Impact of gradual learning on organizational performance

Abstract

Organizational learning studies emphasize the importance of balancing exploration and exploitation for the survival and prosperity of organizations. Strategies for finding this equilibrium in various environments and conditions have been a continuous focus of studies. Notably, research on the mutual learning model, an agent-based model (ABM), has been instrumental in this regard (March, 1991). While this model assumes that individuals and organizations acquire knowledge from each other at one step, the reality often involves challenges in swiftly grasping complex knowledge or technology. In our study, we define the process of gradually acquiring knowledge or technology over time as 'gradual learning' and investigate its impact on organizational strategies within the framework of the mutual learning model. Our research reveals that in a gradual learning environment, a strategy of 'fast learning' involving rapid knowledge sharing among members is more effective for organizational performance than 'slow learning,' which preserves diversity. This suggests the need for a different strategy for a gradual learning environment, compared to previous research, where fast-learning individuals and slow-learning organization leads to high organizational performance.