ORGANIZATIONAL LEARNING IN RESPONSE TO LARGE SCALE EVENTS A dissertation submitted to the Kent State University Graduate School of Management in partial fulfillment of the requirements for the degree of Doctor of Philosophy by Sandra R. Gustavson February, 2008 Dissertation written by Sandra R. Gustavson B.A., Allegheny College, 1960 M.A., Kent State University, 1991 Ph.D., Kent State University, 2008 Approved by _________________________________ Dr. Marvin Troutt, Chair _________________________________ Dr. Jay Weinroth _________________________________ Dr. Tricia Neisz _________________________________ Dr. Kathryn Wilson Accepted by: ________________________________ Doctoral Director, Graduate School of Management ________________________________ Dean, Graduate School of Management ii DEDICATION To my mother, Ruth Sandberg Gustavson, who encouraged me though the journey and who watches now with eternal vigilance as I take the final steps. ACKNOWLEDGEMENTS To my committee, Dr. Marvin Troutt, Dr. Jay Weinroth, and Dr. Tricia Neisz, I gratefully acknowledge your rich contributions and thank you for your enduring patience, for your insight, for your encouragement and belief in my ability to succeed and for keeping doors open throughout this journey, There were many friends whose love and support paved the way to completion. Some I will acknowledge by name here. Many more are implied. To each these, named and unnamed, I express my profound gratitude and love: To my dear friend and learning colleague, Nagah Ramadan, who was both coach and mentor through these years of study, and whose inspirational intellect, constant support, and clear sightedness kept me on a straight course and added perspective to this study, To my close friend and former employer, James Higgins, for creating an opportunity in Y2K that was “right up my alley!” and for being a steady and wise companion on the Y2K odyssey, To my many beloved friends, Wilma and Jim Donaldson, Nancy and Cliff Drobnick, Mila Roberts, Ross and Virginia Whitehead, only to name a few, and to my family, Wendy, Fred and Matthew Heitzenroder, whose constant love, prayers and well-wishes have helped me stay the course, To Dr. Paul Albert for his generous help with data collection, coordination, and interpretation. iii TABLE OF CONTENTS I. INTRODUCTION………………………………………………………………………...1 Year 2000……………………………………………………………………….....5 Unique Characteristics of Y2K…………………………...……………………….6 Crisis Events and Shock Learning………………………………………………………..9 Purpose of the Research…………………………………………………………….........10 Personal Interest in the Effects of the Y2K Event………………………………….…....11 Qualitative Methods: Case study Approach……………………………………..............13 Unit of Analysis………………………………………………………………………….14 Case Description: Kent State University IS Division…………………………………....17 Contextual Factors within the Kent State University IS Division……………….............17 Corporate Culture Conducive to Learning………………………………………17 A Strategy that Allows Flexibility………………………………………............18 Structure as a Contextual Factor………………………………………………...19 Environment of the IS Division…………………………………………………19 Issues of Current Interest in Organizational Learning…………………………………...20 II. RESEARCH CONTEXT: LITERATURE REVIEW……………………………………22 Organizational Learning in Perspective………………………………………………….22 Systemic Levels of Learning…………………………………………………….24 Zero Loop Learning……………………………………………………24 iv Single Loop Learning………………………………………………….25 Double loop learning…………………………………………………...27 Triple loop learning…………………………………………………… 28 Theories of Action……………………………………………………….29 Learning and Knowledge Framework…………………………………………..29 Knowledge Management and Knowledge Acquisition…………………………31 Explicit Knowledge…………………………………………………….32 Tacit Knowledge……………………………………………………….32 Acquisition of Knowledge in Groups…………………………………………...33 Failure to Produce Learning……………………………………………………………..35 Learning from Shocks in an Investment Environment…………………………………..37 Current Debates………………………………………………………………………….38 Need for Empirical Research…………………………………………………………….40 Public versus Private Organizations………………………………………………….….42 Comments on Organizational Learning………………………………………………….42 Research Questions……………………………………………………………………....43 III. METHODOLOGY………………………………………………………………………45 Major Methodological Choices………………………………………………………….45 The Research Design…………………………………………………………....47 Qualitative Research Approach………………………………………...47 Case Study Method…………………………………………………….48 Interview Study…………………………………………………… …..49 A Retrospective Study………………………………………………….50 Time Ordered Events…………………………………………………...51 v Multiple Sources of Evidence…………………………………………..52 Examination of Rival Theories………………………………………....52 Site Selection Strategy………………………………………………….53 Participants……………………………………………………………..54 Design Change: Variable Removed…………………………………………….55 Data Collection………………………………………………………………….56 Case Study Database……………………………………………………56 Data Collection Strategies……………………………………………...57 Data Analysis……………………………………………………………………58 Chronology……………………………………………………………..59 Inductive Analysis……………………………………………………...60 Validity………………………………………………………………………….61 Generalization…….…………………………………………………………….66 Summary………………………………………………………………………..66 IV. RESULTS………………………………………………………………………………..68 Themes in Y2K Results………………………………………………………………….68 IS Division in 1998-99…………………………………………………………..68 Scope of the Project ………………………………………………........71 Goals of Y2K Project…………………………………………………...72 Immovable Deadline……………………………………………………73 Hype, Expectations, and Defining Success……………………………………..74 Urgency…………………………………………………………………75 A Quiet Night…………………………………………………………..76 Defining Success……………………………………………………….77 vi Relationships, Trust and Cooperation…………………………………………...80 Internal Relationships…………………………………………………..80 Cooperation……………………………………………………………..81 External Relationships………………………………………………….81 Relationships with other University Departments……………………...81 Trust ……………………………………………………………………83 Reflection and Standardization………………………………………………….84 Reflection……………………………………………………………….85 Lost Opportunity………………………………………………………..85 After Y2K……………………………………………………………………….87 Recognition……………………………………………………………..88 Letdown………………………………………………………………...88 Impact of Y2K on HR Management……………………………………………………..88 Looking at HR impact using Kleimann’s model of HRM Practice……………..90 Employment Life Cycle within the IS Division during Y2K…………..92 Pre-selection Phase…………………………………………….92 Selection Phase………………………………………………...93 Post selection phase……………………………………………95 External Factors – Globalization………………………………98 Other Related HR Themes………………………………………………………99 Teams…………………………………………………………………...99 Changes in Administration……………………………………………100 After Y2K……………………………………………………………..101 The Emerging Importance of HRM in Organizational Learning……...............101 vii Summary: Areas of learning that emerged from Y2K………………………………….101 Unit of Analysis………………………………………………………………………...103 V. DISCUSSION…………………………………………………………………………..108 Overview………………………………………………………………………………..108 Context for Learning: Integrated Perspectives within Y2K……………………………112 Two approaches: Cleveland Division of Water and Kent IS Division…………………112 VI. CONCLUSION…………………………………………………………………118 Constraints to the Study………………………………………………………………...120 Application……………………………………………………………………………...121 Recommendations for Future Research………………………………………………...122 Unit of Analysis………………………………………………………………..122 The Role of HR in Organizational Learning…………………………………..123 Summary………………………………………………………………………………..123 VII. BIBLIOGRAPHY………………………………………………………………………125 VIII. APPENDICES………………………………………………………………………….141 APPENDIX A Methodology for Y2K Remediation at KSU………………………….141 APPENDIX B Questions……………………………………………………………...144 APPENDIX C Y2K: An Odyssey in Learning and Change……………………147 viii List of Figures Figure 1 Map of key topics in organizational learning and knowledge management…….30 Figure 2 Integration of perspectives in Y2K……………………………………………112 ix List of Tables Table 1 Time Chart for Chronology……………………………………………………..52 Table 2 Distribution of Participants……………………………………………………...55 Table 3 Methods for Establishing Validity………………………………………………64 Table 4 Kleimann’s Employment Life Cycle Model……………………………………91 Table 5 Chronology for Organizational Learning in Response to Y2K………………..107 Table 6 Summary of Major Themes in Y2K and 911………………………………….111 Table 7 Summary: Y2K in Cleveland Division of Water and KSU IS Division……….117 Table A-1 Major tasks performed by the IS Division for the Y2K Project……………….141 x ORGANIZATIONAL LEARNING AS A RESPONSE TO LARGE SCALE EVENTS Introduction to the Research Organizational learning has grown in recognition and importance since it first appeared as an area of interest in the literature in the 1950s and 1960s when the notion of organizational learning emerged (Cyert and March, 1963; Easterby-Smith, Crossan, & Nicolini, 2000; Easterby-Smith and Lyles, 2005). Growing quietly, it exploded as a research topic into journals in the 80s and has advanced rapidly since (Crossan and Guatto, 1996). Now established as a field of study, the current material available on organizational learning is so extensive, it could not be covered in a single publication (Easterby-Smith, Crossan, & Nicolini, 2000). Organizational learning is dynamic and still evolving with new areas of interest emerging as other fade. Organizational learning has been associated with successful strategy implementation, organizational performance and innovation required to maintain competitive advantage. Developing the capacity for organizational learning