Organizational Learning, Innovation and Internationalization: A Complex System Model

Abstract

Research on organizational learning, innovation and internationalization has traditionally linked these concepts through linear causality, by considering any one of them as the cause of another, an approach that might be considered contradictory and static. This paper aims to clarify these relationships and proposes a dynamic theoretical model that has mutual causality at its core and is based on ideas originating in complexity theory. The final model results from case studies of two clothing sector firms. The authors consider that the three concepts constitute a complex system and can adapt and transcend, as any alteration can take the system to the edge of chaos. Adaptability is fostered by concentration, improvement and discussion. Transcendence is fostered by attention, dialogue and inquiry. The different paces of the two case study companies led their systems to two different models: the incremental complex adaptive system model and the global complex generative system model. The incremental model is characterized by adaptive learning, incremental innovation and low internationalization; and the global system is characterized by generative learning, radical innovation and global internationalization. The paper ends with an exploration of the academic and management implications of the model.

The contribution of internalisation theory to international business: New realities and unanswered questions

“…The key issue here is that we have three interacting processes:-internationalisation, innovation and organisational learning (Chiva, Ghauri and Algere 2014). The Uppsala approach examines the influence of organisational learning on internationalisation whilst internalisation theorists concentrate on the effect of innovation on internationalisation.…”

The change of production systems through consultancy involved projects: a multiple case study in Chinese SMEs

“…Argyris and Schön 1996, Crossan et al 1999, Huber 1991. Organisational learning is a process through which the organisation's mental models, rules, procedures or knowledge can be modified or improved (Chiva et al 2014, Edmondson 2002, Huber 1991.…”

Organising the Training Process in Polish Companies Operating on International Markets

“…Training policies (3) create an internal environment that enhances the company's ability to learn, which is a crucial factor in innovations coming into being. Introducing new knowledge and developing and distributing existing knowledge develops a new way of perceiving or understanding things, which may play an important role when coming to grips with the environmental changes that accompany a company's entrance to new markets (Chiva, Ghauri & Alegre 2013). Well-designed training also (4) boosts productivity, mostly because individual specialised skills are emphasised or enhanced (Valle et al 2000).…”

“…To this end, global training programmes can be implemented into every branch of a multinational company (Moumita & Zaman 2013). Additionally internationalisation is viewed as a learning and knowledge accumulating process, which leads firms operating on international markets to generate more knowledge than their counterparts that confine themselves to national market (Chiva, Ghauri & Alegre 2013). This learning opportunity can be attributed to ideas coming from a greater number of new and different markets and cultural perspectives (Pittiglio, Sica & Villa 2013).…”