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On the Determinants of Organizational Forgetting

Author

Listed:
  • Guy David
  • Tanguy Brachet

Abstract

Studies of organizational learning and forgetting identify potential channels through which the firm's production experience is lost. These channels have differing implications for efficient resource allocation within the firm, but their relative importance has been ignored to date. We develop a framework for distinguishing the contributions of labor turnover and human capital depreciation to organizational forgetting. We apply our framework to a novel dataset of ambulance companies and their workforce. We find evidence of organizational forgetting, which results from skill decay and turnover effects. The latter has twice the magnitude of the former. (JEL D23, D83, J24, J63)

Suggested Citation

  • Guy David & Tanguy Brachet, 2011. "On the Determinants of Organizational Forgetting," American Economic Journal: Microeconomics, American Economic Association, vol. 3(3), pages 100-123, August.
    • Handle: RePEc:aea:aejmic:v:3:y:2011:i:3:p:100-123
    Note: DOI: 10.1257/mic.3.3.100
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    References listed on IDEAS

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    Cited by:

    1. Gabriel Facchini, 2022. "Forgetting‐by‐not‐doing: The case of surgeons and cesarean sections," Health Economics, John Wiley & Sons, Ltd., vol. 31(3), pages 481-495, March.
    2. Apurba Shee & Spiro E. Stefanou, 2016. "Bounded learning-by-doing and sources of firm level productivity growth in colombian food manufacturing industry," Journal of Productivity Analysis, Springer, vol. 46(2), pages 185-197, December.
    3. Jackson, Paul & Ortego-Marti, Victor, 2024. "Skill loss during unemployment and the scarring effects of the COVID-19 pandemic," Labour Economics, Elsevier, vol. 88(C).
    4. Anelí Bongers, 2023. "Learning by doing, organizational forgetting, and the business cycle," Bulletin of Economic Research, Wiley Blackwell, vol. 75(1), pages 141-150, January.
    5. Chaudhary, Sookti & Davis, Alison & Troske, Kenneth & Troske, SuZanne, 2019. "Hospital Closures and Short-Run Change in Ambulance Call Times," IZA Discussion Papers 12797, Institute of Labor Economics (IZA).
    6. Ortego-Marti, Victor, 2017. "Differences in skill loss during unemployment across industries and occupations," Economics Letters, Elsevier, vol. 161(C), pages 31-33.
    7. Rachet-Jacquet, Laurie, 2022. "Do breaks from surgery improve the performance of orthopaedic surgeons?," Journal of Health Economics, Elsevier, vol. 85(C).
    8. Elizabeth Ty Wilde, 2013. "Do Emergency Medical System Response Times Matter For Health Outcomes?," Health Economics, John Wiley & Sons, Ltd., vol. 22(7), pages 790-806, July.
    9. Courtemanche, Charles & Friedson, Andrew & Koller, Andrew P. & Rees, Daniel I., 2019. "The affordable care act and ambulance response times," Journal of Health Economics, Elsevier, vol. 67(C).
    10. Suresh Muthulingam & Anupam Agrawal, 2016. "Does Quality Knowledge Spillover at Shared Suppliers? An Empirical Investigation," Manufacturing & Service Operations Management, INFORMS, vol. 18(4), pages 525-544, October.
    11. Ortego-Marti, Victor, 2017. "Loss of skill during unemployment and TFP differences across countries," European Economic Review, Elsevier, vol. 100(C), pages 215-235.
    12. Traiberman, Sharon & Rotemberg, Martin, 2023. "Precautionary protectionism," Journal of International Economics, Elsevier, vol. 145(C).
    13. Carolyn D. Egelman & Dennis Epple & Linda Argote & Erica R.H. Fuchs, 2013. "Learning by Doing in a Multi-Product Manufacturing Environment: Product Variety, Customizations, and Overlapping Product Generations," NBER Working Papers 19674, National Bureau of Economic Research, Inc.
    14. Anupam Agrawal & Ujjal Mukherjee & Suresh Muthulingam, 2020. "Does Organizational Forgetting Affect Quality Knowledge Gained Through Spillover?—Evidence from the Automotive Industry," Production and Operations Management, Production and Operations Management Society, vol. 29(4), pages 907-934, April.
    15. Sansi Yang & C. Richard Shumway, 2020. "Knowledge accumulation in US agriculture: research and learning by doing," Journal of Productivity Analysis, Springer, vol. 54(2), pages 87-105, December.
    16. Dirk Martignoni & Thomas Keil, 2021. "It did not work? Unlearn and try again—Unlearning success and failure beliefs in changing environments," Strategic Management Journal, Wiley Blackwell, vol. 42(6), pages 1057-1082, June.
    17. Andreas Menzel, 2017. "Knowledge Exchange and Productivity Spill-overs in Bangladeshi Garment Factories," CERGE-EI Working Papers wp607, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    18. Hockenberry, Jason M. & Helmchen, Lorens A., 2014. "The nature of surgeon human capital depreciation," Journal of Health Economics, Elsevier, vol. 37(C), pages 70-80.
    19. Elena Lucchese, 2020. "Where are you? The problem of location during emergencies," Working Papers 439, University of Milano-Bicocca, Department of Economics, revised Apr 2020.
    20. Beneito, Pilar & Rochina-Barrachina, María Engracia & Sanchis, Amparo, 2015. "The path of R&D efficiency over time," International Journal of Industrial Organization, Elsevier, vol. 42(C), pages 57-69.
    21. Sarah S. Stith, 2018. "Organizational learning-by-doing in liver transplantation," International Journal of Health Economics and Management, Springer, vol. 18(1), pages 25-45, March.
    22. Linda Argote & Sunkee Lee & Jisoo Park, 2021. "Organizational Learning Processes and Outcomes: Major Findings and Future Research Directions," Management Science, INFORMS, vol. 67(9), pages 5399-5429, September.
    23. Serdar Aldatmaz & Paige Ouimet & Edward D Van Wesep, 2014. "The Option To Quit: The Effect Of Employee Stock Options On Turnover," Working Papers 14-06, Center for Economic Studies, U.S. Census Bureau.
    24. Anupam Agrawal & Suresh Muthulingam, 2015. "Does Organizational Forgetting Affect Vendor Quality Performance? An Empirical Investigation," Manufacturing & Service Operations Management, INFORMS, vol. 17(3), pages 350-367, July.
    25. Eva Labro & James D. Omartian, 2023. "Managing Employee Retention Concerns: Evidence from U.S. Census Data," Working Papers 23-07, Center for Economic Studies, U.S. Census Bureau.

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    More about this item

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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