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Learning to time capacity expansions: an empirical analysis of the worldwide petrochemical industry, 1975-95

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This paper examines how firms may learn to better time their capacity expansion decisions through their own and their rivals' past experiences. A review of the literature shows that there may be several reasons for firms to bunch their capacity additions or 'hop on an investment bandwagon.' Given the substantial evidence of organizational learning, firms may be expected to improve their timing skills of capacity additions through their previous capacity expansion experience. Hypotheses are developed both for proprietary learning and learning at the industry level, and for forgetting. These hypotheses are tested on a database consisting of 72 companies operating in the petrochemicals industry in the United States, Europe, and Japan from 1975 to 1995. The results indicate that learning in timing capacity expansion decisions comes primarily from within firms through an accumulation of their poor outcomes. However, this timing skill is far more apparent in greenfield than incremental expansion decisions.Printed Journal

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Ketersediaan

Call Number	Location	Available
	PSB lt.dasar - Pascasarjana	1

Penerbit	John Wiley & Sons.,
Edisi	-
Subjek	Expansion Organizational learning International Petrochemicals industry Hypotheses studies Management decisions
ISBN/ISSN	1432095
Klasifikasi	-
Deskripsi Fisik	-
Info Detail Spesifik	-
Other Version/Related	Tidak tersedia versi lain
Lampiran Berkas	Tidak Ada Data