Tuesday, January 30, 2007

Organizational learning, Levitt & March (1988)

This article views organizational learning as routine-based, history-dependent, and target-oriented.

Organizations learn by encoding inferences from history into routines that guide behavior. (and decision making?) Problems: past does not perfectly predict the future, experience can be incomplete due to complexities and instabilities, the causal systems are complex

Organizations learn from direct experience and from the experience of other organizations. organizations develop paradigms for interpreting expereince.

Learning from experience includes trial-and-error and organizational-search

People are not perfect and make errors in their inferences from events. Conflicts of interest within the organization spawn conflicting interpretations of expereince and success.

The lessons of history encoded in routines are an important basis for the intelligence of organizations

Learning needs to be compared with other serious alternatives not with perfection.

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