The Impact of Technology on the Learning Curve of Service Organizations

The learning curve has been an important tool in the management of manufacturing operations since mid-century. Considerable empirical evidence documents the existence of learning curves in a variety of firms and industries. The efficiency gains captured by the learning curve are generally considered to stem from, in part, from technology improvements. However, research into the dynamics of the learning curve in service operations has been limited. And, research into the effects of process technology changes on learning in service organizations has been even more limited. This study examines productivity changes in a professional service organization over a ten-year span, in order to determine the magnitude and significance of the learning curve in this environment. The results indicate the presence of a significant, albeit shallow, learning curve. Additionally, the results indicate that whether technology improvement has an effect on the rate of learning is contingent on the type and use of the technology. Technology improvements that monitor and control the process have no significant effect on organizational learning, while technology improvements in the process lead to significant improvements in the rate of learning.