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Learning and Knowledge Depreciation in Professional Services

Author

Listed:
  • Tonya Boone

    (Mason School of Business, The College of William and Mary, Williamsburg, Virginia 23187)

  • Ram Ganeshan

    (Mason School of Business, The College of William and Mary, Williamsburg, Virginia 23187)

  • Robert L. Hicks

    (Department of Economics and Thomas Jefferson School of Public Policy, The College of William and Mary, Williamsburg, Virginia 23187)

Abstract
Organizational knowledge is a critical source of competitive advantage for professional service firms. Learning from experience and sustaining past knowledge are critical to the success of such knowledge-driven firms. We use learning curve theory to evaluate learning and depreciation in professional services. Our results, based on seven years of project data collected from an architectural engineering (A/E) firm, show that (a) professional services exhibit learning curves, (b) there is virtually no depreciation of knowledge and, (c) the rate of learning accelerates with experience.

Suggested Citation

  • Tonya Boone & Ram Ganeshan & Robert L. Hicks, 2008. "Learning and Knowledge Depreciation in Professional Services," Management Science, INFORMS, vol. 54(7), pages 1231-1236, July.
    • Handle: RePEc:inm:ormnsc:v:54:y:2008:i:7:p:1231-1236
    DOI: 10.1287/mnsc.1070.0849
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    References listed on IDEAS

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