Essays on the Locus of Learning and Innovation

This dissertation comprises three essays that explore the locus of learning and innovation in organizations and their environments, and the resulting impact on firm strategy. The first essay examines how firms can learn from a diverse set of sources. The returns to social learning are expected to...

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Main Author: Fu, Carolyn Jiaming
Other Authors: Reagans, Ray E.
Format: Thesis
Published: Massachusetts Institute of Technology 2022
Online Access:https://hdl.handle.net/1721.1/145048
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author Fu, Carolyn Jiaming
author2 Reagans, Ray E.
author_facet Reagans, Ray E.
Fu, Carolyn Jiaming
author_sort Fu, Carolyn Jiaming
collection MIT
description This dissertation comprises three essays that explore the locus of learning and innovation in organizations and their environments, and the resulting impact on firm strategy. The first essay examines how firms can learn from a diverse set of sources. The returns to social learning are expected to be low in contexts rife with interdependencies, where practices from one context may be incompatible with those from another. Using a computational simulation, this essay shows that centralized social learning proves surprisingly robust to this challenge, and that to resolve it, firms should counterintuitively double down on social learning. The second essay examines how firms can leverage the market for systemic innovation. This is a task typically understood to be best accomplished through vertical integration, where the firm can easily explore alternative resource combinations. However, using a qualitative archival analysis of an opera company and a computational simulation, this paper shows that specialized producers’ reputational concerns lead them to undertake systemic innovation, the value of which a firm can in fact undercut by trying to vertically integrate. The third essay examines how firms should take audience learning into account during experimentation. While firm learning calls for its experiments to be conducted as separately as possible from their core activities, audience learning (especially in cultural markets) often necessitates their integration in order to properly value an innovation. This essay uses a qualitative archival analysis of a ballet company to elucidate the challenge this creates for experimentation, and how firms can address this by strategically choosing their audience, and periodically replacing their experimentation units.
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spelling mit-1721.1/1450482022-08-30T04:03:42Z Essays on the Locus of Learning and Innovation Fu, Carolyn Jiaming Reagans, Ray E. Sloan School of Management This dissertation comprises three essays that explore the locus of learning and innovation in organizations and their environments, and the resulting impact on firm strategy. The first essay examines how firms can learn from a diverse set of sources. The returns to social learning are expected to be low in contexts rife with interdependencies, where practices from one context may be incompatible with those from another. Using a computational simulation, this essay shows that centralized social learning proves surprisingly robust to this challenge, and that to resolve it, firms should counterintuitively double down on social learning. The second essay examines how firms can leverage the market for systemic innovation. This is a task typically understood to be best accomplished through vertical integration, where the firm can easily explore alternative resource combinations. However, using a qualitative archival analysis of an opera company and a computational simulation, this paper shows that specialized producers’ reputational concerns lead them to undertake systemic innovation, the value of which a firm can in fact undercut by trying to vertically integrate. The third essay examines how firms should take audience learning into account during experimentation. While firm learning calls for its experiments to be conducted as separately as possible from their core activities, audience learning (especially in cultural markets) often necessitates their integration in order to properly value an innovation. This essay uses a qualitative archival analysis of a ballet company to elucidate the challenge this creates for experimentation, and how firms can address this by strategically choosing their audience, and periodically replacing their experimentation units. Ph.D. 2022-08-29T16:29:29Z 2022-08-29T16:29:29Z 2022-05 2022-06-09T14:30:43.984Z Thesis https://hdl.handle.net/1721.1/145048 In Copyright - Educational Use Permitted Copyright MIT http://rightsstatements.org/page/InC-EDU/1.0/ application/pdf Massachusetts Institute of Technology
spellingShingle Fu, Carolyn Jiaming
Essays on the Locus of Learning and Innovation
title Essays on the Locus of Learning and Innovation
title_full Essays on the Locus of Learning and Innovation
title_fullStr Essays on the Locus of Learning and Innovation
title_full_unstemmed Essays on the Locus of Learning and Innovation
title_short Essays on the Locus of Learning and Innovation
title_sort essays on the locus of learning and innovation
url https://hdl.handle.net/1721.1/145048
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