The Dynamics of Organizational Learning

  • Authors:
  • Bernardo A. Huberman

  • Affiliations:
  • HP Labs, 1501 Page Mill Rd., Palo Alto, CA 94304, USA. huberman@hpl.hp.com

  • Venue:
  • Computational & Mathematical Organization Theory
  • Year:
  • 2001

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Abstract

This paper presents a dynamical theory of organizational learning that explicitly accounts for both the introduction of new routines into the manufacturing process iand improvements in the selection of which procedures to follow. Besides producing a power law of organizational learning with a rate that depends on the effectiveness of the decision procedure, the theory also accounts for observed anomalies characterized by price increases with cumulative output.