A learning curve explanatory theory for team learning valuation

Abstract

PurposeThis study seeks to examine how the quantitative semantics of the learning curve phenomenon can be employed in order to derive monetary information for team learning observed within knowledge‐intensive production environments.Design/methodology/approachSoftware development is selected as an identical example of a team‐based, knowledge‐intensive production environment. The interaction of learning rate of the developer teams and the improvements on their average solving time (i.e. productivity) is modelled as a Lotka‐Volterra predator‐prey interacting populations system establishing a causal relationship between the human capital (HC) of organizational teams and the observed learning curve effects on their performance. In addition, empirical evidence illustrates that the estimated learning rates capture the entire range of team learning effects on performance fluctuations caused by the HC.FindingsThe fluctuations on the learning rates can be interpreted as a result of the HC variability across the population of developer teams. Hence, the cost implications of the HC within knowledge‐intensive production environments can be rationalised using the quantitative semantics of the learning curve phenomenonResearch limitations/implicationsThe learning curve is associated with the cost side of the organizational income‐generating process limiting its potential valuation applications for team learning observed within the context of the production environments.Originality/valueThe study offers a theoretical justification, supported by empirical evidence, for employing the mathematical expression of the learning curve paradigm to rationalize the financial consequences of team learning observed within production environments.

Experiences from Measuring Learning and Performance in Large-Scale Distributed Software Development

“…Furthermore, existing software engineering literature related to learning and performance does not make any distinction between individual learning within teams and group learning and more research is required to better understand the impact of the teamwork on performance [9], [14]- [16], [18], [19]. We intend to further investigate how team stability and cross-team cooperation stability relates to psychological safety of teams and thus to learning behaviors and team performance.…”

“…this kind of learning is triggered by activities like trainings and investments in research & development [25]. This type of learning has been very rarely investigated by software engineering researchers [19]. Thus, we also intend to investigate what is the interplay between autonomous learning and induced learning in teams involved in large-scale software projects.…”

“…Zorgios et al [19] proposed an explanatory theory for team learning related to software development. The authors modeled the interaction between learning rates of development teams and improvements in their productivity, establishing a causal relationship between the human capital and different types of learning of organizational teams and the productivity curve.…”

Aggregate production planning with learning effect and uncertain demand

“…However, organizational learning (or team learning) is also a factor that cannot be ignored for productivity improvement. Zorgios et al (2009) showed that in the development of software, teamwork can improve learning effect. Nowadays, the company studied in this paper still lacks teamwork atmosphere, and thereby, the organizational learning effect is very low in improving productivity.…”

Analyzing impact of experience curve on ROI in the software product line adoption process

“…A learning curve explanatory theory for team learning valuation [24] This paper examines how the learning curve effect can be used to derive monetary information for team learning observed within knowledge-intensive production environments. For this, software development is selected as an identical example of a team-based, knowledge-intensive production environment.…”