The Transfer of Experience in Groups of Organizations: Implications for Performance and Competition
Groups of organizations are pervasive, although there is little systematic knowledge about how they affect their members. We examine one dimension of the operation of organization groups, the transfer of experience. Our core argument is that organization groups may create benefits for their members, but problems for those outside the group. Within the group they can facilitate the transfer of experience among their members by creating mechanisms for communication, incentives for helping, and by promoting understanding. The predicted pattern of experience transfer should improve performance of those within the group, but also has implications for those outside it. Experience accumulated in one organization group strengthens the competitiveness of its organizations, and thereby harms competitors outside the group. Thus, organization groups are fundamental both for the functioning of their members and the competitive dynamics of their industries. Our longitudinal analysis of the profitability of kibbutz agriculture supports both these claims. Between 1954 and 1965 (the years of this study), almost all kibbutzim were part of organization groups. Kibbutzim became more profitable as a function of the experience of others in their group. Their profitability was reduced, however, as a function of experience of others outside their group.
Volume (Year): 48 (2002)
Issue (Month): 12 (December)
|Contact details of provider:|| Postal: 7240 Parkway Drive, Suite 300, Hanover, MD 21076 USA|
Web page: http://www.informs.org/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rebecca Henderson & Iain Cockburn, 1996.
"Scale, Scope, and Spillovers: The Determinants of Research Productivity in Drug Discovery,"
RAND Journal of Economics,
The RAND Corporation, vol. 27(1), pages 32-59, Spring.
- Rebecca Henderson & Iain Cockburn, "undated". "Scale, Scope and Spillovers: The Determinants of Research Productivity in Drug Discovery," Working Papers ec25/94, Department of Economics, University of Lancaster.
- Bruce Kogut & Udo Zander, 1992. "Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology," Organization Science, INFORMS, vol. 3(3), pages 383-397, August.
- Bahk, Byong-Hong & Gort, Michael, 1993. "Decomposing Learning by Doing in New Plants," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 561-583, August.
- James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
- Barkai, Haim & Levhari, David, 1973. "The Impact of Experience on Kibbutz Farming," The Review of Economics and Statistics, MIT Press, vol. 55(1), pages 56-63, February.
- Paul Almeida & Bruce Kogut, 1999. "Localization of Knowledge and the Mobility of Engineers in Regional Networks," Management Science, INFORMS, vol. 45(7), pages 905-917, July.
- Foster, Andrew D & Rosenzweig, Mark R, 1995. "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1176-1209, December.
- Mark Rosenzweig & Andrew D. Foster, "undated". "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Home Pages _068, University of Pennsylvania.
- Peter Grindley & David C. Mowery & Brian Silverman, 1994. "SEMATECH and collaborative research: Lessons in the design of high-technology consortia," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 13(4), pages 723-758.
- Eric D. Darr & Linda Argote & Dennis Epple, 1995. "The Acquisition, Transfer, and Depreciation of Knowledge in Service Organizations: Productivity in Franchises," Management Science, INFORMS, vol. 41(11), pages 1750-1762, November.
- Epple, D. & Argote, L. & Darr, E.D., 1995. "The Acquisition, Transfer and Depreciation of Knowledge in Service Organisations: Productivity in Franchises," GSIA Working Papers 1995-16, Carnegie Mellon University, Tepper School of Business.
- Linda Argote & Sara L. Beckman & Dennis Epple, 1990. "The Persistence and Transfer of Learning in Industrial Settings," Management Science, INFORMS, vol. 36(2), pages 140-154, February. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:48:y:2002:i:12:p:1517-1533. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc)
If references are entirely missing, you can add them using this form.