Organizational Learning Literature Research Articles

Experience and Learning: What Does it Mean for Venture Capital Firms?

This study examines how past success and failure experiences shape organizational forecast accuracy, and the extent to which learning from past experience is contingent on organizational size. We rely on the organizational learning theory of the firm and decision-making literature to formulate our hypotheses. We test our hypotheses on a unique dataset of venture capital firms’ forecasts of early-stage investments. We show that both success and failure distinctly influence VCs’ forecasting accuracy, and that bigger venture capital firms may learn more from failure than success, unless the level of success is high. Our findings advance organizational learning, forecasting and venture capital literature as well as bring novel insight to practice.

The academic non-consultation phenomenon revisited: a research agenda

PurposeThe purpose of this paper is to revive interest in the question, never definitively answered, which Stephen Watson raised in the title of his 2000 paper, “Why is it that management academics rarely advise on their own institutions?” It is argued that finding the answer to the question would not only be interesting in and of itself but could also lead to valuable contributions to the theory of the learning organization.Design/methodology/approachInspired by Watson’s original paper and a new interview the authors made with him in 2017, this paper discusses the possible explanations for why management academics rarely advise on their own institutions and sets out an agenda for future research.FindingsThe authors suggest a simple three-way categorization of the nine hypotheses identified by Watson (2000), grouping them by the themes of management knowledge, motivation of higher education institution (HEI) managers and incentives for academics to engage. This study proposes an integrated framework to illustrate how these three categories of hypotheses are connected and can jointly explain the observed phenomenon. The study provides theoretical underpinnings for the most promising hypotheses and suggests an agenda for future research, emphasizing the potential of such research to contribute to the learning organization field.Research limitations/implicationsThis paper should not be interpreted primarily as an attempt to provide support for any particular hypothesis. Rather, the principal aim of the authors is to sketch out a future research agenda and inspire others to contribute empirical evidence that can help shed light on the paradox of why management academics rarely advise on their own institutions.Originality/valueThe theoretical contribution of this paper is to revive the important research topic of “why management academics do not seem to be widely engaged in advising university managers” (Watson, 2000, p. 99) and to introduce a research agenda that can help realize the potential contribution of this topic to the learning organization literature. The practical contribution is to re-address the difficulties of HEIs in becoming full-fledged “learning organizations” and to suggest that HEI managers re-examine the possibilities for using hitherto untapped internal expertise.

Exploring knowledge creation processes as a source of organizational learning: A longitudinal case study of a public innovation project

The purpose of the study is to reestablish the link between theories of organizational learning and knowledge creation – theories that in research, have been pursued as independent themes for almost two decades. Based on the literature review, I build a framework that proposes how the two streams of literature complement each other, how they are similar, and how they are different. To understand the framework’s empirical applicability, I utilize it as a theoretical lens to study an innovation project in a Danish public service organization. Based on a longitudinal and participatory research strategy, I build eight propositions that are used to discuss and extend the organizational learning and knowledge creation literatures and to justify the framework’s applicability. Finally, I present the managerial implications and the conclusions of the study.

Learning advantages of newness: A reconceptualization and contingent framework

A growing body of research suggests that new ventures (companies less than 6 years old) have advantages over established firms in terms of learning when internationalizing their operations. Yet, the concept of “learning advantages of newness” appears to be at odds with some central concepts in the organizational learning literature, probably because it is grounded in several assumptions that are open to debate. In this paper, we attempt to reconcile this incongruity by identifying the underlying assumptions of this concept, reconceptualizing the notion of learning advantages of newness, and showing that these advantages are contingent on several environmental, organizational, and strategic variables.

A Study of Accountability in Two Organizational Learning Frameworks: Why Accountability for Learning is Critical

In this paper we examine the complex relationship between accountability and organizational learning through a case study with the UK Royal Air Force (RAF). Accountability is a complex and contradictory construct that has both positive and negative implications for organizational learning. Within the same organization we observed positive effects of accountability in one organizational learning system, and negative effects of accountability in another. This case study adds to the organizational learning and accountability literatures, showing that accountability to hierarchy, rather than preventing learning, can actually promote effective learning, making it more likely that people will report problems quickly and accurately and take follow‐up action. This only applies if the learning objectives align with the broader accountability framework, and if reporting on failures will enhance individual reputation. If not, then people will tend to avoid reporting negative events in order to avoid punishment and reputation damage. Accountability to hierarchy is only negative if it conflicts with the learning objectives.

How Outcome Agreement and Power Balance Among Parties Influence Processes of Organizational Learning and Nonlearning

The dominant model of behavioral learning may not apply to organizations because it assumes that the people involved agree in their outcome assessments of actions and have relatively equal power to engage in joint learning. We relax these assumptions of consensus and power balance in order to apply the model to organizational (as opposed to individual) learning. We examine what happens when parties from different organizational units and levels engage jointly in learning from recurrent events. We examine behavioral learning as recurrent cycles of action–outcome assessment–response on similar tasks (i.e., recurrent events) over time. We observe different patterns of organizational learning (adaptive and dialectical) and nonlearning (persistent and compulsory behavior) in our 8-year real-time field study of the recurrent events while integrating a large health-care system. These four processes are interdependent and explained by just two contingencies: (1) agreement on outcome assessments and (2) power balance among the parties engaged in actions. These findings expand our repertoire to include processes that heretofore have not been considered in the organizational learning literature and explore how they change with different degrees of agreement and power among parties; that is, how an imposition of power by more powerful parties leads to nonlearning, while an openness to conflict and an empowerment approach enables organizational learning.

How the concept of organizational unlearning contributes to studies of learning organizations

PurposeThe first purpose of this short essay is to respond to Howells and Scholderer’s (2016) harsh critique that organizational unlearning is a superfluous concept. The second purpose is to establish a relationship between organizational unlearning and the learning organization.Design/methodology/approachTo respond to Howells and Scholderer’s critique, the author carefully examines their arguments – focusing on their comments on the author’s previous publications – and checks whether the arguments are logical and coherent. To establish a relationship between organizational unlearning and the learning organization, the author draws on his own research of international joint ventures in China.FindingsHowells and Scholderer seriously miscited the ideas in one of the author’s publications, and their main arguments are blatantly flawed. Moreover, they are unaware that many of the faults they find in the organizational unlearning literature are also present in the organizational learning literature. As to the second part of this essay, the study of the acquisition type of joint ventures clearly indicates the presence of organizational unlearning. Moreover, for such ventures to be learning organizations, the unlearning step has to be well managed.Research limitations/implicationsAs mentioned, the author’s response to Howells and Scholderer’s critique focuses on their comments on the author’s publications. It is highly likely that they have made other erroneous arguments that this essay fails to capture. The author’s discussion of unlearning and learning organizations is constrained by the context of acquisition joint ventures.Originality/valueThis essay forcefully rebuts Howells and Scholderer’s critique, which can become an obstacle in the development of organizational unlearning research. The dynamics of knowledge transfer in acquisition joint ventures suggest that skills of unlearning, and not just learning, are essential to reaching the goal of being a learning organization.

Procurement strategies for enhancing exploration and exploitation in construction projects

PurposeThe purpose of this study is to investigate how procurement strategies may be designed to facilitate exploration and exploitation in construction projects.Design/methodology/approachThis paper is based on a literature review of organizational research and construction management literature together with a brief interview study of Swedish clients and contractors.FindingsThe theoretical and empirical findings propose that small and simple projects with low uncertainty and scarce resources may focus on exploitation to enhance short-term efficiency through traditional procurement strategies including delivery systems that separate the actors and their activities (i.e. pure design-build- or design-bid-build-contracts), fixed price payment and price focus in bid evaluation. Large complex projects with high uncertainty and customization benefit from combining exploration and exploitation to enhance sustainable performance. This requires collaborative procurement strategies including joint specification through early contractor involvement, cost reimbursement coupled with incentive-based payment, bid evaluation based on multiple criteria and collaborative tools and activities in partnering arrangements.Research limitations/implicationsThis paper contributes to organizational learning literature by pinpointing the need for integrating procurement strategies that enhance combination of exploration and exploitation. The main contribution to the construction management literature involves the investigation of how procurement strategies may affect exploration and exploitation, as identified and articulated in the propositions developed in this paper.Practical implicationsFrom a practical perspective, the findings highlight the importance of tailoring procurement strategies to project characteristics to enhance a suitable balance between exploration and exploitation in construction projects.Originality/valueThe explicit focus on the operational project-level is uncommon but relevant in organizational learning literature.

KNOWLEDGE MANAGEMENT IN AN INNOVATIVE VIRTUAL COMPANY

Through a longitudinal case study, we examine the structure, characteristics, and team dynamics that motivate innovation within a virtual company. By determining the extent to which the knowledge management and organisational learning literatures apply to a virtual company, Flare Solutions Limited, we are able to identify unique characteristics that motivate creativity within the partners of the company. Utilising a case study and an action research approach, we found that this company integrates an interesting mix of mechanistic and organic elements within its structure to operate successfully as a learning organisation within a virtual environment. As well, the company has concretely identified and inventoried its knowledge, and other aspects of intellectual capital, permitting a clearer understanding of its operations. Our work offers a contribution as to how virtual companies can generate an atmosphere of creativity and innovation to create, preserve, and disseminate knowledge within a virtual company.

Knowledge management in an innovative virtual company

Through a longitudinal case study, we examine the structure, characteristics, and team dynamics that motivate innovation within a virtual company. By determining the extent to which the knowledge management and organisational learning literatures apply to a virtual company, Flare Solutions Limited, we are able to identify unique characteristics that motivate creativity within the partners of the company. Utilising a case study and an action research approach, we found that this company integrates an interesting mix of mechanistic and organic elements within its structure to operate successfully as a learning organisation within a virtual environment. As well, the company has concretely identified and inventoried its knowledge, and other aspects of intellectual capital, permitting a clearer understanding of its operations. Our work offers a contribution as to how virtual companies can generate an atmosphere of creativity and innovation to create, preserve, and disseminate knowledge within a virtual company.

The impacts of Chinese firm ownership and manager leadership on subordinate work values

As the mechanism for sustaining new technologies, creation of innovative culture is imperative in technical workplaces. Power-distance-oriented leadership is thought ineffective in fostering subordinates innovative values. This study contributes to organisational learning literature by examining whether participative leadership plays a mediating role to adjust the undesired impact in innovative culture acculturation. The sample comes from employees in four types of firms differing in ownership across two Chinese business clusters to represent level of organisational Westernisation. The findings reveal supports for the hypothesised relationships between firm ownership and subordinate work values accounted for this Westernisation connection: the state-owned and foreign-controlled businesses appear to hold the old and the new values on the two extremes separately; the privately owned fall somewhere in between. Additional mediation analysis suggests that an adjustment of manager's leadership from power-distance to participative can help reduce the negative impacts to foster subordinates innovative values, regardless of the old.

Facilitating organizational learning through agent-based modeling and simulation experimentation

Purpose In addition to requiring high absorptive capacity, contemporary organizations operating in highly dynamic and complex environments also require the ability to create knowledge internally, within the organization. While the organizational learning (OL) literature has produced a plethora of theories and frameworks, there has been relatively little empirical research on specific mechanisms for internal knowledge generation. Accordingly, this paper aims to answer calls for more research on mechanisms for internal generation of organizational knowledge. Design/methodology/approach This paper is an in-depth case study in the Australian Defence Organisation (ADO). Findings The paper presents a cyclical eight-stage knowledge generation process and demonstrates how agent-based modeling and simulation (ABMS) may be used to facilitate OL. Originality/value By detailing an in-depth case study of an ABMS mechanism for internal knowledge generation in the ADO, this paper provides a novel and relevant contribution to the OL literature.

Effect of firm’s diverse experiences on its alliance portfolio diversity: Evidence from India

AbstractThis study examines the effect of diverse experiences on a firm’s alliance portfolio diversity (APD). Drawing on the organizational learning perspective, it argues that a firm’s learning from diverse experiences enables it to reap the benefits and mitigate the risks of high level of APD. Thus, an experienced firm may choose to form or maintain relationships with diverse partners to get the intended benefits of APD. In particular, the study hypothesizes that a focal firm’s product and international diversification experience, alliance experience, and alliance experience heterogeneity are positively associated with its APD. A longitudinal investigation of 90 Indian firms, for the period 2004–2014, provides support for all the hypothesized relationships. In general, findings, which are robust to multiple estimation methods, suggest that a firm’s diverse experiences influence its APD. Findings of this study contribute to the alliance portfolio and organizational learning literature by examining the experiential antecedents of APD.

Applying Organizational Learning Research to Accountable Care Organizations.

To accomplish the goal of improving quality of care while simultaneously reducing cost, Accountable Care Organizations (ACOs) need to find new and better ways of providing health care to populations of patients. This requires implementing best practices and improving collaboration across the multiple entities involved in care delivery, including patients. In this article, we discuss seven lessons from the organizational learning literature that can help ACOs overcome the inherent challenges of learning how to work together in radically new ways. The lessons involve setting expectations, creating a supportive culture, and structuring the improvement efforts. For example, with regard to setting expectations, framing the changes as learning experiences rather than as implementation projects encourages the teams to utilize helpful activities, such as dry runs and pilot tests. It is also important to create an organizational culture where employees feel safe pointing out improvement opportunities and experimenting with new ways of working. With regard to structure, stable, cross-functional teams provide a powerful building block for effective improvement efforts. The article concludes by outlining opportunities for future research on organizational learning in ACOs.

Operationalising “Double-Loop” Learning in Service Organisations: A Systems Approach for Creating Knowledge

Learning organisation literature has widely discussed the connections between “double-loop” learning and its significance to organisational performance, but paying little attention to tools and systems that can operationalise “double-loop” learning in organisations. This paper investigates the impact of applying a systems approach for service operations design, expressed as the Vanguard Method (Seddon, Freedom from command and control: a better way to make the work work, 2003), in order to activate “double-loop” learning in service organisations. Two case studies were conducted in the banking mortgage operations and adults’ social care services in the UK, using the dimensions of the learning organisation questionnaire (DLOQ), semi-structured interviews, observations, and documents. The findings of the cross-case analysis support the link of applying the Vanguard Method with operationalising “double-loop” learning through three main factors, namely systematic-operations improvement, organisational capacity development, and outside-in mode of work; that are all embedded into the seven dimensions of the DLOQ. The value of this paper is the introduction of a service operations design tool that can activate “double-loop” learning performance in the fast changing knowledge era. It also provides an impetus for service organisations to creatively influence employees’ competencies to effectively improve internal systems.

Antecedents for forming simultaneous alliances or one-by-one alliances

This article extends existing alliance portfolio studies by exploring differences of antecedents for forming simultaneous alliances and one-by-one alliances using data from 1,029 alliances in the global pharmaceutical industry. The research’s findings suggest that firms are inclined to form simultaneous alliances when they have more prior alliance experience, conduct exploration alliances, or are in high level of technological diversification. Second, although simultaneous alliance formation may decrease a firm’s performance, greater alliance experience and inter-industry alliances may mitigate such the negative effect of simultaneous alliance formation on firm performance. Low levels of technological diversification may increase firm performance as forming simultaneous alliances. Moreover, propensity to form simultaneous alliances is increased with the increased number of formed alliances as larger firm size, organizational experience, and alliance experience take place. This article contributes to the current strategic alliances and organizational learning literature by introducing the concept of simultaneous and one-by-one alliances.

Tourism SMEs and organizational learning in a competitive environment

Purpose This paper aims to study the impact of increasing number of competitors on the organisational learning (OL) in tourism small and medium-sized enterprises. The focus of this study is the tourism and travel agencies (TTAs) of the City of Ahvaz where the OL was studied within TTAs insofar as increasing the number of competitors is concerned. The underlying question in this paper is whether or not the increasing number of competitors affects OL in TTAs of the City of Ahvaz. Design/methodology/approach Using a longitudinal survey, OL was studied at individual, group and organisational levels. The research is based upon quantitative and qualitative methods. Owing to the small number of samples, in addition to questionnaire and quantitative analysis, authors made use of in-depth interviews. The first research was conducted in 2012, while the second one was done in 2014. Findings It was found that in 2012, with its limited number of competitors in the market, learning in these organisations was desirable at individual level and not at group or organisational levels. On the other hand, both the quantitative and qualitative methods in 2014, with the increased number of TTAs, suggested that the quality of learning were desirable in all organisational levels in that year. Research limitations/implications Care should be taken in generalising the results of the research to other TTAs because the size of the sample in this study was small. Moreover, structure and performance of TTAs may be different among various regions. In addition to the said limitation, it must be noted that some variables such as experience, education and gender were not consider in analysing the results of the study. Furthermore, OL in the TTAs might be affected by other variables that were not considered in this study. Originality/value Originality of the study is to link “OL” to the “competition”. There is not any study with special focus on OL with approaching to competition, neither in travel and tourism literature nor in OL literature, and this study can be a starting point to raise further and future research and debates.

Reflecting on 10 years of focus on innovation, organisational learning and knowledge management literature in a construction project management context

Purpose This paper provides a brief critical analysis of how the focus on innovation diffusion, organisational learning and knowledge management has developed with an emphasis on the 2005-2015 period. The purpose of this paper is to provide a recent historic perspective on these concepts and suggest an integrated future focus for this research. Design/methodology/approach The paper identifies trends in how knowledge and learning is associated with innovation and experience based on a literature review. Findings The study of organisational learning and the management of knowledge and innovation diffusion is well-established in the construction and project management domains with two strongly emerging intertwined foci. On one hand, there has been a significant growing focus on learning through collaboration and the value of being a reflective practitioner. On the other hand, the exponential growth in the power of computing has led to “Big Data” reappearing to redefine data and information into pseudo-knowledge that is “blurring” the boundary of data, information and knowledge. Increasingly, we are likely to see effective innovation through more practical blending of these foci. Originality/value This provides a reflection on changing perspectives, on human and machine learning and knowledge management that may have a profound impact on future research themes.

A radical agenda for enabling organisation transformation through work-applied learning

Purpose The purpose of this paper is to challenge how we have traditionally thought about organisations and introduce two frameworks to enable us to understand how change in organisations might be facilitated better. Design/methodology/approach The paper discusses organisations as complex adaptive systems and uses complexity theory to inform two new frameworks for facilitating organisational learning and change. Findings In order for organisational learning to occur we need to change our mind-set of how we see organisations and to think of learning not just as individual but also as generative “communicative action” that emerge out of collaborative relationships. Research limitations/implications The frameworks proposed are grounded in organisational learning literature and the experience of the author. The proposed agenda for organisational learning has yet to be acted upon and evaluated. Practical implications The frameworks can be used to enhance understanding of learning and change in organisations. The agenda for enabling organisational transformation identifies key steps to put the ideas developed in the paper into practice. Social implications The approach advocated for use within organisations is one of empowerment and collaboration rather than top down direction. Originality/value The paper introduces new frameworks and a practical agenda to bring about organisational transformation through work-applied learning.

Balancing exploitation and exploration in FDI location choices

In this paper, I examine the location trajectory of foreign direct investments by emerging economy firms. I consider entries into countries with low cultural distance as exploitation, and entries into countries with high cultural distance as exploration in the internationalization process. Building on the organizational learning literature, I argue that the internationalization process is composed of a series of alternating exploitative and exploratory activities for a firm over time. Empirically, I propose to measure this process by the magnitude of the divergence in added cultural distance (i.e. the cultural distance that each new entry incurs relative to prior entries). In support of my argument, I find that the divergence in added cultural distance over time is far greater than what is predicted by the Uppsala internationalization process model and the springboard perspective. Moreover, I find that several firm- specific attributes can explain a sizable portion of the volatility of the internationalization process. Specifically, firm size, firm age, firm performance and organizational slack are significant antecedents of the fluctuations in the internationalization process.