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Christensen M, Dahl CM, Knudsen T, Warglien M. Context and Aggregation: An Experimental Study of Bias and Discrimination in Organizational Decisions. ORGANIZATION SCIENCE 2021. [DOI: 10.1287/orsc.2021.1502] [Citation(s) in RCA: 1] [Impact Index Per Article: 0.3] [Reference Citation Analysis] [Abstract] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 11/20/2022]
Abstract
This paper addresses a notable gap at the intersection of organizational economics and organization science: how does organizational context influence aggregation of individual behavior in organizational decisions? Using basic centralized versus decentralized organizational structures as building blocks for our experimental design, we examine whether assignment of organizational positions, incentive schemes, and structural configuration induce endogenous adaptation in the form of change in reservation levels (bias) or modified discrimination capability in subjects’ behavior. We found that evaluators adapted their reservation and discrimination levels in centralized structures, whereas they did not generally adapt their reservation and discrimination levels when placed in decentralized structures. We identify mechanisms that explain these findings; explain how they influence aggregate, organizational behavior; and discuss implications for research and practice.
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Affiliation(s)
- Michael Christensen
- Strategic Organization Design Unit, University of Southern Denmark, DK-5230 Odense M, Denmark
| | - Christian M. Dahl
- Department of Economics, University of Southern Denmark, DK-5230 Odense M, Denmark
| | - Thorbjørn Knudsen
- Strategic Organization Design Unit, University of Southern Denmark, DK-5230 Odense M, Denmark
- Frankfurt School of Finance and Management
- Danish Institute for Advanced Study, University of Southern Denmark, DK-5230 Odense M, Denmark
| | - Massimo Warglien
- Center for Experimental Research in Management and Economics, Department of Management, Ca' Foscari University of Venice, 30123 Venice, Italy
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Rahmandad H, Gary MS. Delays Impair Learning and Can Drive Convergence to Inefficient Strategies. ORGANIZATION SCIENCE 2020. [DOI: 10.1287/orsc.2020.1405] [Citation(s) in RCA: 2] [Impact Index Per Article: 0.5] [Reference Citation Analysis] [Abstract] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 11/20/2022]
Abstract
With so many possible choices, why do managers adopt the strategies they do? We identify delays between adopting a strategy and observing the full implications of that choice as a critical factor influencing strategic choices. Using a simulation of a service firm, we conduct two behavioral experiments to investigate how delays interact with outcome uncertainty to shape learning, strategy adaptation, and performance outcomes. Two mechanisms emerge from how different subject groups perceive, react to, and learn in the presence of delayed feedback and uncertainty. First, when multiple viable strategies exist, longer delays lead both general participants and experienced managers toward alternatives that have rapid returns. When those alternatives are suboptimal, delays may strengthen convergence to inefficient strategies. Second, delays and uncertainty may also induce learners to persist with their a priori strategies. Managers show larger confidence in their priors and thus underperform general participants when the underlying task structure diverges from those priors. Both mechanisms can undermine performance. Moreover, delays and uncertainty may reduce heterogeneity in strategies and performance in more dynamic, uncertain environments, leading to convergence as tasks grow more complex and where decision makers possess similar priors.
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Affiliation(s)
- Hazhir Rahmandad
- Sloan School of Management, Massachusetts Institute of Technology, Cambridge, Massachusetts 02442
| | - Michael Shayne Gary
- UNSW Business School, University of New South Wales, Sydney, New South Wales 2052, Australia
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Affiliation(s)
- Scott F. Rockart
- Fuqua School of Business, Duke University, Durham, North Carolina 27708
| | - Kristin Wilson
- Kenan-Flagler Business School, University of North Carolina at Chapel Hill, Chapel Hill, North Carolina 27599
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Gary MS, Yang MM, Yetton PW, Sterman JD. Stretch Goals and the Distribution of Organizational Performance. ORGANIZATION SCIENCE 2017. [DOI: 10.1287/orsc.2017.1131] [Citation(s) in RCA: 44] [Impact Index Per Article: 6.3] [Reference Citation Analysis] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 11/20/2022]
Affiliation(s)
- Michael Shayne Gary
- UNSW Business School, University of New South Wales, Sydney NSW 2052, Australia
| | - Miles M. Yang
- Curtin Business School, Curtin University, Bentley, Western Australia 6102, Australia
| | - Philip W. Yetton
- Faculty of Business and Law, Deakin University, Geelong Victoria 3220, Australia
| | - John D. Sterman
- Sloan School of Management, Massachusetts Institute of Technology, Cambridge, Massachusetts 02142
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Evolution and Coevolution: Dynamic Knowledge Capability Building for Catching-up in Emerging Economies. MANAGEMENT AND ORGANIZATION REVIEW 2016. [DOI: 10.1017/mor.2016.20] [Citation(s) in RCA: 15] [Impact Index Per Article: 1.9] [Reference Citation Analysis] [Abstract] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 11/05/2022]
Abstract
ABSTRACTKnowledge has always been a strategic resource for firms; however, there is a lack of research regarding how a firm's knowledge management (KM) contributes to its capability catching-up and adaptation in emerging economies. This article focuses on the knowledge capability building of Chinese private firms that were set up in the 1990s and pays particular attention to how firms with limited resources and knowledge went on to achieve remarkable success. This paper presents its analysis through a multi-level co-evolutionary lens and a case study on the Li-Ning Company. The case study depicts the macro coevolution between the changing business environment and the firm's strategic choices, as well as the micro coevolution of the organizational strategy and the KM orientations, processes, and infrastructures within the firm. The research sheds light on the dynamic capability building trajectory for the firms in emerging economies.
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Argote L, Guo JM. Routines and transactive memory systems: Creating, coordinating, retaining, and transferring knowledge in organizations. RESEARCH IN ORGANIZATIONAL BEHAVIOR 2016. [DOI: 10.1016/j.riob.2016.10.002] [Citation(s) in RCA: 33] [Impact Index Per Article: 4.1] [Reference Citation Analysis] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 11/24/2022]
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Abstract
Agent-based simulation models can reproduce the interactions between members of an organization or between different organizations in an artificial environment where “agents” make decisions and communicate with one another. This article discusses possible applications to core issues in organization science and provides an introductory guide to simulation platforms. Agent-based modeling requires writing computer code, a skill that, if properly mastered, may turn into a career opportunity.
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