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Balancing cooperation and competition in human groups: the role of emotional algorithms and evolution

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  • Christoph H. Loch

    (INSEAD, Boulevard de Constance, 77305 Fontainebleau, France)

  • D. Charles Galunic

    (INSEAD, Boulevard de Constance, 77305 Fontainebleau, France)

  • Susan Schneider

    (HEC Genève, 1211 Geneva, Switzerland)

Abstract

We examine emotional algorithms and their role in a fundamental dilemma that confronts human groups-whether actors should take care of 'me' (compete) or take care of 'we' (cooperate). We argue that human emotions, triggered in algorithmic fashion through four common, although culturally specified, mechanisms, powerfully direct humans to compete or cooperate. Drawing on evolutionary psychology, we first define and characterize these hard-wired emotional algorithms, presenting evidence for their independent influence. Their regulatory influence on human groups, however, can only be appreciated once we examine them as a system. We show how, as a system, these algorithms help explain the dynamic balance that members of human groups can (and often must) achieve between competition and cooperation. We derive three propositions regarding how these algorithms play out in groups. We suggest that understanding these dynamics can help leaders better manage cooperation and competition in organizational groups. Copyright © 2006 John Wiley & Sons, Ltd.

Suggested Citation

  • Christoph H. Loch & D. Charles Galunic & Susan Schneider, 2006. "Balancing cooperation and competition in human groups: the role of emotional algorithms and evolution," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 27(2-3), pages 217-233.
    • Handle: RePEc:wly:mgtdec:v:27:y:2006:i:2-3:p:217-233
    DOI: 10.1002/mde.1294
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    Cited by:

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    2. Verbeke, Willem & Bagozzi, Richard P. & Belschak, Frank D., 2016. "The role of status and leadership style in sales contests: A natural field experiment," Journal of Business Research, Elsevier, vol. 69(10), pages 4112-4120.
    3. Christoph H. Loch & Kishore Sengupta & M. Ghufran Ahmad, 2013. "The Microevolution of Routines: How Problem Solving and Social Preferences Interact," Organization Science, INFORMS, vol. 24(1), pages 99-115, February.
    4. Shuyun Du & Yinan Ma & Jeoung Yul Lee, 2022. "Workplace Loneliness and the Need to Belong in the Era of COVID-19," Sustainability, MDPI, vol. 14(8), pages 1-22, April.
    5. Yaozhong Wu & Christoph H. Loch & Ludo Van der Heyden, 2008. "A Model of Fair Process and Its Limits," Manufacturing & Service Operations Management, INFORMS, vol. 10(4), pages 637-653, June.
    6. Enno Siemsen, 2008. "The Hidden Perils of Career Concerns in R& D Organizations," Management Science, INFORMS, vol. 54(5), pages 863-877, May.
    7. Hua, Shengya & Liu, Jingchen & Cheng, T.C.E. & Zhai, Xin, 2019. "Financing and ordering strategies for a supply chain under the option contract," International Journal of Production Economics, Elsevier, vol. 208(C), pages 100-121.
    8. Ricarda B. Bouncken & Sven M. Laudien & Viktor Fredrich & Lars Görmar, 2018. "Coopetition in coworking-spaces: value creation and appropriation tensions in an entrepreneurial space," Review of Managerial Science, Springer, vol. 12(2), pages 385-410, March.
    9. Jeffrey A. Martin, 2011. "Dynamic Managerial Capabilities and the Multibusiness Team: The Role of Episodic Teams in Executive Leadership Groups," Organization Science, INFORMS, vol. 22(1), pages 118-140, February.
    10. Haijian Si & Stylianos Kavadias & Christoph Loch, 2022. "Managing innovation portfolios: From project selection to portfolio design," Production and Operations Management, Production and Operations Management Society, vol. 31(12), pages 4572-4588, December.
    11. Sriram Narayanan & Sridhar Balasubramanian & Jayashankar M. Swaminathan, 2009. "A Matter of Balance: Specialization, Task Variety, and Individual Learning in a Software Maintenance Environment," Management Science, INFORMS, vol. 55(11), pages 1861-1876, November.
    12. Christoph H. Loch & Yaozhong Wu, 2008. "Social Preferences and Supply Chain Performance: An Experimental Study," Management Science, INFORMS, vol. 54(11), pages 1835-1849, November.

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