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Organisation as Interpretative Systems

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  • Brian J. Loasby

Abstract

[eng] In standard economies incentives matter but interpretation is ignored. But in Knightian uncertainty there are no assured procedures ; knowledge is a conjectural organisation imposed on phenomena, as Adam Smith showed, and specialisation encourages the differentiation of knowledge systems. The evolution of human cognition favoured context-specific pattem making by individuals, and the adoption of particular patterns within groups. This is the cognitive basis of formal organisations, each of which requires a cluster of compatible patterns ; but since ail patterns are both fallible and restrictive, variety between organisations is desirable. Innovation is a reorganisation of patterns, which may be difficult. [fre] En économie standard les incitations comptent mais l'interprétation est ignorée. Cependant en incertitude knightienne il n'y a pas de procédures certaines ; la connaissance est une organisation conjecturelle imposée aux phénomènes, comme l'a montré Adam Smith, et la spécialisation encourage la différenciation des systèmes de connaissance. L'évolution du processus de connaissance humaine a favorisé l'établissement de schémas spécifiques vis-à-vis du contexte par les individus, et l'adoption de schémas particuliers au sein des groupes. Ici réside le fondement cognitif des organisations formelles, chacune supposant un ensemble de schémas compatibles ; cependant tout schéma étant à la fois faillible et restrictif, la variété parmi les organisations est souhaitable. L'innovation constitue une réorganisation des schémas, qui peut se révéler difficile.

Suggested Citation

  • Brian J. Loasby, 2001. "Organisation as Interpretative Systems," Revue d'Économie Industrielle, Programme National Persée, vol. 97(1), pages 17-34.
    • Handle: RePEc:prs:recind:rei_0154-3229_2001_num_97_1_1797
    DOI: 10.3406/rei.2001.1797
    Note: DOI:10.3406/rei.2001.1797
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    Cited by:

    1. Marcel Bednarz & Tom Broekel, 2019. "The relationship of policy induced R&D networks and inter-regional knowledge diffusion," Journal of Evolutionary Economics, Springer, vol. 29(5), pages 1459-1481, November.
    2. Stroh, Tim & Mention, Anne-Laure & Duff, Cameron, 2023. "The impact of evolved psychological mechanisms on innovation and adoption: A systematic literature review," Technovation, Elsevier, vol. 125(C).
    3. Marengo, Luigi & Dosi, Giovanni, 2005. "Division of labor, organizational coordination and market mechanisms in collective problem-solving," Journal of Economic Behavior & Organization, Elsevier, vol. 58(2), pages 303-326, October.
    4. Gurrieri, Antonia Rosa, 2008. "Knowledge network dissemination in a family-firm sector," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(6), pages 2380-2389, December.
    5. Gérard Charreaux, 2002. "Variation sur le thème:"À la recherche de nouvelles fondations pour la finance et la gouvernance d'entreprise"," Revue Finance Contrôle Stratégie, revues.org, vol. 5(3), pages 5-68, September.
    6. Norma Rantisi, 2002. "The Local Innovation System as a Source of 'Variety': Openness and Adaptability in New York City's Garment District," Regional Studies, Taylor & Francis Journals, vol. 36(6), pages 587-602.
    7. Maria Rosaria Della Peruta & Manlio Giudice & Rosa Lombardi & Pedro Soto-Acosta, 2018. "Open Innovation, Product Development, and Inter-Company Relationships Within Regional Knowledge Clusters," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(2), pages 680-693, June.
    8. Mark Lorenzen & Lars Frederiksen, 2005. "On the Economics of Innovation Projects Product Experimentation in the Music Industry," DRUID Working Papers 05-23, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    9. Peter Maskell & Leïla Kebir, 2005. "What qualifies as a cluster theory?," DRUID Working Papers 05-09, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    10. Lamprinakis, Lampros & Fulton, Murray E., 2011. "Mental Frames and Organizational Decision-making: Facing the Challenges of Change," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114407, European Association of Agricultural Economists.
    11. Konstantinos Giannakas & Murray Fulton & Tala Awada, 2017. "Hiring leaders: Inference and disagreement about the best person for the job," Palgrave Communications, Palgrave Macmillan, vol. 3(1), pages 1-7, December.
    12. Gurrieri, Antonia Rosa, 2013. "Networking entrepreneurs," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 47(C), pages 193-204.

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