30 November 2020 3 5K Report

Hi everyone, i saw this figure and i'm really struggling to understand it, can anyone please help me. Its about the relationship between experiential learning and incremental behaviour/learning. In the article, they describe it like this "The following figure shows that by implementing experiental knowledge the firm will gain tacit knowledge and this will in turn decrease the perceived uncertainty about the market, which will reduce the need for incremental behaviour. The consequence of this is that there is actually a negative relationship between experiental learning and incremental behaviour (Forsgren, 2002)."

The sign between incremental learning and perceived uncertainty is a + so why is there a decrease? Does this mean that the more one engages in experiential learning, the lesser the incremental behaviour? I would appreciate if someone could explain this to me. Thank you.

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