ABSTRACT
Learning is a process involving repetition and experimentation that enables tasks to be performed better and new production opportunities to be identified. Using case studies of twenty-four enterprises, this chapter explores the Russian defense sector’s process of learning how to restructure. Since learning is cumulative (what is learned in one period builds upon what was learned earlier), it can be viewed as an accumulation of competencies or, more generally, an accumulation of intangible capital. Following Teece et al. (1994), we will focus on: (1) allocative competence—deciding what to produce and how to price it; (2) transactional competence—deciding whether to make or buy and in which particular organizational configuration to do so; and (3) administrative competence—how to design organizational structures and policies to enable efficient performance.
