Ramping up the Organizational Learning Curve: Assessing the Impact of Deliberate Learning on Organizational Performance Under Gainsharing

This study examined how suggestion-based employee knowledge generated through a gainsharing productivity improvement program affected organizational performance. We propose that in addition to an organizational learning curve based on production experience, there is also a learning curve for cost reduction ideas implemented under gainsharing. Using four years of monthly data from one organization, we found that, after taking into account knowledge depreciation, the cumulative number of implemented employee suggestions significantly contributed to lower production costs. Implications for gainsharing practice and knowledge management theory are discussed.