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Organizational performance in hierarchies and communities of practice

Author

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  • Murat Yildizoglu

    (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)

  • Olivier Dupouët

Abstract

In an earlier article we studied the Communities of Practice and their conditions of emergence using an Agent based model with a set of agents facing a continuous flow of problems. We now center our analysis on the performance of this organizational structure compared to a two-level hierarchical delegation structure. Our results show the crucial role played by the communication and the specialisation of agents; especially that community structures are efficient for competence building and learning in the long term. This paper backs the claim made by (Bowles, S., Gintis, H., 2002. Social capital and community governance. The Economic Journal 112, 419–437.) that hierarchy and communities are complementary modes of governance.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Murat Yildizoglu & Olivier Dupouët, 2003. "Organizational performance in hierarchies and communities of practice," Post-Print hal-00160363, HAL.
  • Handle: RePEc:hal:journl:hal-00160363
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    References listed on IDEAS

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    1. 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.
    2. Patrick Bolton & Mathias Dewatripont, 1994. "The Firm as a Communication Network," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(4), pages 809-839.
    3. Samuel Bowles & Herbert Gintis, 2002. "Social Capital and Community Governance," Economic Journal, Royal Economic Society, vol. 112(483), pages 419-436, November.
    4. Oliver Hart & John Moore, 2005. "On the Design of Hierarchies: Coordination versus Specialization," Journal of Political Economy, University of Chicago Press, vol. 113(4), pages 675-702, August.
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    7. Olivier Dupouët & Murât Yildizoglu & Patrick Cohendet, 2003. "Morphogenèse de communautés de pratique," Revue d'Économie Industrielle, Programme National Persée, vol. 103(1), pages 91-110.
    8. Kathleen M. Carley & Zhiang Lin, 1997. "A Theoretical Study of Organizational Performance Under Information Distortion," Management Science, INFORMS, vol. 43(7), pages 976-997, July.
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    10. Visser, Bauke, 2000. "Organizational communication structure and performance," Journal of Economic Behavior & Organization, Elsevier, vol. 42(2), pages 231-252, June.
    11. Luis Garicano, 2000. "Hierarchies and the Organization of Knowledge in Production," Journal of Political Economy, University of Chicago Press, vol. 108(5), pages 874-904, October.
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    Cited by:

    1. Carayol, Nicolas & Roux, Pascale & YIldIzoGlu, Murat, 2008. "Inefficiencies in a model of spatial networks formation with positive externalities," Journal of Economic Behavior & Organization, Elsevier, vol. 67(2), pages 495-511, August.
    2. Nathalie Lazaric & Alain Raybaut, 2014. "Do incentive systems spur work motivation of inventors in high tech firms? A group-based perspective," Journal of Evolutionary Economics, Springer, vol. 24(1), pages 135-157, January.
    3. , D. & Tessone, Claudio J. & ,, 2014. "Nestedness in networks: A theoretical model and some applications," Theoretical Economics, Econometric Society, vol. 9(3), September.
    4. Nathalie Lazaric & Alain Raybaut, 2014. "Do incentive systems spur work motivations of inventors in high-tech firms," Post-Print halshs-00930186, HAL.
    5. M. Koenig & Claudio J. Tessone & Yves Zenou, "undated". "A Dynamic Model of Network Formation with Strategic Interactions," Working Papers CCSS-09-006, ETH Zurich, Chair of Systems Design.
    6. Murat YILDIZOGLU, 2009. "Evolutionary approaches of economic dynamics (In French)," Cahiers du GREThA (2007-2019) 2009-16, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    7. Widad Guechtouli, 2006. "Learning in a community of practice : Complete vs. incomplete information," Working Papers halshs-00410764, HAL.

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    More about this item

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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