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Collective performance: modeling the interaction of habit-based actions

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  • Michael D. Cohen
  • Daniel A. Levinthal
  • Massimo Warglien

Abstract

Recurring patterns of action are essential in our efforts to explain central properties of business firms and other organizations. However, the development of systematic theory has been hampered by the difficulty of adequately specifying foundational assumptions. We address this problem by defining a concept of collective performance, which brings together a range of recurring organizational action patterns that have been studied under labels such as "routine," "practice," standard operating procedure, or "genre of action." All these forms of organizational action are based on human habit to a significant degree. We propose a conceptual framework for such habit-based organizational action patterns. The framework is a set of core principles and desirable model properties that can serve as a guide in the development of formal models of collective performance. It provides micro-foundations for the modeling of collective performance that are aligned with contemporary developments in psychology. Finally, we present a series of examples, developed in Supplementary Materials, that shows how our framework leads to new classes of formal models that can aid the analysis of collective performance.

Suggested Citation

  • Michael D. Cohen & Daniel A. Levinthal & Massimo Warglien, 2014. "Collective performance: modeling the interaction of habit-based actions," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 23(2), pages 329-360.
  • Handle: RePEc:oup:indcch:v:23:y:2014:i:2:p:329-360.
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    File URL: http://hdl.handle.net/10.1093/icc/dtu005
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    Citations

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    Cited by:

    1. Anna Pereverzieva, 2019. "A Methodical Approach to the Assessment of Human Resources` Interactions," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 15(1), pages 171-204.
    2. Dehua Gao & Aliakbar Akbaritabar, 2022. "Using agent-based modeling in routine dynamics research: a quantitative and content analysis of literature," Review of Managerial Science, Springer, vol. 16(2), pages 521-550, February.
    3. Vikas A. Aggarwal & Hart E. Posen & Maciej Workiewicz, 2017. "Adaptive capacity to technological change: A microfoundational approach," Strategic Management Journal, Wiley Blackwell, vol. 38(6), pages 1212-1231, June.
    4. Rouslan Koumakhov & Adel Daoud, 2017. "Routine and reflexivity: Simonian cognitivism vs practice approach," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(4), pages 727-743.
    5. Sidney G. Winter, 2017. "Pursuing the evolutionary agenda in economics and management research," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 41(3), pages 721-747.
    6. Teppo Felin & Stuart Kauffman, 2023. "Disruptive evolution: harnessing functional excess, experimentation, and science as tool," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 32(6), pages 1372-1392.
    7. Giovanni Gavetti & Massimo Warglien, 2015. "A Model of Collective Interpretation," Organization Science, INFORMS, vol. 26(5), pages 1263-1283, October.
    8. Markus C. Becker & Thorbjørn Knudsen, 2017. "Heterogeneity of habits as a foundation for Schumpeterian economic policy," Journal of Evolutionary Economics, Springer, vol. 27(1), pages 43-62, January.

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