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Knowledge Creation Facing Hierarchy: The Dynamics of Groups Inside The Firm

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Abstract

The aim of the paper is to analyze the selection of routines within organizational structures characterized by different cognitive representations. Following a brief discussion on the role of hierarchy and the related problem of organizational practice selection in the evolutionary literature, we model the interactions between different groups within a firm trying to interfere with its coordination mechanisms in order to support their own idiosyncratic practices. Numerical simulations highlight differences in the ability to learn in different organizational set-ups with diverse patterns of knowledge distribution, also reproducing configurations analysed in the empirical literature. It is shown that networking schemes are the more profitable organizational configurations because of their dynamics of learning, although they are very sensitive to the truce problem.

Suggested Citation

  • Nathalie Lazaric & Alain Raybaut, 2004. "Knowledge Creation Facing Hierarchy: The Dynamics of Groups Inside The Firm," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 7(2), pages 1-3.
    • Handle: RePEc:jas:jasssj:2004-8-1
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    Cited by:

    1. Pritika Rao, 2020. "Behavioral economics in the time of coronavirus: rebellion or “willful ignorance” in the face of “grand challenges”," Review of Evolutionary Political Economy, Springer, vol. 1(1), pages 137-143, May.
    2. Gennady Shkliarevsky, 2022. "Is Our Research Productivity In Decline? A New Approach in Resolving the Controversy," Papers 2203.01235, arXiv.org.
    3. Markus C. Becker & Nathalie Lazaric & Richard R. Nelson & Sidney G. Winter, 2005. "Applying organizational routines in understanding organizational change," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 14(5), pages 775-791, October.
    4. Ash Amin & Patrick Cohendet, 2012. "The Firm as a ‘Platform of Communities': A Contribution to the Knowledge-based Approach of the Firm," Chapters, in: Richard Arena & Agnès Festré & Nathalie Lazaric (ed.), Handbook of Knowledge and Economics, chapter 18, Edward Elgar Publishing.
    5. Agnès Festré & Nathalie Lazaric, 2007. "Routines and leadership in Schumpeter and von Mises' analysis of economic change," Post-Print halshs-00271338, HAL.
    6. Paul Peigné, 2013. "Routines during an organizational change: a study on dynamics and its effects," Post-Print hal-00876163, HAL.

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