Publication:
How Long Does It Take to Get to the Learning Curve?

Simple item page
dc.contributor.authorMusaji, Serghei
dc.contributor.authorSchulze, William
dc.contributor.authorCastro, Julio de
dc.contributor.rorhttps://ror.org/02jjdwm75
dc.date.accessioned2024-07-02T16:11:28Z
dc.date.available2024-07-02T16:11:28Z
dc.date.issued2020-02-01
dc.description.abstractThe learning curve describes learning from experience, even in its earliest phases, as an iterative process in which the ratio of positive to negative outcomes rises sharply with experience before becoming subject to diminishing returns. In contrast, the organizational learning literature suggests that learning when experience is limited is difficult, and unfavorable outcomes are common. Resolution of these competing claims is especially important in the context of strategic decision-making, where the costs of unreliable learning are significant. We develop theory and draw on a unique dataset of strategic decisions – the selection of franchisee applicants by a large global remittances firm over a 14-year period – to test competing predictions about how long it takes to “get to” the learning curve: that is, to the point after which performance trends reliably positive. Results from 3,620 selection decisions in 165 markets indicate that it took this organization about 19 decisions to reach the learning curve. Further, we identify factors that reduce the cost of reaching the learning curve, as well as the number of decisions required to reach it. Implications for organizational learning theory in general and strategic decision-making in particular are explored.
dc.description.peerreviewedyes
dc.description.statusPublished
dc.formatapplication/pdf
dc.identifier.citationMusaji, S., Schulze, W. S., & De Castro, J. O. (2020). How long does it take to get to the learning curve?. Academy of Management Journal, 63(1), 205-223. https://doi.org/10.5465/amj.2017.1145
dc.identifier.doihttps://doi.org/10.5465/amj.2017.1145
dc.identifier.issn1948-0989
dc.identifier.urihttps://hdl.handle.net/20.500.14417/2878
dc.issue.number1
dc.journal.titleAcademy of Management Journal
dc.language.isoen
dc.licensehttps://creativecommons.org/licenses/by-nc-nd/2.0/legalcode
dc.page.final223
dc.page.initial205
dc.page.total205-223
dc.publisherAcademy of Management
dc.relation.departmentEntrepreneurship
dc.relation.entityIE University
dc.relation.schoolIE Business School
dc.rightsAttribution Non Commercial No Derivatives 2.0 Generic
dc.rights.accessRightsinfo:eu-repo/semantics/openAccess
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/2.0/legalcode
dc.subject.keywordExperience-based learning
dc.subject.keywordInformation processing
dc.subject.keywordStrategic decision-making
dc.subject.otherExperience-based learning;Information processing;Strategic decision-making
dc.titleHow Long Does It Take to Get to the Learning Curve?
dc.typeinfo:eu-repo/semantics/article
dc.version.typeinfo:eu-repo/semantics/acceptedVersion
dc.volume.number63
dspace.entity.typePublication
relation.isAuthorOfPublication280c54e4-8cc0-476c-b910-ab9061db5f47
relation.isAuthorOfPublication280c54e4-8cc0-476c-b910-ab9061db5f47
relation.isAuthorOfPublication.latestForDiscovery280c54e4-8cc0-476c-b910-ab9061db5f47
relation.isAuthorOfPublication.latestForDiscovery280c54e4-8cc0-476c-b910-ab9061db5f47
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
10625915.pdf
Size:
985.4 KB
Format:
Adobe Portable Document Format
Download
Collections
Research Articles