Routine-Based View of Organizational Learning and Mechanisms of Myopia

Abstract: Levinthal and March (1993) are popularly supposed to have developed a concept "myopia of learning" to reveal negative aspects of organizational learning. However, myopia of learning is not a problem in itself. The myopia of learning means that organizations give precedence to exploitation over exploration. From a routine-based view of organizational learning, myopia of learning only becomes a problem when the mechanisms promoting exploitation take precedence over the mechanisms promoting exploration at all levels of the organization.Keywords: organizational learning, myopia of learning, routine1. IntroductionSome studies cite Levinthal and March (1993) as identifying the negative aspects of learning because of the term 'myopia'. However, Levinthal and March essentially advocated a realistic theory on organizational learning, which states that there are limitations to learning.Myopia only becomes problematic in certain conditions; myopic behavior in itself is not problematic for an organization.It is more important to be aware that learning mechanisms themselves can cause myopia, and consider how to make the best use of organizational learning, which is essentially limited.2. The Myopia of LearningLearning is not all-powerful. Even the mechanisms that promote learning can contain limiting factors and cause myopia. Levinthal and March advocated three types of myopia of learning: (a) temporal myopia, (b) spatial myopia, and (c) failure myopia.Temporal myopia means overlooking distant times. Learning tends to sacrifice the long run for the short run (short term > long term). Although the learner may acquire unique capabilities, the skills learned may become an obstacle in the long term.Spatial myopia means overlooking distant places and the larger picture. Often the best strategies for individual parts of the system are not the best strategies for the entire system. Consequently, promoting learning in the individual parts of the system can sometimes cause problems in the overall system (parts > whole).Failure myopia means overlooking the failures in the organization in contrast to successes. If the organization continues to succeed through learning, this also builds up capability and confidence. A successful person has power within an organization and a definite influence on organizational decisions. Consequently, the organization tends to become biased toward emphasizing past successes over past failures, and tends to ignore risks (success > failure).The limitations on learning advocated by Levinthal and March are Routine-based view of organizational learning and mechanisms of myopia based on the idea that these myopias of learning are caused by the mechanisms used to promote learning.3. Two Mechanisms of Learning3.1. SimplificationAn organization must interpret its experiences to learn. To do this, the organization must simplify complex environments to be recognized. There are two methods to achieve this, given below.(i) construction of buffersThe environment can be simplified by departmentalization and sequential attention, rather than aiming for multiple goals at once.(ii) enactmentThe effectiveness of the construction of buffers depends on the divisibility of the problems. It cannot function when the problems cannot be divided. However, the divisibility of the problems depends on the cognitive framework of the organization toward its environment. Different organizations draw different meanings from the same situation. Consequently, the divisibility is determined not as an external technical problem, but as an organizational problem.3.2. SpecializationIf an entire system such as an organization attempts to adapt to the environment all at once, the interaction between the parts in the system becomes complicated and unstable. Assuming that each of the parts adapts to their environments to promote learning, the success in adapting one part within the system has two effects: relieving the pressure for adaptation in another part, and developing a greater adaptation capacity than other parts. …