Loading...
Do experience effects vary across governance modes? Evidence from new product introduction in the global aerospace industry, 1948–2000
Mulotte,L.
Mulotte,L.
Abstract
We examine the potential for improved performance through experiential learning of three modes of new product introduction: internal development, joint development, and licensing. Drawing on the organizational learning literature, we argue that the speed of experiential learning—that is to say, the marginal performance benefit of experience—is higher when firms carry out activities that allow for a clearer understanding of cause–effect relationships, whereas experiential benefits plateau at higher levels of experience when firms are in activities involving higher levels of related task variation. We thus predict that both the speed of learning and the experience threshold are higher in internal development than they are in licensing; the speed of learning and experience threshold in joint development fall in between. This means that the potential for improved performance through experiential learning should be greatest with internal development, moderate with joint development, and rather limited in licensing. We study the performance of 278 new aircraft introductions undertaken by 94 firms between 1948 and 2000 and find support for our hypotheses.
Description
Date
2014-06
Journal Title
Journal ISSN
Volume Title
Publisher
Files
Loading...
Mulotte_OS_2013.pdf
Adobe PDF, 297 KB
Research Projects
Organizational Units
Journal Issue
Keywords
SDG 9 - Industry, Innovation, and Infrastructure
Citation
Mulotte, L 2014, 'Do experience effects vary across governance modes? Evidence from new product introduction in the global aerospace industry, 1948–2000', Organization Science, vol. 25, no. 3, pp. 757-775. https://doi.org/10.1287/orsc.2013.0862