A central tenet of work in the Carnegie School tradition is the notion of “learning-by-doing”— organizations learn over time through feedback. In this paper we argue that the learning-by-doing account overlooks the fact that an organization's decision-making structure is often...

We take a microfoundational approach to understanding the origin of heterogeneity in firms’ capacity to adapt to technological change. We develop a computational model of individual-level learning in an organizational setting characterized by interdependence and ambiguity. The model leads to...