A Missing Piece of Mutual Learning Model of March (1991)

Abstract

The mutual learning model described in “Exploration and Exploitation in Organizational Learning” (March, 1991) concludes that “slow learning on the part of individuals maintains diversity longer, thereby providing the exploration,” based on the results of computer simulations. However, the simulations of March (1991) excluded both ends of the socialization rate domain. When compensating for those missing portions, there is an optimal socialization rate that actually maximizes the average knowledge level. This is because low learning on the part of individuals actually causes frequent lock-ins and impedes learning. This optimal socialization rate may be a common rate for socialization, and we cannot deny this possibility by using only computer simulations. Moreover, this high knowledge level is achieved in a non-equilibrium state.