Skip to main content

Abstract

The term ‘learning’ evokes an image of continual renewal, the acquisition of new knowledge. The expression ‘Schumpeterian dynamics’ conveys a different image. An image composed on the one hand of staid, established organizations failing to recognize new opportunities in their environment and new organizations established to exploit these same opportunities. While learning is a powerful instrument of organizational intelligence, it is also associated with some of the difficulties of established firms responding to changing competitive environments. This pathology stems from some basic properties of learning mechanisms.

The research was supported by the Reginald Jones Center and Sol C. Snider Entrepreneurial Center at the Wharton School. University of Pennsylvania.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

eBook
USD 16.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Similar content being viewed by others

References

  • Abernathy, W. and Clark, K. (1985) ‘Innovation: Mapping the Winds of Creative Destruction’, Research Policy, 14, pp. 3–22.

    Article  Google Scholar 

  • Abernathy, W. and Wayne, K. (1974) ‘Limits of the Learning Curve’, Harvard Business Review. 52, pp. 109–19.

    Google Scholar 

  • Ashby, W. R. (1960) Design for a Brain (New York: John Wiley & Sons).

    Book  Google Scholar 

  • Burgelman, R. A. (1991) ‘Intraorganizational Ecology of Strategy Making and Organizational Adaptation: Theory and Field Research’, Organizational Science, 2. pp. 239–62.

    Article  Google Scholar 

  • Brown, J. S. and Duguid, P. (1991) ‘Organizational Learning and Communities of Practice: Toward a Unified View of Working, Learning and Innovation’, Organizational Science, 2, pp. 40–57.

    Article  Google Scholar 

  • Chandler, Alfred. (1962) Strategy and Structure: Chapters in the History of the American Industrial Enterprise (Cambridge, MA: MIT Press).

    Google Scholar 

  • Chapman, L. J. and Chapman, J. P. (1969) ‘Illusory Correlation as an Obstacle to the Use of Valid Psychodiagnostic Signs’, Journal of Abnormal Psychology, 74, 271–80.

    Article  Google Scholar 

  • Cohen, W. and Levinthal, D. (1989) ‘Innovation and Learning: The Two Faces of R&D’, Economic Journal, 99, pp. 569–96.

    Article  Google Scholar 

  • Cohen, W. and Levinthal, D. (1990) ‘Absorptive Capacity: A New Perspective on Learning and Innovation’, Administrative Science Quarterly, 35, pp. 128–52.

    Article  Google Scholar 

  • Cohen, W. and Levinthal, D. (1994) ‘Fortune Favors the Prepared Firm’, Management Science.

    Google Scholar 

  • Cyert, R. and March, J. (1963) A Behavioral Theory of the Firm. (Englewood Cliffs, NJ: Prentice-Hall).

    Google Scholar 

  • Glassman, R. B. (1973) ‘Persistence and loose coupling in living systems’. Behavioral Science. 18, pp. 83–98.

    Article  Google Scholar 

  • Hannan, M. and Freeman J. (1977) ‘The population ecology of organizations’, American Journal of Sociology, 82, pp. 929–64.

    Article  Google Scholar 

  • Hannan, M. T. and Freeman, J. (1989) Organizational Ecology (Cambridge, MA: Harvard University Press).

    Google Scholar 

  • Henderson, R. and Clark, K. (1990) ‘Architectural Innovations: The Reconfiguration of Existing Product Technologies and the Failure of Established Firms’. Administrative Science Quarterly. 35, pp. 9–30

    Article  Google Scholar 

  • Holland, J. H. (1975) Adaptation in Natural and Artificial Systems (Ann Arbor, MI: University of Michigan Press).

    Google Scholar 

  • Kauffman, S. (1989) ‘Adaptation on rugged fitness landscapes’, in D. Stein (ed.). Lectures in the Sciences of Complexity (Reading, MA: Addison-Wesley).

    Google Scholar 

  • Kuhn, T. S. (1970) The Structure of Scientific Revolutions (Chicago, IL: University of Chicago Press).

    Google Scholar 

  • Lave, J. (1988) Cognition in Practice: Mind, Mathematics, and Culture in Everyday Life (New York: Cambridge University Press).

    Book  Google Scholar 

  • Lave, J. and Wenger, E. (1990) Situated Learning: Legitimate Peripheral Participation (New York: Cambridge University Press).

    Google Scholar 

  • Lawrence, P. R. and Lorsch, J. W. (1967) Organizations and Environments: Managing Differentiation and Integration (Boston, MA: Harvard Business School Press).

    Google Scholar 

  • Levinthal, D. (1991) ‘Organizational Adaptation and Environmental Selection — Interrelated Processes of Change’, Management Science, 2, pp. 140–45.

    Google Scholar 

  • Levinthal, D. (1993) ‘Adaptation on Rugged Landscapes’, unpublished manuscript.

    Google Scholar 

  • Levinthal, D. and March, J. (1981) ‘A Model of Adaptive Organizational Search’, Journal of Economic Behavior, 2, pp. 307–33.

    Article  Google Scholar 

  • Levinthal, D. and March, J. (1993) ‘The Myopia of Learning’, Strategic Management Journal.

    Google Scholar 

  • Levitt, B. and March, J. G., (1988) ‘Organizational Learning’, Annual Review of Sociology, 14, pp. 319–40.

    Article  Google Scholar 

  • March, J. G. (1981) ‘Footnotes to Organizational Change’, Administrative Science Quarterly, 26, pp. 563–77.

    Article  Google Scholar 

  • March, J. G. (1991) ‘Exploration and Exploitation in Organizational Learning’, Organizational Science, 2, pp. 71–87.

    Article  Google Scholar 

  • March, J. G. and Simon, H. A. (1958) Organizations (New York: John Wiley & Sons).

    Google Scholar 

  • Milgrom, P. and Roberts, J. (1990) ‘The Economics of Modern Manufacturing’. American Economic Review, 80, pp. 511–28.

    Google Scholar 

  • Nelson, R. (1990) ‘Capitalism as an Engine of Progress’, Research Policy.

    Google Scholar 

  • Nelson, R. and Winter, S. (1982) An Evolutionary Theory of Economic Change (Cambridge, MA: Harvard University Press).

    Google Scholar 

  • Perrow, C. (1984) Normal Accident (New York: Basic Books).

    Google Scholar 

  • Pfeffer, J. and Salancik, G. (1978) The External Control of Organizations (New York: Harper & Row).

    Google Scholar 

  • Porter, M. (••••) The Competitive Advantage of Nations (New York: The Free Press).

    Google Scholar 

  • Powell, W. and Brantley, P. (1991) in N. Nohria and R. Eccles (eds), Networks and Organizations (Cambridge, MA: Harvard Business School Press).

    Google Scholar 

  • Ross, L. (1977) ‘The Intuitive Psychologist and his Shortcomings: Distortions in the Attribution Process’, in L. Berkowitz (ed.), Advances in Experimental Social Psychology, vol. 10 (New York: Academic Press).

    Google Scholar 

  • Samuelson, P. A. (1979) Foundations of Economic Analysis (New York: Atheneum).

    Google Scholar 

  • Schumpeter, J. A. (1942) Capitalism, Socialism, and Democracy (New York: Harper).

    Google Scholar 

  • Smith, J. M. (1989) Evolutionary Genetics (New York: Oxford University Press).

    Google Scholar 

  • Starbuck, W. H. (1983) ‘Organizations as Action Generators’, American Sociological Review, 48, pp. 91–102.

    Article  Google Scholar 

  • Stinchcombe, A. (1965) ‘Social Structure and Organizations’, in J. March (ed.). Handbook of Organizations (Chicago, IL: Rand McNally).

    Google Scholar 

  • Tushman, M. and Anderson, P. (1986) ‘Technological Discontinuities and Organizational Environment’. Administrative Science Quarterly, 31, pp. 587–611.

    Article  Google Scholar 

  • Tushman, M. and Romanelli, E. (1985) ‘Organizational Evolution: A Metamorphosis Model of Convergence and Reorientation’, in L. Cummings and B. Staw (eds), Research in Organizational Behavior, 7, pp. 171–222.

    Google Scholar 

  • Waterman, R., Peters, T., and Phillips, J. (1980) ‘Structure is not Organization’, Business Horizons, 23, pp. 14–26.

    Article  Google Scholar 

  • Weick, K. (1979) The Social Psychology of Organizing (New York: Random House).

    Google Scholar 

  • Wright, S. (1932) The Roles of Mutation, Inbreeding, Cross-breeding and Selection in Evolution’, Proceedings of the XI International Congress of Genetics, 1, pp. 356–66

    Google Scholar 

Download references

Authors

Editor information

Editors and Affiliations

Copyright information

© 1996 Associazione di Storia e Studi sull’Impressa

About this chapter

Cite this chapter

Levinthal, D. (1996). Learning and Schumpeterian Dynamics. In: Dosi, G., Malerba, F. (eds) Organization and Strategy in the Evolution of the Enterprise. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-13389-5_2

Download citation

Publish with us

Policies and ethics