1. Seeking the Robust Core of Organizational Learning Theory Steven E. Wallis, Ph.D. Author, Editor, Consultant & Metatheorist swallis@sbcglobal.net Fielding Graduate University Winter Session January 6-10, 2009 Santa Barbara, California

2. 2 Steven E. Wallis, Ph.D. A brief bio… Steven E. Wallis received his Ph.D. from Fielding Graduate University in 2006. His academic work focuses on “theory of theory” where he is pioneering insights and tools to support scholars as they create improved theory for more effective practice. Currently Steve is editing an academic book, “Cybernetics and Systems Theory in Management: Tools, Views and Advancements “ with IGI Global.

3. 3 Abstract: The underlying theory has not been well defined for organizational learning theory (OLT) Insights from complexity theory (CT) suggest a new view on the structure of theory An interdisciplinary cross-section of OL theory is analyzed to determine an overall level of “robustness” (objective internal integrity) This investigation found SE theory to have a robustness of 0.16 (on a scale of zero to one)

4. 4 OLT is not well defined so we ask… How might we define theory more clearly? How might we test theory – before practice?

5. 5 What is “theory” ? Conceptually similar to schema, mental models, frame for sensemaking, or lens to see the world A set of interrelated propositions Begs the question… … How well interrelated are they?

6. 6 Applying CT to Understand a System of Thought Complexity theory suggests the importance of Mutual Causality & Interdependence Because a theory may be understood as a system, it may be possible to apply that general idea to the propositions within a theory So… more interdependence of aspects suggests more validity of theory

7. 7 More Co-causality Between Aspects Makes a Theory More Robust Low robustness is seen in a list of bullet-point claims (A is true) Slightly more robustness may be seen in causal propositions (A causes B) High robustness is seen in Newton’s formula: F=ma (each is co-causal)

8. 8 …IMPORTANTLY… Highly robust theories of math & physics have shown more effective falsifiability & application than the low-robust theories of the social sciences

9. 9 Methodology 1. Investigate papers on organizational learning to find concise propositions of theory 2. Identify those propositions that are co- causal or “concatenated” (concatenated propositions describe links between multiple aspects and multiple causalities) 3. Calculate robustness Robustness is the ratio of concatenated aspects to all aspects in the body of theory.

10. 10 Abstractly… is the proposition concatenated, or not? A is true, B is true, C is true. These are atomistic truth-claims (not concatenated) A causes B, B causes C, C causes D. These are linear truth-claims (not concatenated) (Worse, B and C are redundant!) “A and B cause C” This is a “concatenated” relationship and so is more complex and is considered more useful to this form of analysis

11. 11 Test of Robustness-Example Ohm’s law of electricity (I=E/R) contains three claims: 1. Changes in amps and resistance cause changes in volts 2. Changes in volts and resistance cause changes in amps 3. Changes in amps and volts cause changes in resistance There are three aspects (amps, volts, resistance) and all three are concatenated Three divided by three equals one So, Ohm’s law has a robustness of one It is falsifiable and effective in application

12. 12 Organizational Learning Theory There are 19 aspects (identified as dimensions in the following diagram) Of these, three aspects are concatenated (Exploration, Exploitation, and Firm success) because they emerge from two or more other dimensions This theory has a robustness of 0.16 (the result of three concatenated aspects divided by 19 total aspects).

13. 13 Influences between aspects of Organizational Learning Theory More firm success More exploration (acquisition of new knowledge) More exploitation (use of existing knowledge) Longer life of firm More shared beliefs More connectedness More socialization More formalization More distribution of knowledge More involvement with other firms More cross- functional affiliations More diverse affiliation More job rotation More industry instability More strategic instability More capital investment More new firms created More knowledge Greater knowledge imbalance Causes Less

14. 14 Paths to Improve Robustness (and so improve falsifiability & usefulness) Drop extraneous aspects “Close the loop” by identifying how existing aspects are causally related Empirical testing is not indicated at this low level of robustness

15. 15 Importance of creating Robust Version of Organizational Learning Theory 1. More reliable/effectively useable 2. May be used to improve human condition 3. More falsifiable (and so improvable)

16. 16 To Conclude… Organizational Learning theory suggests great potential benefits for individuals and organizations. The concept of robustness suggests great potential for advancing Organizational Learning theory OLT has a low robustness (0.16) suggesting it is not effective in practice Let’s collaborate to improve OLT!