Premium
THE VALUE OF EXPERIENTIAL LEARNING BY ORGANIZATIONS: EVIDENCE FROM INTERNATIONAL JOINT VENTURES
Author(s) -
Gupta Atul,
Misra Lalatendu
Publication year - 2000
Publication title -
journal of financial research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.319
H-Index - 49
eISSN - 1475-6803
pISSN - 0270-2592
DOI - 10.1111/j.1475-6803.2000.tb00811.x
Subject(s) - joint venture , international joint venture , experiential learning , value (mathematics) , joint (building) , business , sample (material) , marketing , organizational learning , contrast (vision) , test (biology) , industrial organization , business administration , economics , management , psychology , engineering , computer science , architectural engineering , mathematics education , machine learning , paleontology , chemistry , chromatography , artificial intelligence , biology
We use a sample of international joint venture announcements to test the hypothesis that organizations learn from experience, such that prior learning enhances the value of later ventures. We find that experience with ventures in the same foreign location, as well as experience with international joint ventures in general, is valued by the market. In contrast, experience in the same type of joint venture activity does not add any incremental value. These findings suggest the market recognizes and values some, although not all, forms of organizational learning.