Learning and Institutional Change: Based on the Theory of Institutional Change
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Shuifeng Fang and Dexiang Zhang
This paper focuses on the interaction between learning and institutional change. Theory of institutional change provides the theoretical basis for the paper. Individual and organizational learning is a good perspective for delving into institutional change. The driving force of institutional change is either the change of external environments or occurrence of internal learning. The investments of knowledge and skills shape the perception for external environment. The cognitive structure and the mental models will alter because of the new perception for the world. When the same mental model is confirmed by the environment feedback many times, the mental model is stabilized and becomes belief. Belief systems are the internal representation and institutions are the external manifestation of that representation. This implies that the occurrence of learning leads to institutions evolving. The kinds of knowledge and skills acquired by learning shape the direction of institutional change, and the quantity and quality of learning determines the speed of institutional change.
Learning process; Institutional change; Knowlwdge and skills; Mental models