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On the Determinants of Organizational Forgetting

  • Brachet, Tanguy
  • David, Guy

Studies of organizational learning and forgetting identify potential channels through which the firm’s production experience is lost. While the ability to distinguish between these channels has implications for efficient resource allocation within the firm, to date, their relative importance has been ignored. This paper develops a framework for eliciting 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 sizable skill decay and turnover effects, with the latter having twice the magnitude of the former.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 21464.

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Date of creation: 2009
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Handle: RePEc:pra:mprapa:21464
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  1. David, Guy & Chiang, Arthur J., 2009. "The determinants of public versus private provision of Emergency Medical Services," International Journal of Industrial Organization, Elsevier, vol. 27(2), pages 312-319, March.
  2. Verbeek, Marno & Nijman, Theo, 1992. "Testing for Selectivity Bias in Panel Data Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(3), pages 681-703, August.
  3. Peter Thompson, 2007. "How Much Did the Liberty Shipbuilders Forget?," Management Science, INFORMS, vol. 53(6), pages 908-918, June.
  4. Peter Thompson, 2003. "How Much Did The Liberty Shipbuilders Forget?," Working Papers 0301, Florida International University, Department of Economics.
  5. Robert S. Huckman & Gary P. Pisano, 2006. "The Firm Specificity of Individual Performance: Evidence from Cardiac Surgery," Management Science, INFORMS, vol. 52(4), pages 473-488, April.
  6. C. Lanier Benkard, 2000. "Learning and Forgetting: The Dynamics of Aircraft Production," American Economic Review, American Economic Association, vol. 90(4), pages 1034-1054, September.
  7. Rebecca Achee Thornton & Peter Thompson, 2001. "Learning from Experience and Learning from Others: An Exploration of Learning and Spillovers in Wartime Shipbuilding," American Economic Review, American Economic Association, vol. 91(5), pages 1350-1368, December.
  8. Rigobon, Roberto & Stoker, Thomas M., 2009. "Bias From Censored Regressors," Journal of Business & Economic Statistics, American Statistical Association, vol. 27(3), pages 340-353.
  9. Peter Thompson, 2001. "How Much Did the Liberty Shipbuilders Learn? New Evidence for an Old Case Study," Journal of Political Economy, University of Chicago Press, vol. 109(1), pages 103-137, February.
  10. Charles D. Bailey, 1989. "Forgetting and the Learning Curve: A Laboratory Study," Management Science, INFORMS, vol. 35(3), pages 340-352, March.
  11. Nijman, T.E. & Verbeek, M.J.C.M., 1992. "Testing for selectivity in panel data models," Other publications TiSEM 7ec34a6c-1d84-4052-971c-d, Tilburg University, School of Economics and Management.
  12. repec:ner:tilbur:urn:nbn:nl:ui:12-153280 is not listed on IDEAS
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