Effects of knowledge accumulation strategies through experience and experimentation on firm growth

摘要

This study aims to identify the effects of knowledge accumulation strategies on firm growth. Especially, experience and experimentation are considered key strategies of knowledge accumulation in terms of qualitative aspects. We define experience as the composition of knowledge accumulation, such as the depth and breadth of knowledge base in the firm, and experimentation, as the method of knowledge accumulation, such as repetitive or new ways of learning. Even with the same level of effort, there are differences in the degree of knowledge accumulation depending on experience and experimentation, resulting in heterogeneity in firm competitiveness.Based on a unique panel dataset of Korean listed manufacturing firms from 1985 to 2014, we find the importance of persistence experience in a specific knowledge domain as the depth of knowledge accumulation. The method of knowledge accumulation should change with the depth of experience. Specifically, repetitive learning (i.e. no experimentation) is needed when the depth of experience is less. New ways of learning (i.e. experimentation) are needed when the depth of experience is more. Our findings suggest why competitive advantage between firms differs by considering the qualitative aspects of knowledge accumulation strategies. We also suggest knowledge accumulation strategies and policy implications for sustainable growth.