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Organizational Learning Curves: An Overview

In: Organizational Learning

Author

Listed:
  • Linda Argote

    (Carnegie Mellon University)

Abstract

“Learning curves” have been found in many organizations. As organizations produce more of a product, the unit cost of production typically decreases at a decreasing rate. A learning curve for the production of an advanced military jet built in the 1970s and 1980s is shown in Fig. 1.1. The number of direct labor hours required to assemble each jet aircraft is plotted on the vertical axis; the cumulative number of aircraft produced is plotted on the horizontal axis. As can be seen from Fig. 1.1, the number of direct labor hours required to assemble each aircraft decreased significantly as experience was gained in production, and the rate of decrease declined with rising cumulative output. This and related phenomena are referred to as learning curves, progress curves, experience curves, or learning by doing.

Suggested Citation

  • Linda Argote, 2013. "Organizational Learning Curves: An Overview," Springer Books, in: Organizational Learning, edition 2, chapter 0, pages 1-29, Springer.
  • Handle: RePEc:spr:sprchp:978-1-4614-5251-5_1
    DOI: 10.1007/978-1-4614-5251-5_1
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    Cited by:

    1. Francesco Amodio & Miguel A. Martinez-Carrasco, 2023. "Workplace Incentives and Organizational Learning," Journal of Labor Economics, University of Chicago Press, vol. 41(2), pages 453-478.
    2. Wonsang Ryu & Brian T. McCann & William P. Wan, 2022. "Learning by doing and corporate diversification," Strategic Management Journal, Wiley Blackwell, vol. 43(8), pages 1635-1665, August.
    3. Menzel, Andreas, 2021. "Knowledge exchange and productivity spill-overs in Bangladeshi garment factories," Journal of Economic Behavior & Organization, Elsevier, vol. 185(C), pages 721-746.

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