An Empirical Investigation of the Microstructure of Knowledge Acquisition and Transfer Through Learning by Doing

Does knowledge acquired through learning by doing on one shift transfer to a second shift when it is introduced at a manufacturing plant? The answer to this question has important theoretical implications about where knowledge is embedded in organizations and about sources of productivity growth. The answer also has important practical implications for managers planning to introduce additional facilities. This paper analyzes the amount of transfer across shifts at a manufacturing facility. Specifically, we analyze the amount of knowledge that is carried forward when the plant makes the transition from one to two shifts. We also investigate whether the rate of knowledge acquisition differs by shift, and we estimate the amount of transfer that occurs across shifts once both are in operation. In addition, we study transfer over time by analyzing whether knowledge acquired through learning by doing is cumulative and persists through time or whether it depreciates.