In this paper we seek to understand how firms learn about what adjustments they need to make in their organization structure at the workplace level. We define four organizational systems: traditional (the simplest system), high-performance (the most complex system), decision-making oriented, and financial-incentives oriented (intermediate complexity). We analyze (1) the effects of learning-by-doing on adoption of more or less complex systems, (2) the shape of the performance-experience learning curves associated with different systems, (3) the match between perceived organizational capabilities and the choice of systems, (4) the influence of other firms‘ systems and performance on a firm‘s adjustment decisions, and (5) the effect of a firm‘s location on its decisions. JEL classification: D83, L25, M54
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Paper provided by Industrial Relations Center, University of Minnesota (Twin Cities Campus) in its series Working Papers with number
0407.
Length: Date of creation: Date of revision: Handle: RePEc:hrr:papers:0407
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