Is increased knowledge or enhanced skills the primary result of learni
ng from experience? This study addresses this question by examining th
e effects of experience of administrators and the average experience o
f the administrators' units on four aspects of information-processing
performance: need for breadth of information, need for depth of inform
ation, receiving more information than needed, and receiving less info
rmation than needed. That is, the administrator is viewed as an indivi
dual learner operating within an ecology of other learning administrat
ors. Researchers have assumed that skills (information-processing abil
ities gained from learning by doing) are more important than knowledge
(the relatively formal and established facts, rules, policies, and pr
ocedures within the organization) in predicting how the individual and
context effects of experience affect administrators' information-proc
essing performance. However, using a survey of administrators in a mul
ti-unit organization (N = 415), it is demonstrated that a model that a
ssumes that knowledge is the primary intervening variable between expe
rience and enhanced information processing correctly predicts both the
individual and contact effects of experience on information processin
g, such as the negative relationship between individual experience and
the need for breadth and depth of information and getting less inform
ation than needed, and the negative relationships between average expe
rience of an administrators' unit and receiving more information than
needed. A model based on skills-acquisition as the primary intervening
variable between experience and information-processing performance pr
edicts contrary, and hence incorrect, results, leading us to conclude
hat knowledge is the primary result of experience for adminstrators. T
he experience/knowledge relationship is argued to have implications fo
r understanding worker satisfaction and the liability of newness.