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The Acquisition, Transfer, and Depreciation of Knowledge in Service Organizations: Productivity in Franchises

The Acquisition, Transfer, and Depreciation of Knowledge in Service Organizations: Productivity... The paper examines the acquisition, depreciation and transfer of knowledge acquired through learning by doing in service organizations. The analysis is based on weekly data collected over a one and a half year period from 36 pizza stores located in Southwestern Pennsylvania. The 36 stores, which are franchised from the same corporation, are owned by 10 different franchisees. We find evidence of learning in these service organizations: as the organizations gain experience in production, the unit cost of production declines significantly. Knowledge acquired through learning by doing is found to depreciate rapidly in these organizations. Knowledge acquired through learning by doing is found to depreciate rapidly in these organizations. Knowledge is found to transfer across stores owned by the same franchisee but not across stores owned by different franchisees. Theoretical and practical implications of the work are discussed. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Management Science INFORMS

The Acquisition, Transfer, and Depreciation of Knowledge in Service Organizations: Productivity in Franchises

Darr, Eric D.; Argote, Linda; Epple, Dennis
Management Science , Volume 41 (11): 13 – Nov 1, 1995
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References (34)

Publisher
INFORMS
Copyright
Copyright © INFORMS
Subject
Research Article
ISSN
0025-1909
eISSN
1526-5501
DOI
10.1287/mnsc.41.11.1750
Publisher site
See Article on Publisher Site

Abstract

The paper examines the acquisition, depreciation and transfer of knowledge acquired through learning by doing in service organizations. The analysis is based on weekly data collected over a one and a half year period from 36 pizza stores located in Southwestern Pennsylvania. The 36 stores, which are franchised from the same corporation, are owned by 10 different franchisees. We find evidence of learning in these service organizations: as the organizations gain experience in production, the unit cost of production declines significantly. Knowledge acquired through learning by doing is found to depreciate rapidly in these organizations. Knowledge acquired through learning by doing is found to depreciate rapidly in these organizations. Knowledge is found to transfer across stores owned by the same franchisee but not across stores owned by different franchisees. Theoretical and practical implications of the work are discussed.

Journal

Management Science – INFORMS

Published: Nov 1, 1995

Keywords: Keywords : organizational learning ; learning curves ; productivity ; knowledge transfer

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