Stan, M; Kannan, K; (2013) Taking time to do it right: The impact of time-compressing experience accumulation on organizational quality outcomes. In: Proceedings of the 35th DRUID Celebration Conference 2013 in Barcelona. DRUID: Barcelona, Spain.

Text Druid 2013 Srikanth+Stan.pdf Available under License : See the attached licence file. Download (698kB)

Abstract

Organizations develop new capabilities through "learning by doing". As firms accumulate more experience with production, their productivity increases at a decreasing rate. However, prior work has not examined how speed in experience accumulation (as opposed to the volume of accumulated experience) impacts the organizations' learning curve. We analyze this question using data from fertility clinics in the UK. We show that faster experience accumulation is associated with lower birth rates. We also show that the impact of time compression is exacerbated for clinics that mainly treat complex cases and is mitigated for clinics that employ an integrator to coordinate across the different specialist functions involved in the treatment process. Our results empirically show one mechanism -- shallower learning curves -- that gives rise to time compression diseconomies.

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