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Knowledge accumulation within an organization

Author

Listed:
  • Ngo van Long

    (McGill University = Université McGill [Montréal, Canada])

  • Antoine Soubeyran

    (Université de la Méditerranée - Aix-Marseille 2)

  • Raphael Soubeyran

    (LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier)

Abstract
We develop a simple model of task allocation for knowledge workers over their career within an organization. The human capital theory initiated by Becker (1962, 1964) has offered a rich analysis of an individual's life cycle investment in human capital. One of the main result of this literature states that human capital investments are undertaken at the early stage of the career because workers have then a longer period of time over which they can benefit from the return of their investments. In this paper, we consider a knowledge accumulation problem within an organization that cannot prevent the worker from quitting and using the knowledge outside the organization. In the first best situation, we show a similar result as in the human capital theory, i.e. the share of time allocated to knowledge creation tasks decreases over time. We then ask how this pattern is affected when the knowledge worker can leave the organization and benefit from this knowledge outside the organization. In this case, we obtain the novel result that the time path of the fraction of working time allocated to knowledge creation tasks is non-monotone. This fraction is highest at the early career stage, falls gradually, then rises again, before falling finally toward zero. We also show that an increase in the firm-specificity of knowledge can increase or decrease the life-time income of the knowledge worker.

Suggested Citation

  • Ngo van Long & Antoine Soubeyran & Raphael Soubeyran, 2012. "Knowledge accumulation within an organization," Working Papers hal-02118107, HAL.
    • Handle: RePEc:hal:wpaper:hal-02118107
    Note: View the original document on HAL open archive server: https://hal.science/hal-02118107
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    References listed on IDEAS

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    Cited by:

    1. Pham Thi Minh Ly & Wen-Hsiang Lai, 2017. "Fuzzy AHP Analysis of Firm-Level Knowledge Accumulation," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 16(03), pages 1-24, September.
    2. repec:spo:wpmain:info:hdl:2441/4et5cqo2b89lursqp7n50mt26c is not listed on IDEAS
    3. repec:hal:spmain:info:hdl:2441/4et5cqo2b89lursqp7n50mt26c is not listed on IDEAS
    4. Qing Liu & Larry D. Qiu, 2014. "Labor Training and Foreign Direct Investment," Review of International Economics, Wiley Blackwell, vol. 22(1), pages 151-166, February.
    5. G. C. Bento & A. Soubeyran, 2015. "Generalized Inexact Proximal Algorithms: Routine’s Formation with Resistance to Change, Following Worthwhile Changes," Journal of Optimization Theory and Applications, Springer, vol. 166(1), pages 172-187, July.
    6. Goetz, Renan & Yatsenko, Yuri & Hritonenko, Natali & Xabadia, Angels & Abdulai, Awudu, 2019. "The dynamics of productive assets, contract duration and holdup," Mathematical Social Sciences, Elsevier, vol. 97(C), pages 24-37.
    7. Thomas J. Carter, 2021. "Delayed firm‐paid general training," Southern Economic Journal, John Wiley & Sons, vol. 87(3), pages 937-951, January.

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