IDEAS home Printed from https://ideas.repec.org/a/spr/cejnor/v31y2023i4d10.1007_s10100-023-00843-7.html
   My bibliography  Save this article

Interactions between the individual and the group level in organizations: The case of learning and group turnover

Author

Listed:
  • Darío Blanco-Fernández

    (University of Klagenfurt)

  • Stephan Leitner

    (University of Klagenfurt)

  • Alexandra Rausch

    (University of Klagenfurt)

Abstract

Previous research on organizations often focuses on either the individual, team, or organizational level. There is a lack of multidimensional research on emergent phenomena and interactions between the mechanisms at different levels. This paper takes a multifaceted perspective on individual learning and autonomous group formation. To analyze interactions between the two levels, we introduce an agent-based model that captures an organization with a population of heterogeneous agents who learn and are limited in their rationality. To solve a task, agents form a group which experiences turnover from time to time, i.e., its composition changes periodically. We explore organizations that promote learning and changes in group composition either simultaneously or sequentially and analyze the interactions between the activities and the effects on performance. We observe underproportional interactions when tasks are interdependent and show that pushing learning and group turnover too far might backfire and decrease performance significantly.

Suggested Citation

  • Darío Blanco-Fernández & Stephan Leitner & Alexandra Rausch, 2023. "Interactions between the individual and the group level in organizations: The case of learning and group turnover," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 31(4), pages 1087-1128, December.
    • Handle: RePEc:spr:cejnor:v:31:y:2023:i:4:d:10.1007_s10100-023-00843-7
    DOI: 10.1007/s10100-023-00843-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10100-023-00843-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10100-023-00843-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Stephan Leitner, 2014. "A simulation analysis of interactions among intended biases in costing systems and their effects on the accuracy of decision-influencing information," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 22(1), pages 113-138, March.
    2. Dorthe Døjbak Håkonsson & Jacob Kjær Eskildsen & Linda Argote & Dan Mønster & Richard M. Burton & Børge Obel, 2016. "Exploration versus exploitation: Emotions and performance as antecedents and consequences of team decisions," Strategic Management Journal, Wiley Blackwell, vol. 37(6), pages 985-1001, June.
    3. Stephan Leitner & Friederike Wall, 2021. "Decision-facilitating information in hidden-action setups: an agent-based approach," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 16(2), pages 323-358, April.
    4. Dirk Basten & Thilo Haamann, 2018. "Approaches for Organizational Learning: A Literature Review," SAGE Open, , vol. 8(3), pages 21582440187, August.
    5. Colin Camerer & Linda Babcock & George Loewenstein & Richard Thaler, 1997. "Labor Supply of New York City Cabdrivers: One Day at a Time," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(2), pages 407-441.
    6. Jan W. Rivkin & Nicolaj Siggelkow, 2003. "Balancing Search and Stability: Interdependencies Among Elements of Organizational Design," Management Science, INFORMS, vol. 49(3), pages 290-311, March.
    7. Benjamin Enke & Florian Zimmermann, 2019. "Correlation Neglect in Belief Formation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(1), pages 313-332.
    8. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    9. Peter Abell & Teppo Felin & Nicolai Foss, 2008. "Building micro-foundations for the routines, capabilities, and performance links," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(6), pages 489-502.
    10. Alan Barrett & Philip J. O'Connell, 2001. "Does Training Generally Work? The Returns to in-Company Training," ILR Review, Cornell University, ILR School, vol. 54(3), pages 647-662, April.
    11. Frey, Bruno S & Oberholzer-Gee, Felix, 1997. "The Cost of Price Incentives: An Empirical Analysis of Motivation Crowding-Out," American Economic Review, American Economic Association, vol. 87(4), pages 746-755, September.
    12. Christina Fang & Jeho Lee & Melissa A. Schilling, 2010. "Balancing Exploration and Exploitation Through Structural Design: The Isolation of Subgroups and Organizational Learning," Organization Science, INFORMS, vol. 21(3), pages 625-642, June.
    13. Leitner, Stephan & Rausch, Alexandra & Behrens, Doris A., 2017. "Distributed investment decisions and forecasting errors: An analysis based on a multi-agent simulation model," European Journal of Operational Research, Elsevier, vol. 258(1), pages 279-294.
    14. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    15. Jan W. Rivkin & Nicolaj Siggelkow, 2007. "Patterned Interactions in Complex Systems: Implications for Exploration," Management Science, INFORMS, vol. 53(7), pages 1068-1085, July.
    16. Amy C. Edmondson, 2003. "Speaking Up in the Operating Room: How Team Leaders Promote Learning in Interdisciplinary Action Teams," Journal of Management Studies, Wiley Blackwell, vol. 40(6), pages 1419-1452, September.
    17. Herbert A. Simon, 1991. "Bounded Rationality and Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 125-134, February.
    18. Oded Berger-Tal & Jonathan Nathan & Ehud Meron & David Saltz, 2014. "The Exploration-Exploitation Dilemma: A Multidisciplinary Framework," PLOS ONE, Public Library of Science, vol. 9(4), pages 1-8, April.
    19. William Vickrey, 1961. "Counterspeculation, Auctions, And Competitive Sealed Tenders," Journal of Finance, American Finance Association, vol. 16(1), pages 8-37, March.
    20. Marianne Bertrand & Antoinette Schoar, 2003. "Managing with Style: The Effect of Managers on Firm Policies," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(4), pages 1169-1208.
    21. Michael D. Cohen, 1991. "Individual Learning and Organizational Routine: Emerging Connections," Organization Science, INFORMS, vol. 2(1), pages 135-139, February.
    22. Alex Gershkov & Jianpei Li & Paul Schweinzer, 2009. "Efficient tournaments within teams," RAND Journal of Economics, RAND Corporation, vol. 40(1), pages 103-119, March.
    23. Vriend, Nicolaas J., 2000. "An illustration of the essential difference between individual and social learning, and its consequences for computational analyses," Journal of Economic Dynamics and Control, Elsevier, vol. 24(1), pages 1-19, January.
    24. Daniel Barkoczi & Mirta Galesic, 2016. "Social learning strategies modify the effect of network structure on group performance," Nature Communications, Nature, vol. 7(1), pages 1-8, December.
    25. Daniel A. Levinthal, 1997. "Adaptation on Rugged Landscapes," Management Science, INFORMS, vol. 43(7), pages 934-950, July.
    26. Marco LiCalzi & Oktay Surucu, 2012. "The Power of Diversity over Large Solution Spaces," Management Science, INFORMS, vol. 58(7), pages 1408-1421, July.
    27. George A. Akerlof, 1982. "Labor Contracts as Partial Gift Exchange," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 97(4), pages 543-569.
    28. Stephan Billinger & Nils Stieglitz & Terry R. Schumacher, 2014. "Search on Rugged Landscapes: An Experimental Study," Organization Science, INFORMS, vol. 25(1), pages 93-108, February.
    29. Tannenbaum, Scott I. & Mathieu, John E. & Salas, Eduardo & Cohen, Debra, 2012. "Teams Are Changing: Are Research and Practice Evolving Fast Enough?," Industrial and Organizational Psychology, Cambridge University Press, vol. 5(1), pages 2-24, March.
    30. Harry J. Holzer & Richard N. Block & Marcus Cheatham & Jack H. Knott, 1993. "Are Training Subsidies for Firms Effective? The Michigan Experience," ILR Review, Cornell University, ILR School, vol. 46(4), pages 625-636, July.
    31. Joel M. Podolny, 2018. "An Exploration of Discerning Search," Strategy Science, INFORMS, vol. 3(1), pages 295-305, March.
    32. Deborah Gladstein Ancona & David F. Caldwell, 1992. "Demography and Design: Predictors of New Product Team Performance," Organization Science, INFORMS, vol. 3(3), pages 321-341, August.
    33. Iris Lorscheid & Bernd-Oliver Heine & Matthias Meyer, 2012. "Opening the ‘black box’ of simulations: increased transparency and effective communication through the systematic design of experiments," Computational and Mathematical Organization Theory, Springer, vol. 18(1), pages 22-62, March.
    34. Maurizio Zollo & Sidney G. Winter, 2002. "Deliberate Learning and the Evolution of Dynamic Capabilities," Organization Science, INFORMS, vol. 13(3), pages 339-351, June.
    35. Mark Easterby‐Smith & Mary Crossan & Davide Nicolini, 2000. "Organizational Learning: Debates Past, Present And Future," Journal of Management Studies, Wiley Blackwell, vol. 37(6), pages 783-796, September.
    36. Sidney G. Winter, 2003. "Understanding dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 991-995, October.
    37. John Duffy & Daniela Puzzello, 2014. "Gift Exchange versus Monetary Exchange: Theory and Evidence," American Economic Review, American Economic Association, vol. 104(6), pages 1735-1776, June.
    38. Creplet, F. & Dupouet, O. & Kern, F. & Mehmanpazir, B. & Munier, F., 2001. "Consultants and experts in management consulting firms," Research Policy, Elsevier, vol. 30(9), pages 1517-1535, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dario Blanco-Fernandez & Stephan Leitner & Alexandra Rausch, 2022. "Interactions between the individual and the group level in organizations: The case of learning and autonomous group adaptation," Papers 2203.09162, arXiv.org.
    2. Dar'io Blanco-Fern'andez & Stephan Leitner & Alexandra Rausch, 2021. "Multi-level Adaptation of Distributed Decision-Making Agents in Complex Task Environments," Papers 2103.02345, arXiv.org.
    3. Dar'io Blanco-Fern'andez & Stephan Leitner & Alexandra Rausch, 2022. "Dynamic groups in complex task environments: To change or not to change a winning team?," Papers 2203.09157, arXiv.org.
    4. Leitner, Stephan & Wall, Friederike, 2022. "Micro-level dynamics in hidden action situations with limited information," Journal of Economic Behavior & Organization, Elsevier, vol. 204(C), pages 372-393.
    5. Hazhir Rahmandad & Nelson Repenning, 2016. "Capability erosion dynamics," Strategic Management Journal, Wiley Blackwell, vol. 37(4), pages 649-672, April.
    6. Giovanni Gavetti, 2012. "PERSPECTIVE—Toward a Behavioral Theory of Strategy," Organization Science, INFORMS, vol. 23(1), pages 267-285, February.
    7. Arie Y. Lewin & Silvia Massini & Carine Peeters, 2011. "Microfoundations of Internal and External Absorptive Capacity Routines," Organization Science, INFORMS, vol. 22(1), pages 81-98, February.
    8. Sheen S. Levine & Mark Bernard & Rosemarie Nagel, 2018. "Strategic intelligence: The cognitive capability to anticipate competitor behaviour," Strategic Management Journal, Wiley Blackwell, vol. 39(2), pages 527-527, February.
    9. Quan Anh Nguyen & Gillian Sullivan Mort, 0. "Conceptualising organisational-level and microfoundational capabilities: an integrated view of born-globals’ internationalisation," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-23.
    10. Giovanni. Gavetti & Daniel A. Levinthal, 2004. "50th Anniversay Article: The Strategy Field from the Perspective of Management Science: Divergent Strands and Possible Integration," Management Science, INFORMS, vol. 50(10), pages 1309-1318, October.
    11. Xiao, Fenglong & Shen, Yinjie, 2024. "Wolves at the door to the unknown: Innovation search and hedge fund activism," Research Policy, Elsevier, vol. 53(2).
    12. Vivek Tandon & Puay Khoon Toh, 2022. "Who deviates? Technological opportunities, career concern, and inventor's distant search," Strategic Management Journal, Wiley Blackwell, vol. 43(4), pages 724-757, April.
    13. Daniel A. Levinthal & Alessandro Marino, 2015. "Three Facets of Organizational Adaptation: Selection, Variety, and Plasticity," Organization Science, INFORMS, vol. 26(3), pages 743-755, June.
    14. Juha Uotila, 2018. "Punctuated equilibrium or ambidexterity: dynamics of incremental and radical organizational change over time," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(1), pages 131-148.
    15. Quan Anh Nguyen & Gillian Sullivan Mort, 2021. "Conceptualising organisational-level and microfoundational capabilities: an integrated view of born-globals’ internationalisation," International Entrepreneurship and Management Journal, Springer, vol. 17(4), pages 1781-1803, December.
    16. Friederike Wall, 2016. "Agent-based modeling in managerial science: an illustrative survey and study," Review of Managerial Science, Springer, vol. 10(1), pages 135-193, January.
    17. Huang, Tsu-Te (Andrew) & Chen, Le & Stewart, Rodney A. & Panuwatwanich, Kriengsak, 2013. "Leveraging power of learning capability upon manufacturing operations," International Journal of Production Economics, Elsevier, vol. 145(1), pages 233-252.
    18. Xinwei Ye & Lei Ma & Junwen Feng & Yang Cheng & Zheng Liu, 2018. "Impact of Technology Habitual Domain on Ambidextrous Innovation: Case Study of a Chinese High-Tech Enterprise," Sustainability, MDPI, vol. 10(12), pages 1-21, December.
    19. Friederike Wall, 2023. "Modeling managerial search behavior based on Simon’s concept of satisficing," Computational and Mathematical Organization Theory, Springer, vol. 29(2), pages 265-299, June.
    20. Stephan Leitner & Friederike Wall, 2015. "Simulation-based research in management accounting and control: an illustrative overview," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 26(2), pages 105-129, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:cejnor:v:31:y:2023:i:4:d:10.1007_s10100-023-00843-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.