The organizational learning curve

A very practical consequence of organizational learning is that the time required to produce a unit decreases with the total number of units produced. Potentially, this thumb rule known as the learning curve has a great practical importance. Unfortunately, no procedure is available to predict the pace and extent at which the production time will decrease. Aggregate models are able to fit empirical data with a few parameters, but they are unable to link these parameters to specific properties of an organization. This article links the parameters of the only available disaggregate model of the learning curve to measurable features of the component units of an organization. Unfortunately, no data are available that may confirm that precisely these features are key to organizational learning. However, analytical results derived under simplifying assumptions yield meaningful dynamics that appear to fit with empirical reports. This circumstance suggests that practical applications will be possible in the future. (c) 2005 Elsevier B.V. All rights reserved.