Managing Higher Order Technological Learning: A Factor in Predicting Firm Market Performance?

This study explores the link between higher order technological learning (hyperlearning) processes and firm performance (profitability). The model used is one where learning causes technology transfer which enhances the firm’s strategic assets and therefore increases profitability. The theoretical concepts of technological learning are established and empirical qualitative evidence about technological learning is presented as it occured at three distinct levels (strategic, tactical, and operational) within 16 firms from five industries between 1990 and 1992. The qualitative findings are then correlated to the quantitative evidence, namely firm profitability data that cover the time period from 1985 to 1993. The qualitative evidence was compiled by in-depth interviews of sixteen high technology companies headquartered in the USA, Canada, Germany, and France. The quantitative analysis is based on correlation and therefore evidence of relationships between the levels of learning and profitability as well as between the levels of learning and changes in profitability due to a learning effect. The hypotheses indicate that the levels of learning do not have any significant correlation to profitability. The paper attempts to define further research on the topic as well as reasons to explain these phenomena. Introduction and conceptual framework In order to understand some of the terms that are fundamental to the empirically derived conceptual constructs, a number of these terms is defined. Rogers (1983: 12) defines technology as “a design for instrumental action that reduces the uncertainty in the cause-effect relationships involved in achieving a desired outcome”. Technology can also be defined as systematic knowledge thus providing the basis for viewing technology transfer from an information theoretic and meta-cognitive / linguistic perspective (Carayannis, 1994b). 1060-3425/96 $5.00