning effects (i.e., the effects of prior experience) in information systems development (ISD). ISD is characterized by disparate tasks, teams, and levels of project complexity across projects. These features challenge our understanding of how learning effects occur in the ISD context. Drawing on the theory of transfer of learning, this study examines how ISD project teams learn and under what conditions the learning effects are stronger or weaker. We find that ISD project teams’ experience in prior projects translates into performance gains for the current ISD project when the prior and current projects share the same domain, technology, or customer knowledge elements—domain, technology, and customer being the most essential knowledge types for ISD. Moreover, we find that the learning effects of domain, technology, and customer knowledge are substitutive for one another and that these learning effects become stronger or weaker depending on the extent of ISD projects’ team and task complexities. The study makes significant contributions to the ISD literature on learning effects and the roles of domain, technology, customer knowledge, and project complexity, as well as to the general organizational learning literature. It also provides important managerial insights into practical concerns such as project staffing and knowledge acquisition for ISD organizations. The online appendix is available at https://doi.org/10.1287/isre.2017.0713 .

Exploring and yet failing less: learning from past and current exploration in R&D

Exploration is both an important part of a firm’s innovation strategy and an activity that involves a high degree of uncertainty. This article investigates a duality in the exploratory component of R&D activity with regard to innovation failure: while exploration is likely to increase firms’ exposure to failure, it might also provide learning opportunities to reduce failure. Our study contributes to the innovation management and organizational learning literatures by demonstrating the value of exploratory R&D for enabling two types of learning mechanisms. The first, experience-based learning, is based on the learning opportunities derived from accumulated experience in exploratory R&D: it involves improvements to procedures associated with experimentation and provides guidance for current exploration and to navigate the search space. The second, inferential-based learning, is based on the learning opportunities derived from current exploratory R&D efforts, which are associated with improved interpretation of ill-defined problems and timely responses to unstructured information. We draw on a longitudinal data set of 2226 Spanish manufacturing companies and show that, when past experience is associated with current exploration, innovation failure in the conception phase is reduced. We also find an inverted U-shaped relation between current exploratory R&D and innovation failure, in both the conception and implementation phases of innovation activities, showing that increasing levels of investment in current exploration activities attenuate the initial positive association between exploratory R&D and failure.

Taking Stock of the Ability to Change: The Effect of Prior Experience

In aiming to understand why teams differ in their ability to adapt to new contexts, I explore the extent to which prior experience with a previous practice impacts the ability to properly execute a new organizational practice. I generate predictions by integrating the organizational learning and path dependency literatures. To test my predictions, I use internal data from 294 stores of a large retail chain that implemented a new restocking process in its stores. Initial findings show that, on average, stores dramatically improve execution performance over time, and employee experience with the prior practice moderates the effect. Stores where employees have greater exposure to the old practice perform significantly worse than other stores at the outset—consistent with the notion of “competency traps.” However, these stores also learn more quickly, which I suggest may be the result of increased efficiency in their coordination and communication when learning the new process.

Interest Differences and Organizational Learning

This paper argues that interest differences are the key to understanding the nature of organizational learning and the processes by which it occurs, yet the concept of ‘interest’ is very much underdeveloped in the organizational learning literature. Drawing on the work of Habermas and Lukes, the paper proposes a model of the relationship between shared learning and interests and elaborates on it using a case study of pay and performance management change at a large Australian finance-sector company, DollarCo. The case study provides many examples of shared learning associated with both common and competing interests, including a great deal of learning resulting from tensions between DollarCo’s economic and technical interests, on the one hand, and employees’ ontological interests on the other. By doing so, it underlines the value of foregrounding interests and interest differences in studies of workplace and organizational learning and raises questions about the extent to which many published accounts of so-called ‘organizational’ learning are actually describing ‘shared interest group’ learning.

Organizational Search and Novelty-centered Business Model Design

This study explores how to promote novelty-centered business model design through intra-industry search and extra-industry search with the assistance of combinative capability and stakeholder management capability. Based on organizational learning and business model literature, 6 hypotheses are proposed and examined with data from 204 firms in China. The results show that intra-industry search has an inverted U- shaped effect on novelty-centered business model design, while extra-industry search has a positive effect. Combinative capability strengthens the effect of extra-industry search on novelty-centered business model design. Stakeholder management capability strengthens the effect of extra-industry search while weakening that of intra-industry search. Our findings enrich evolutionary learning stream of business model literature by identifying different roles of intra-industry search and extra- industry search as the antecedents of business model design and their fitness with different types of dynamic capabilities.

Analogies in Organizational Learning and Innovation

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.