Creation and utilization of organizational knowledge: An empirical study of the effects of organizational learning on strategic decision-making

This dissertation developed and empirically examined a conceptual model regarding the effects of organizational learning processes and decision contexts on organizational knowledge, and impacts of organizational knowledge on strategic decision outcomes. It is argued that organizations learn primarily through two processes, conceptualized as modes of learning. The interactive mode consists of informal social processes of organizational dialogue and is useful in creating organizational knowledge when the decision context is equivocal. Conversely, the informational mode, defined as formalized processes of collecting, distributing and processing data, is suitable in an uncertain context. It further argued that organizational knowledge enhances the effectiveness and likelihood of implementation of strategic decisions.;Results provide support for most of the hypotheses. Organizations in the equivocal context created more complex, consensual, and overall knowledge when they used the interactive mode rather than the informational mode. Conversely, organizations in the uncertain context created more complex, accurate, and overall knowledge when they used the informational mode. While complex interrelationships were observed between various dimensions of organizational knowledge and decision outcomes, organizational knowledge generally contributed to better decisions and enhanced the likelihood of implementation of these decisions.;The findings suggest that organizational learning is much more complex than portrayed in most literature. Researchers need to develop more complex conceptualizations of organizational learning and knowledge and examine them by using a variety of measures. Rather than making a general statement that organizational knowledge is a key to enhance organizational performance, it may be more appropriate to untangle the complexities and examine the effects of specific dimensions of organizational knowledge on various organizational outcomes. To effectively learn, organizations need to understand the uniqueness of each mode of learning and use the mode which is suitable to their context.;A 2 x 2 quasi-experimental design was used to examine the effects of the modes of learning and decision contexts on complexity, accuracy, consensual, and overall knowledge. One hundred and twenty-five MBA students participated in one of seven iterations of a rich organizational simulation which were conducted over a period of two and a half months. The simulation brought together participants in roles of 20 senior managers of a diversified company for a one-day strategic decision making meeting at the Corporate Headquarters. Card sorting procedures, adjacency matrices, process observations, and questionnaires were used to collect data. Data were analyzed by using tools of cognitive mapping, social network analysis, ANCOVA, and regression.