Creating and transferring knowledge for productivity improvement in factories

Can a firm accelerate its learning curve if knowledge about the production function is incomplete? This article identifies a production line specifica lly set up to create technological knowledge about its production function through scientific experimentation (formal learning) as opposed to learning by doing. The organizational structure of this line was very successful in creating technological knowledge. Formal learning resulted in huge product ivity improvements. Replication of this organizational structure on three p roduction lines in other plants within the same firm fell short of expectat ions. Formal learning did not result in similar productivity improvements. Our research suggests two factors that may facilitate creation and transfer of technological knowledge: management buy-in and knowledge diversity to s olve interdepartmental problems.