Replication using templates: Does the unit learn from itself, the template, or both?
Transferring valuable practices within the firm is an important yet difficult task for many firm types, especially multi-unit firms. One way that firms choose to transfer practices is through the use of templates—working examples of the new practice that act as models. Using data from a Fortune 100 retail chain, I show that the use of templates affects the way in which units learn to implement the practice. Because managers face tradeoffs when devoting attention to implementing the new practice, they must balance learning from the template with incorporating their own local experience with the new practice. Overall, my results suggest that choosing many templates is less important than choosing a few templates with superior performance for firms whose units or contexts are similar.
