Investigation and validation of technological learning versus market performance

Abstract This paper details a journey of discovery for conceptualizing, identifying, documenting and validating instances of higher-order learning, its nature, as well as its content, process, context and impact. The authors are engaged in a multi-industry, longitudinal, empirical study to investigate the relationship between technological learning activities and firm market performance. This relationship is postulated to vary under specific firm, market and industry conditions, so that the effects of learning can enhance or limit market performance, emerge over different periods of time, and require varying levels of investment. For this paper, we conduct a pilot study using a preliminary sample of 19 firms from four industries over a period of twelve years as a pilot study for a broader analysis of approximately 100 firms in these industries covering 25 years. The empirical analysis in this pilot study shows little evidence of a relationship between technological learning and market performance; however, the lack of evidence is due to the crude nature of the measures used and the limitations of available data. A more comprehensive research design is proposed which will provide a better test of the relationship.

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