Organizational Learning Literature Research Articles

Emerging Market Firms’ Internationalization Pricing Strategies: The Role of Country of Origin and Organizational Learning

Over the last decade there has been significant interest in international expansion of emerging market firms (EMFs) due to their distinctive patterns compared with developed market firms (DMFs). In this article, the authors develop an analytical model to generate prescriptive insights for pricing strategies when EMFs enter new foreign markets. Grounded in the international marketing and organizational learning literatures, the model accounts for local and multinational competition, the influence of country-of-origin effects, and the role of organizational learning in foreign markets. The results suggest that when an EMF enters a host market with a local competitor, it could generate higher profits even when charging a lower price than the local competitor. Additionally, the authors find that DMFs enjoy greater profitability than EMFs in foreign markets as a result of positive country-of-origin effects. Finally, the authors propose and validate the use of organizational learning as a process EMFs can use to surmount the negative impact of country-of-origin effects and achieve greater profitability than DMFs.

The impact of cloud adoption on talent management: an exploratory study from the “learning organization” perspective

Purpose Cloud computing, a dominant technology, significantly impacts organizations, necessitating talent management strategies for sustained growth. This study aims to explore the impact of cloud adoption on large French organizations through a “learning organization” perspective. Design/methodology/approach Interviews were conducted with business and IT stakeholders from 35 multinational organizations in France. Findings Cloud services have a high impact on large organizations, leading to a demand for cloud-related skills, a power shift from IT to business departments and increased shadow IT activities. Effective utilization requires organizational learning and a change management project, transforming organizations into productive and innovative learning organizations. Originality/value This paper contributes to cloud computing, organizational learning and talent management literature, offering managers a novel approach to handling cloud services.

The influence of organisational learning capability on the organisational use of SMA practices: The mediating role of employee creativity and empowerment

AbstractThis study extends the strategic management accounting (SMA) and organisational learning literature by examining the role of organisational learning capability in facilitating the organisational use of SMA practices. Further, we consider the role of two employee behavioural factors – employee empowerment of SMA practices and employee creativity – in mediating this relationship. Data was collected from 332 accountants in Australian business organisations using an online survey questionnaire, with structural equation modelling applied to analyse the data. The findings highlight the direct and indirect (through employee empowerment of SMA practices and employee creativity) influence that organisational learning capability has on the organisational use of SMA practices.

A Carnegie perspective on intermittent risk taking in entrepreneurship.

Varying risk-taking tendency is an important area of inquiry for the Carnegie perspective. Drawing on organizational learning literature, we develop a model to illuminate the mechanisms that can underlie time-varying risk taking tendency in entrepreneurship. In particular, we delineate conditions under which abrupt risk taking punctuates periods of risk-avoiding behaviors, a pattern that we call "intermittent risk taking." We use serial entrepreneurs whose bouts with risk taking are often depicted as driven by an entrepreneurial itch to illustrate our model. In our conceptualization, decision makers engage in an interplay of experiential and vicarious learning as they move into and out of higher-risk self-employment (i.e., venture creation) with in-between stints in lower-risk wage-employment. Using a computational model to simulate the dynamics of this conceptualization, we find that vicarious learning from satisfied risk-avoiding peers can exert a pull that draws disappointed entrepreneurs into periods of risk avoidance (i.e., wage-employment). However, the moment that the satisfaction of these peers fails to convince, this pull wanes. In effect, the entrepreneur vicariously learns that the grass may not be greener on the other side which then leads them to return into self-employment. The itch for risk taking then recurs not necessarily because risky venture creation offers higher payoffs than risk-avoiding options but because decision makers come to see that risk avoidance may not be a satisfactory alternative either - a conceptualization that adds nuance to prior notions of varying risk tendencies and serial entrepreneurship.

Organizational learning, strategic guanxi networking, co-creation marketing strategy and B2B export performance: evidence from emerging market export venture

Purpose Drawing on the organizational learning and relational governance literature, this study aims to advance a theoretical model to explain the export performance of emerging market export ventures. Design/methodology/approach This study selects quantitative methodology because the main objective of this study is to explore the role of export ventures’ performance (past) on guanxi networking, co-creation marketing strategies and present performance. Findings The empirical evidence suggests that guanxi networking and co-creation strategy can mediate the relationship between export venture performance in the preceding year and export venture performance in the following year. In addition, this study also provides some guidance for emerging market export ventures on how to build a strong guanxi networking and create opportunities for collaboration when the effect of export performance in the preceding year on current performance is absent. Originality/value The authors propose the inclusion of strategic guanxi networking-related factors (e.g. top executives’ ties with business-to-business customers, such as distributors in the host market) in the prior performance-current performance paradigm. The outcomes of this study also contribute to extant organizational learning theory research by integrating preceding performance research with the co-creation theory. The study offers new insights into organizational learning and relational governance from the emerging market perspective.

Organisaation oppiminen sosiaali- ja terveydenhuolto-organisaatioissa – Kollektiivinen reflektio käytännön strategiatyössä

Organizational learning in social and healthcare organizations-Collective reflection during strategizing This research explores how collective reflection during strategizing supports organizational learning. Strategizing evolves over time as strategy practitioners interact with each other, use different strategy practices, and gain more experience of their strategy work. However, this learning process and the meaning of collective reflection within it has not been given attention in previous research. The theoretical frame of the study consists of strategy-as-practice (SAP), collective reflection, and organizational learning literature. In particular, the 4I-framework of organizational learning developed by Crossan et. al. (1999) is utilized. The empirical data were collected by a survey. According to the findings of the study, collective reflection during strategizing supports organizational learning, which, during strategizing, proceeds through microprocesses of intuition, interpretation, integration, and institutionalization. Furthermore, the study shows that the 4I model is suitable for scrutinizing organizational learning during strategizing.

The diffusion of recruit knowledge and core technological change in organizations

PurposeThis study aims to develop a model of learning-by-hiring in which knowledge gains may occur at the time of recruitment but also after recruitment when other incumbent organizational members assimilate a recruit’s knowledge. The author’s model predicts that experienced recruits are more likely to catalyze change to their organization’s core technological capabilities.Design/methodology/approachThe continuous-time parametric hazard rate regressions predict core technological change in a long panel (1970–2017) of US biotechnology industry patent data. The author uses over 140,000 patents to model the evolution of knowledge of over 52,000 scientists and over 4,450 firms. To address endogeneity concerns, the author uses the Heckman selection method and does robustness tests using a difference-in-difference analysis.FindingsThe author finds that a hire’s prior research and development (R&D) experience helps overcome inertia arising from her or his new-to-an-organization “distant” knowledge to increase the likelihood of core technological change. In addition, while the author finds that incumbent organizational members resist technological change, experienced hires may effectively induce them to adopt new ways of doing things. This is particularly the case when hires collaborate with incumbents in R&D projects. Understanding the effects of hiring on core technological change, therefore, benefits from an assessment of hire R&D experience and its effects on incumbent inertia in an organization.Practical implicationsFirst, the author does not recommend managers to hire scientists with considerable distant knowledge only as this may be detrimental to core technological change. Second, the author recommends organizations striving to effectuate technological change to hire people with considerable prior R&D experience as this confers them with the ability to influence other members and socialize incumbent members. Third, the author recommends that managers hire people with both significant levels of prior experience and distant knowledge as they are complements. Finally, the author recommends managers to encourage collaboration between highly experienced hired scientists and long-tenured incumbent organizational members to facilitate incumbent learning, socialization and adoption of new ways of doing things.Originality/valueThis study develops a model of learning-by-hiring, which, to the best of the authors’ knowledge, is the first to propose, test and advance KM literature by showing the effectiveness of experienced hires to stimulate knowledge diffusion and core technological change over time after being hired. This study contributes to innovation, organizational learning and strategy literatures.

Organizational changes approaches to facilitate the management of Industry 4.0 transformation in manufacturing SMEs

PurposeThis paper aims to investigate the characteristics and dynamics of the organizational changes needed to facilitate the management of an Industry 4.0 transformation in manufacturing SMEs and propose an approach to manage them.Design/methodology/approachThis research focuses on a single manufacturing SME in North America, and data were collected using a research intervention method. Data were collected through observation and intervention within the SME over 27 months.FindingsThe research has shown that organizational changes are required in manufacturing SMEs to better manage their Industry 4.0 transformation projects.Research limitations/implicationsUsing the case study method limits the generalization of the results. The organizational changes observed, and their characteristics might be specific to the studied manufacturing. Although results could vary in different contexts, many manufacturing SMEs have similar characteristics to those observed in this study.Practical implicationsThis research provides preliminary evidence of an iterative organizational change management approach that manufacturing SMEs must adopt to facilitate the management of their digital transformation.Originality/valueThis research provides a better understanding of how a manufacturing SME can improve its capabilities to manage its digital transformation by introducing iterative organizational changes. From these results, a link to the organizational learning literature can be drawn and developed upon.

Learn to survive crises: The role of firm resilience, innovation capabilities and environmental dynamism

Exogenous crises, while disruptive, may also present learning opportunities that could affect a firm's viability and performance. In this study, we examine how exogenous crises can constitute learning opportunities and assess their impact on firm survival. In particular, we investigate the role of learning in response to exogenous crises and how firm resilience, innovation capabilities, and environmental dynamism influence this relationship. Drawing from crisis management and organisational learning literature, we propose that these factors can bolster the connection between learning from crises and firm survival. To test our hypotheses, we conduct a nuanced analysis using both regression analysis and Fuzzy Set Qualitative Comparative Analysis (fsQCA) on data from 249 Italian manufacturing Small and Medium-sized Enterprises (SMEs). This approach allows us to simultaneously examine the impact of firm resilience, innovation capabilities, and environmental dynamism on the relationship between learning from crises and firm survival. Our findings offer theoretical and practical insights into the role of learning from crises in a firm's survival. They also highlight the importance of embracing learning opportunities in crisis situations and suggest that how firms deal with crises could be an opportunity to fine-tune their internal processes and thrive in the long run.

In-licensing university technology and firm innovation

This study examines the relationship between university licensing and firm follow-on innovations in the context of therapeutic biotechnology industry. Our theoretical model bridges two research streams in the organizational learning literature—learning-by-licensing and learning-by-failure— to better understand the contingent nature of such relationship. Specifically, it contends that firms that have experienced early-stage innovation failures are better positioned to uncover new knowledge creation opportunities when exposed to the licensed-in university technology. The empirics are based on a panel dataset analysis of a sample of 190 US therapeutic biotechnology firms observed from 2003 to 2011. Our findings provide empirical support to these contentions, suggesting potential interaction effects between the mechanisms of learning-by-licensing and learning-by-failure.

Private Contractors as a Source for Organizational Learning: Evidence from Scandinavian Municipalities

The widespread use of government contracting opens up learning opportunities in public organizations’ engagements with private contractors. However, whether public organizations utilize these opportunities to improve their practices has scant coverage in the government contracting literature. We adapt insights from the organizational learning literature, develop an argument on the learning logic in government contracting, and examine manager perceptions of learning outcomes and whether intra- and inter-organizational and contextual conditions shape the learning outcomes. The argument is assessed against survey data reporting on the municipal park and road managers’ contracting experiences in Scandinavia. The findings show that government contracting in the context of the study is associated with positive learning outcomes and indicates possible tradeoffs between conventional cost-driven and learning strategies. The implications contribute to discussions about the role and benefits of government contracting beyond cost savings in the post-NPM reform era.

Diversification Experiences and Firm Performance in Knowledge-Intensive Industries: The Moderating Role of Absorptive Capacity

ABSTRACTIn this study, we examine the moderation effect of absorptive capacity on the performance consequences of diversification experiences. We suggest that absorptive capacity positively moderates the performance effects of product and international diversification experiences and those of unrelatedness in product and international diversification experiences. An empirical analysis conducted using a longitudinal dataset of Indian firms, from knowledge-intensive manufacturing sectors, for the period 2008–2018, broadly supports our arguments. Findings imply that firms with superior absorptive capacity can acquire and leverage knowledge from their diversification experiences effectively and mitigate the risks of negative transfer associated with unrelatedness in diversification experiences. Findings contribute to the organizational learning literature by examining the role of absorptive capacity in enabling performance outcomes of diversification experiences.

The role of leadership and organizational learning in fostering high performance of tourism firms in Vietnam

This study extends prior work by developing a comprehensive framework examining how leadership and organizational learning facilitate the achievement of high performance in organizations. Following quantitative approach, this study used survey questionnaire to collect data from leaders in the tourism sector. SmartPLS was applied to perform PLS-SEM statistical techniques with 638 responses collected. The findings revealed that high performance of tourism firms was directly and indirectly affected by leadership traits, leadership competencies, complexity leadership and organizational learning. This study has a significant contribution to leadership, organizational learning, and organizational high performance literature by providing a comprehensive framework of the relationships among these phenomena. Significant implications for both theory and practice were provided.

A systematic review of the organizational learning and performance literature

Las organizaciones de todos los sectores se encuentran en una lucha constante por subsistir y hacer frente a los cambios del entorno globalizado y complejo. Donde variables relacionadas con el capital humano que beneficien el desempeño se hacen relevantes para adaptarse. Bajo este escenario el propósito del presente documento es identificar la relación del aprendizaje organizacional y el desempeño, mediante una revisión sistemática de literatura dónde se establecieron criterios de selección e inclusión, así como una estrategia de búsqueda. Dentro de los principales hallazgos se destaca que los países pertenecientes a Asia se han preocupado más por las temáticas, ya que la mayoría de los artículos revisados provienen de ahí y en su mayoría cuentan con un enfoque cuantitativo. Además, algunos estudios agregaron variables como la gestión del conocimiento, innovación, liderazgo transformacional, entre otras. Se concluye que son temáticas importantes, que se han estudiado poco, además, el enfoque cualitativo y mixto, se estudiaron en menor instancia. Lo cual, una investigación de ambas variables tiene potencial de ser novedosa e interesante tanto para la academia, como para empresarios y puestos gerenciales que deseen aumentar el desempeño.

A systematic review of the organizational learning and performance literature

Organizations from all sectors are in a constant struggle to survive and face changes in the globalized and complex environment. Where variables related to human resources that improve performance become relevant to adapt. Under this scenario, the purpose of this document is to identify the relationship between organizational learning and performance, through a systematic review of the literature where selection and inclusion criteria were established, as well as a research strategy. Among the primary findings, it stands out that countries belonging to Asia have been more focused on these issues, since most of the articles reviewed come from there and most of them have a quantitative approach. Furthermore, some researches added variables such as knowledge management, innovation, transformational leadership, among others. It was concluded that these are important subjects, which have been studied very little, and that the qualitative and mixed approach were studied to a lower extent. Therefore, an investigation of both variables has the potential to be innovative and interesting for academy, as well as for entrepreneurs and managers who wish to increase performance.

Learning by supplying to climb the value chain: suppliers’ transition from B-to-B to B-to-C

Purpose Drawing on organizational learning and dynamic capabilities literature, this study aims to explore how suppliers from traditional emerging economies (STEE) can acquire, assimilate and use new knowledge essential for the development of production and marketing capabilities. These capabilities then facilitate suppliers in climbing the value chain from B-to-B to B-to-C. Design/methodology/approach The study adopted a longitudinal and multiple case study design to examine the practices of suppliers operating in a traditional emerging economy setting. This study selected Pakistan textile industry as an empirical setting, which is a predominantly supplier market for global buyers. Data sources entail semi-structured interviews with top executives and senior-level managers in four case firms and secondary data obtained from diverse sources. Findings The study identified transitionary phases of capabilities development that are facilitated by boundary-spanning knowledge acquisition and transformation in a dynamic manner. These capabilities are essential for a supplier’s entry into downstream international markets (i.e. launching its own products/brands in the end consumers’ market). Practical implications The findings could help managers in STEEs to understand the strategic importance of supply chain ties in their learning and capabilities development. It also provides strategic insights on what, how and why involved parties do engage over an extended period of time. Moreover, the findings of this study could help other firms to know and adopt the right type of technology(s) and systems that can help them reduce the technological gap in producing and marketing market-winning products. Originality/value This study advances the recent academic discussion that focusses on learning by supplying and the value-chain movement of suppliers (i.e. B-to-C) from their B-to-B engagements. The findings identified the vital and beneficial role of long-term relationships with global value chain partners in learning and capabilities development that led to value creation in the traditional emerging economy.

Who is Failing? The Impact of Failure of Generalists vs. Specialists on New Product Introductions

Firms learn from the failure of others, but unlike their own failure, the cause of others’ failure is ambiguous, i.e. open to varying interpretation. Varying interpretation, in turn, is likely to lead to differences in what firms learn and the effect it has on their future behavior. This paper investigates whether or not a characteristic of failing firms, specifically their scope, affects observing firms’ strategic choices in the future. This study thus seeks to improve our understanding of a firm’s strategic choice between exploration and exploitation activities following the failure of others, highlighting the role of firm scope or breadth of operations, by drawing on attribution theory and organizational learning literature.

Explaining the Length of the Due Diligence Process in Technology Acquisitions

Drawing on information economics, the theory of the firm and the organizational learning literature, we theorize about the probability of length of the due diligence process. In particular, we examine to what extent uncertainty regarding the value of a target’s resources and differences between the acquiring and target firms lengthen the acquirer’s due diligence effort. Given that we focus on the (target) technological resources we investigate the role of technological uncertainty and absorptive capacity proxying them by the number of pending patent applications of target firms and the technological distance between the two firms’ patent portfolio, respectively. Further, we argue that business relatedness (similarity) reduces the understanding gap. Using a longitudinal data on completed and non-completed technology acquisitions in the UK, we find a significantly positive effect of targets’ pending patent applications on due diligence length that is amplified by technological distance but reduced by business relatedness. Our study contributes to the M&A literature by revealing that higher information gap and uncertainty prolong the due diligence process of the acquirers in the hope of effectively evaluating prospective target firms.

An Examination of the Relationship between Organizational Memory and Absorptive Capacity

The organizational memory (OM) and absorptive capacity (AC) constructs surfaced in management science the same year. Yet, AC has received considerably more attention in the organizational learning literature, even though both constructs are important to understanding and explaining organizational learning and change. We suggest that because both constructs came from cognitive psychology and share the notion of individual memory. In this paper, we make a clear distinction between them. Importantly, we suggest how these two constructs relate to one another, how they fit in the nomological network, and their distinct role in affecting organizational change and learning. In doing so, we generate testable propositions for empirical examination in future research.

The Effect of Acquisitions on Environmental Performance: Evaluating the Role of Primary Stakeholders

This study examines how acquisitions influence corporate environmental performance by integrating theoretical notions from organizational learning and stakeholder literature. We posit that firms can improve environmental performance following acquisitions by learning from their targets. However, this depends on the environmental knowledge and capabilities of the target relative to those of the acquiring firm. We further suggest that change in environmental performance following acquisitions does not only depend on the target firms, but also on the acquirers’ primary stakeholder groups. We test our hypotheses by analyzing longitudinal data on 380 acquisitions of public, US-based acquirers. We find that acquirers with a strong orientation towards customers, employees and suppliers are more likely to learn from their acquisition targets. Furthermore, we show that the reaction of shareholders to acquisition announcements also determines the extent to which firms improve environmental performance following acquisitions. Our results underline the importance of primary stakeholders in achieving environmental performance improvements following strategic actions. With this research, we contribute to literature on M&As by going beyond the implications of acquisitions on financial firm value. We further contribute to stakeholder literature by providing insights on the role of primary stakeholders for organizational learning.