Modeling Retention Loss in Project Networks: Untangling the Combined Effect of Skill Decay and Turnover on Learning

Abstract

Understanding learning in networks of firms executing projects is critical to project management. Research has shown that turnover can slow learning. However, this research neglects the effect of skill decay when firms collaborate infrequently. A simulation model was developed to explore the combined effect of skill decay and turnover on performance in task-interdependent project networks. It was found that the relationship between skill decay and turnover on retention loss is more complex than suggested by past research. A theoretical model of retention loss in project networks that incorporates this complexity and that can accommodate earlier conflicting empirical findings was induced.