Exploration and exploitation in organizational learning

2009 ◽  
Author(s):  
James G. March
Keyword(s):  
Organizational Learning ◽  
Competitive Advantage ◽  
Costs And Benefits ◽  
Exploration And Exploitation ◽  
Ecological Interaction ◽  
Mutual Learning ◽  
Long Run ◽  
Adaptive Processes ◽  
Short Run ◽  
Use Of Knowledge

- This paper considers the relation between the exploration of new possibilities and the exploitation of old certainties in organizational learning. It examines some complications in allocating resources between the two, particularly those introduced by the distribution of costs and benefits across time and space, and the effects of ecological interaction. Two general situations involving the development and use of knowledge in organizations are modeled. The first is the case of mutual learning between members of an organization and an organizational code. The .second is the case of learning and competitive advantage in competition for primacy. The paper develops an argument that adaptive processes, by refining exploitation more rapidly than exploration, are likely to become effective in the short run but self-destructive in the long run. The possibility that certain common organizational practices ameliorate that tendency is assessed.

scholarly journals Forging a New Identity: The Costs and Benefits of Diversity in Civil War Combat Units for Black Slaves and Freemen

2006 ◽  
Vol 66 (4) ◽  
pp. 936-962 ◽  
Author(s):  
Dora L. Costa ◽  
Matthew E. Kahn
Keyword(s):  
Civil War ◽  
Later Life ◽  
Farm Workers ◽  
Union Army ◽  
Costs And Benefits ◽  
Life Outcomes ◽  
Black Soldiers ◽  
Long Run ◽  
Short Run ◽  
Wartime Experience

By the end of the Civil War 186,017 black men had served in the Union Army, roughly three-quarters of whom were former slaves. Because most black soldiers were illiterate farm workers, the war exposed them to a much broader world. Their wartime experience depended upon their peers, their commanding officers, and where their regiment toured and affected their later life outcomes. In the short run the combat units benefited from company homogeneity, which built social capital and minimized shirking, but in the long run men's human capital and acquisition of information was best improved by serving in heterogeneous companies.

scholarly journals Integrating Throuhput Accounting and Activity Based Costing in Industrial Companies

2019 ◽  
Vol 54 (6) ◽  
Author(s):  
Marwa Fadhil Khalaf
Keyword(s):  
Competitive Advantage ◽  
Indirect Costs ◽  
Business Environment ◽  
Production Costs ◽  
Scientific Development ◽  
Activity Based Costing ◽  
Traditional System ◽  
Industrial Companies ◽  
Long Run ◽  
Short Run

Today, companies are seeking to achieve competitive positions in the business environment for earned customers satisfaction and increase their marketing share by providing distinct products at a lower cost and at the same time ensuring high quality. This study aims to clarify the contribution integrating between throughput accounting and activity based costing in reducing the production costs and achieving a competitive advantage in a state company for vegetable oils industry. The most significant findings show that by applying the throughput accounting integrated with activity based cost it is possible to reduce the life-cycle of products cost with more expansion. The fact that throughput accounting is a tool to manage costs in the short run, while activity based costing is a system of managing costs in the long run. Therefore integrating these two strategies ensures inclusiveness, as well as allows avoiding a waste of resources and removing the activity that does not add value to the product. This will result in reducing the production cost and achieving the competitive advantage. The paper also puts forward the importance of arranging training courses to keep up with the latest scientific development, including the role and importance of each of the strategies, their application mechanisms and benefits, advantages, and differences between them and the traditional system in allocated indirect costs.

The Influence of Supply Chain Sustainability Practices on Suppliers

2020 ◽  
pp. 1708-1721
Author(s):  
Xiaowei Wang ◽  
Lincoln C. Wood
Keyword(s):  
Supply Chain ◽  
Financial Performance ◽  
Conceptual Model ◽  
Firm Size ◽  
Costs And Benefits ◽  
Managerial Support ◽  
Long Run ◽  
Short Run ◽  
Sustainability Practices ◽  
The Impact

Literature shows that focal firms (downstream in supply chain, the customers) which initiate supply chain sustainability (SCSIs) can increase their financial performance; however, the impact of SCSIs on the suppliers (upstream in supply chain, supplying firms) is unclear. This chapter analyzes the costs and benefits from the perspective of suppliers in SCSIs by focal companies. Furthermore, impact of suppliers-specific characteristics (firm size, resources dependence setting and self-sustainability) on SCSIs are investigated. According to the findings, we propose a performance implication-based conceptual model of SCSIs from the perspective of suppliers. We conclude that costs of SCSIs happen immediately to suppliers in implementation, but the benefits are expected in long run. These suppliers-specific characteristics are the decisive factors if suppliers can survive over short-run costs and reach the long-run benefits. This chapter extends the understanding of SCSIs from focal companies to suppliers while providing managerial support on collaboration between supply chain actors.

scholarly journals Going for the Gold: The Economics of the Olympics

2016 ◽  
Vol 30 (2) ◽  
pp. 201-218 ◽  
Author(s):  
Robert A. Baade ◽  
Victor A. Matheson
Keyword(s):  
Investment Decision ◽  
Cost Benefit ◽  
Good Effect ◽  
Costs And Benefits ◽  
Long Run ◽  
Short Run ◽  
Net Benefits ◽  
Opening And Closing ◽  
The Cost ◽  
Bidding Process

In this paper, we explore the costs and benefits of hosting the Olympic Games. On the cost side, there are three major categories: general infrastructure such as transportation and housing to accommodate athletes and fans; specific sports infrastructure required for competition venues; and operational costs, including general administration as well as the opening and closing ceremony and security. Three major categories of benefits also exist: the short-run benefits of tourist spending during the Games; the long-run benefits or the “Olympic legacy” which might include improvements in infrastructure and increased trade, foreign investment, or tourism after the Games; and intangible benefits such as the “feel-good effect” or civic pride. Each of these costs and benefits will be addressed in turn, but the overwhelming conclusion is that in most cases the Olympics are a money-losing proposition for host cities; they result in positive net benefits only under very specific and unusual circumstances. Furthermore, the cost–benefit proposition is worse for cities in developing countries than for those in the industrialized world. In closing, we discuss why what looks like an increasingly poor investment decision on the part of cities still receives significant bidding interest and whether changes in the bidding process of the International Olympic Committee (IOC) will improve outcomes for potential hosts.

Short Run Costs of Structural Reforms

2018 ◽  
Author(s):  
Rana Sajedi
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Potential Role ◽  
Product Market ◽  
Labour Markets ◽  
Structural Reforms ◽  
Costs And Benefits ◽  
Trade Off ◽  
Long Run ◽  
Short Run

Structural reforms that increase competition in product markets, or increase flexibility in labour markets, can entail short run output costs unless offset by a demand expansion. When monetary policy is constrained and cannot carry out this short run expansion, there is a potential role for fiscal policy. This chapter quantifies these short run fiscal costs and long run fiscal benefits of reforms, and investigates how the design of reforms can affect this trade-off. In the model, both the costs and benefits of reforms are generally small, although increasingly large reforms entail larger rises in deficit-to-GDP in the short run. Results suggest that reforms in labour markets have little effect on public finances in the long run, but can help to ameliorate the short run costs of product market reforms.

scholarly journals THE Impact of Disruption on the Relationship Between Exploitation, Exploration, and Organizational Adaptation

2021 ◽  
Vol 6 ◽  
Author(s):  
Yao Xiao ◽  
Jie Cen ◽  
Peder Soberg
Keyword(s):  
Organizational Learning ◽  
Competitive Advantage ◽  
Event Study ◽  
Organizational Adaptation ◽  
Exploration And Exploitation ◽  
International Firms ◽  
Moderation Model ◽  
The Impact ◽  
Exploration Exploitation ◽  
The Relationship

Firms should deploy exploration and exploitation to foster organizational adaptation. Previous research on exploration and exploitation lacked a focus on disruption implications in different contexts. This study aims to empirically test a moderation model including disruption events, exploration, exploitation, and organizational adaptation and enable a deeper understanding of organizational learning and innovation theory to yield competitive advantage and sustainability of innovative firms. Our results reveal that exploration is more effective during outside disruption events. The results do not support the concept that exploitation is more effective during inside disruptions. Disruptions also moderate the combined effect of exploration and exploitation. Although they are generally complementary in facilitating organizational adaptation, a singular focus on either exploration or exploitation is as effective as is combining exploration and exploitation during inside and outside disruption events. The results of an event study using seven Chinese international firms, including Alibaba, Meituan, Dianping, Baidu, Beibei, TP-link, and Maxio, provided 132 completed and usable questionnaires that supported our hypotheses. Our study contributes to a better understanding of disruption, exploration, exploitation, and related performance implications.

The Influence of Supply Chain Sustainability Practices on Suppliers

2016 ◽  
pp. 531-544 ◽  
Author(s):  
Xiaowei Wang ◽  
Lincoln C. Wood
Keyword(s):  
Supply Chain ◽  
Financial Performance ◽  
Conceptual Model ◽  
Firm Size ◽  
Costs And Benefits ◽  
Managerial Support ◽  
Long Run ◽  
Short Run ◽  
Sustainability Practices ◽  
The Impact

Literature shows that focal firms (downstream in supply chain, the customers) which initiate supply chain sustainability (SCSIs) can increase their financial performance; however, the impact of SCSIs on the suppliers (upstream in supply chain, supplying firms) is unclear. This chapter analyzes the costs and benefits from the perspective of suppliers in SCSIs by focal companies. Furthermore, impact of suppliers-specific characteristics (firm size, resources dependence setting and self-sustainability) on SCSIs are investigated. According to the findings, we propose a performance implication-based conceptual model of SCSIs from the perspective of suppliers. We conclude that costs of SCSIs happen immediately to suppliers in implementation, but the benefits are expected in long run. These suppliers-specific characteristics are the decisive factors if suppliers can survive over short-run costs and reach the long-run benefits. This chapter extends the understanding of SCSIs from focal companies to suppliers while providing managerial support on collaboration between supply chain actors.

Migration and US agricultural competitiveness

2013 ◽  
Vol 10 (2) ◽  
pp. 159-179 ◽  
Author(s):  
Philip L. Martin
Keyword(s):  
Farm Workers ◽  
Easy Access ◽  
Foreign Born ◽  
Guest Workers ◽  
Long Run ◽  
Short Run ◽  
Lower Wage ◽  
The Government ◽  
The One

Agriculture has one of the highest shares of foreign-born and unauthorized workers among US industries; over three-fourths of hired farm workers were born abroad, usually in Mexico, and over half of all farm workers are unauthorized. Farm employers are among the few to openly acknowledge their dependence on migrant and unauthorized workers, and they oppose efforts to reduce unauthorized migration unless the government legalizes currently illegal farm workers or provides easy access to legal guest workers. The effects of migrants on agricultural competitiveness are mixed. On the one hand, wages held down by migrants keep labour-intensive commodities competitive in the short run, but the fact that most labour-intensive commodities are shipped long distances means that long-run US competitiveness may be eroded as US farmers have fewer incentives to develop labour-saving and productivity-improving methods of farming and production in lower-wage countries expands.

Electricity consumption and economic growth in ASEAN

2017 ◽  
Vol 5 (2) ◽  
pp. 16
Author(s):  
Ahmad Ghazali Ismail ◽  
Arlinah Abd Rashid ◽  
Azlina Hanif
Keyword(s):  
Economic Growth ◽  
Energy Use ◽  
Electricity Consumption ◽  
Panel Estimation ◽  
Real Gdp ◽  
Long Run ◽  
Bidirectional Relationship ◽  
Short Run ◽  
Using Data ◽  
The Relationship

The relationship and causality direction between electricity consumption and economic growth is an important issue in the fields of energy economics and policies towards energy use. Extensive literatures has discussed the issue, but the array of findings provides anything but consensus on either the existence of relations or direction of causality between the variables. This study extends research in this area by studying the long-run and causal relations between economic growth, electricity consumption, labour and capital based on the neo-classical one sector aggregate production technology mode using data of electricity consumption and real GDP for ASEAN from the year 1983 to 2012. The analysis is conducted using advanced panel estimation approaches and found no causality in the short run while in the long-run, the results indicate that there are bidirectional relationship among variables. This study provides supplementary evidences of relationship between electricity consumption and economic growth in ASEAN.

Impact of exchange rate and oil price on the yield of sovereign bond and sukuk: Evidence from Malaysian capital market

2017 ◽  
Vol 5 (4) ◽  
pp. 27
Author(s):  
Huda Arshad ◽  
Ruhaini Muda ◽  
Ismah Osman
Keyword(s):  
Exchange Rate ◽  
Capital Market ◽  
Time Series Data ◽  
Oil Prices ◽  
Oil Price ◽  
Series Data ◽  
Sovereign Bond ◽  
Long Run ◽  
Short Run ◽  
The Impact

This study analyses the impact of exchange rate and oil prices on the yield of sovereign bond and sukuk for Malaysian capital market. This study aims to ascertain the effect of weakening Malaysian Ringgit and declining of crude oil price on the fixed income investors in the emerging capital market. This study utilises daily time series data of Malaysian exchange rate, oil price and the yield of Malaysian sovereign bond and sukuk from year 2006 until 2015. The findings show that the weakening of exchange rate and oil prices contribute different impacts in the short and long run. In the short run, the exchange rate and oil prices does not have a direct relation with the yield of sovereign bond and sukuk. However, in the long run, the result reveals that there is a significant relationship between exchange rate and oil prices on the yield of sovereign bond and sukuk. It is evident that only a unidirectional causality relation is present between exchange rate and oil price towards selected yield of Malaysian sovereign bond and sukuk. This study provides numerical and empirical insights on issues relating to capital market that supports public authorities and private institutions on their decision and policymaking process.

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