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Journal Article

Learning and Knowledge Depreciation in Professional Services

Tonya Boone, Ram Ganeshan and Robert L. Hicks
Management Science
Vol. 54, No. 7 (Jul., 2008), pp. 1231-1236
Published by: INFORMS
Stable URL: http://www.jstor.org/stable/20122471
Page Count: 6
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Learning and Knowledge Depreciation in Professional Services
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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.

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