IDEAS home Printed from https://ideas.repec.org/a/bla/jemstr/v28y2019i4p734-764.html
   My bibliography  Save this article

Optimal team composition for tool‐based problem solving

Author

Listed:
  • Jonathan Bendor
  • Scott E. Page

Abstract

In this paper, we construct a framework for modeling teams of agents who apply techniques or procedures (tools) to solve problems. In our framework, tools differ in their likelihood of solving the problem at hand; agents, who may be of different types, vary in their skill at using tools. We establish baseline hiring rules when a manager can dictate tool choice and then derive results for strategic tool choice by team members. We highlight three main findings: First, that cognitively diverse teams are more likely to solve problems in both settings. Second, that teams consisting of types that master diverse tools have an indirect strategic advantage because tool diversity facilitates coordination. Third, that strategic tool choice creates counterintuitive optimal hiring practices. For example, optimal teams may exclude the highest ability types and can include dominated types. In addition, optimal groups need not increase setwise. Our framework extends to cover teamwork on decomposable problems, to cases where individuals apply multiple tools, and to teams facing a flow or set of problems.

Suggested Citation

  • Jonathan Bendor & Scott E. Page, 2019. "Optimal team composition for tool‐based problem solving," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 28(4), pages 734-764, November.
    • Handle: RePEc:bla:jemstr:v:28:y:2019:i:4:p:734-764
    DOI: 10.1111/jems.12295
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/jems.12295
    Download Restriction: no
    File URL: https://libkey.io/10.1111/jems.12295?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
    ---><---

    References listed on IDEAS

    as
    1. Demsetz, Harold, 1988. "The Theory of the Firm Revisited," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 4(1), pages 141-161, Spring.
    2. Bengt Holmstrom, 1982. "Moral Hazard in Teams," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 324-340, Autumn.
    3. Austen-Smith, David & Banks, Jeffrey S., 1996. "Information Aggregation, Rationality, and the Condorcet Jury Theorem," American Political Science Review, Cambridge University Press, vol. 90(1), pages 34-45, March.
    4. Richard B. Freeman & Wei Huang, 2014. "Collaborating With People Like Me: Ethnic co-authorship within the US," NBER Working Papers 19905, National Bureau of Economic Research, Inc.
    5. Richard B. Freeman & Wei Huang, 2015. "Collaborating with People Like Me: Ethnic Coauthorship within the United States," Journal of Labor Economics, University of Chicago Press, vol. 33(S1), pages 289-318.
    6. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2006. "The Polarization of the U.S. Labor Market," American Economic Review, American Economic Association, vol. 96(2), pages 189-194, May.
    7. Kathleen R. Conner & C. K. Prahalad, 1996. "A Resource-Based Theory of the Firm: Knowledge Versus Opportunism," Organization Science, INFORMS, vol. 7(5), pages 477-501, October.
    8. 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.
    9. Jasjit Singh & Lee Fleming, 2010. "Lone Inventors as Sources of Breakthroughs: Myth or Reality?," Management Science, INFORMS, vol. 56(1), pages 41-56, January.
    10. McAfee, R Preston & McMillan, John, 1991. "Optimal Contracts for Teams," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(3), pages 561-577, August.
    11. Jack A. Nickerson & Todd R. Zenger, 2004. "A Knowledge-Based Theory of the Firm—The Problem-Solving Perspective," Organization Science, INFORMS, vol. 15(6), pages 617-632, December.
    12. Christian Terwiesch & Yi Xu, 2008. "Innovation Contests, Open Innovation, and Multiagent Problem Solving," Management Science, INFORMS, vol. 54(9), pages 1529-1543, September.
    13. Schilling, Melissa A. & Green, Elad, 2011. "Recombinant search and breakthrough idea generation: An analysis of high impact papers in the social sciences," Research Policy, Elsevier, vol. 40(10), pages 1321-1331.
    14. Kevin J. Boudreau & Nicola Lacetera & Karim R. Lakhani, 2011. "Incentives and Problem Uncertainty in Innovation Contests: An Empirical Analysis," Management Science, INFORMS, vol. 57(5), pages 843-863, May.
    15. Lars Bo Jeppesen & Karim R. Lakhani, 2010. "Marginality and Problem-Solving Effectiveness in Broadcast Search," Organization Science, INFORMS, vol. 21(5), pages 1016-1033, October.
    16. Chihmao Hsieh & Jack A. Nickerson & Todd R. Zenger, 2007. "Opportunity Discovery, Problem Solving and a Theory of the Entrepreneurial Firm," Journal of Management Studies, Wiley Blackwell, vol. 44(7), pages 1255-1277, November.
    17. Edward Wolff, 2006. "The growth of information workers in the US economy, 1950-2000: the role of technological change, computerization, and structural change," Economic Systems Research, Taylor & Francis Journals, vol. 18(3), pages 221-255.
    18. Luis Garicano & Esteban Rossi-Hansberg, 2006. "Organization and Inequality in a Knowledge Economy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(4), pages 1383-1435.
    19. Xiaolin Shi & Lada A Adamic & Belle L Tseng & Gavin S Clarkson, 2009. "The Impact of Boundary Spanning Scholarly Publications and Patents," PLOS ONE, Public Library of Science, vol. 4(8), pages 1-7, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Omezzine, Fakher & Bodas Freitas, Isabel Maria, 2022. "New market creation through exaptation: The role of the founding team's prior professional experience," Research Policy, Elsevier, vol. 51(5).

    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. Natalicchio, A. & Messeni Petruzzelli, A. & Garavelli, A.C., 2017. "Innovation problems and search for solutions in crowdsourcing platforms – A simulation approach," Technovation, Elsevier, vol. 64, pages 28-42.
    2. Haeussler, Carolin & Vieth, Sabrina, 2022. "A question worth a million: The expert, the crowd, or myself? An investigation of problem solving," Research Policy, Elsevier, vol. 51(3).
    3. Pollok, Patrick & Lüttgens, Dirk & Piller, Frank T., 2019. "Attracting solutions in crowdsourcing contests: The role of knowledge distance, identity disclosure, and seeker status," Research Policy, Elsevier, vol. 48(1), pages 98-114.
    4. Paul Walker, 2010. "The (Non)Theory Of The Knowledge Firm," Scottish Journal of Political Economy, Scottish Economic Society, vol. 57(1), pages 1-32, February.
    5. Nicholas S. Argyres & Teppo Felin & Nicolai Foss & Todd Zenger, 2012. "Organizational Economics of Capability and Heterogeneity," Organization Science, INFORMS, vol. 23(5), pages 1213-1226, October.
    6. Tino T. Herden, 2020. "Explaining the competitive advantage generated from Analytics with the knowledge-based view: the example of Logistics and Supply Chain Management," Business Research, Springer;German Academic Association for Business Research, vol. 13(1), pages 163-214, April.
    7. Forman, Chris & van Zeebroeck, Nicolas, 2019. "Digital technology adoption and knowledge flows within firms: Can the Internet overcome geographic and technological distance?," Research Policy, Elsevier, vol. 48(8), pages 1-1.
    8. Mohammadi, Ali & Broström, Anders & Franzoni, Chiara, 2015. "Work Force Composition and Innovation: How Diversity in Employees’ Ethnical and Disciplinary Backgrounds Facilitates Knowledge Re-combination," Working Paper Series in Economics and Institutions of Innovation 413, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    9. T. Gries & R. Grundmann & I. Palnau & M. Redlin, 2017. "Innovations, growth and participation in advanced economies - a review of major concepts and findings," International Economics and Economic Policy, Springer, vol. 14(2), pages 293-351, April.
    10. Edward P. Lazear, 1995. "Personnel Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121883, December.
    11. David J. Deming, 2017. "The Growing Importance of Social Skills in the Labor Market," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(4), pages 1593-1640.
    12. Hossain, Mokter, 2018. "Motivations, challenges, and opportunities of successful solvers on an innovation intermediary platform," Technological Forecasting and Social Change, Elsevier, vol. 128(C), pages 67-73.
    13. Monte, Ferdinando, 2011. "Skill bias, trade, and wage dispersion," Journal of International Economics, Elsevier, vol. 83(2), pages 202-218, March.
    14. repec:wsi:acsxxx:v:21:y:2019:i:08:n:s1363919619500142 is not listed on IDEAS
    15. Llorente-Saguer, Aniol & Sheremeta, Roman M. & Szech, Nora, 2023. "Designing contests between heterogeneous contestants: An experimental study of tie-breaks and bid-caps in all-pay auctions," European Economic Review, Elsevier, vol. 154(C).
    16. Kyle J. Mayer & Deepak Somaya & Ian O. Williamson, 2012. "Firm-Specific, Industry-Specific, and Occupational Human Capital and the Sourcing of Knowledge Work," Organization Science, INFORMS, vol. 23(5), pages 1311-1329, October.
    17. Pol Antràs & Esteban Rossi-Hansberg, 2009. "Organizations and Trade," Annual Review of Economics, Annual Reviews, vol. 1(1), pages 43-64, May.
    18. Yan Huang & Param Vir Singh & Kannan Srinivasan, 2014. "Crowdsourcing New Product Ideas Under Consumer Learning," Management Science, INFORMS, vol. 60(9), pages 2138-2159, September.
    19. Michael Waldman, 2012. "Theory and Evidence in Internal LaborMarkets [The Handbook of Organizational Economics]," Introductory Chapters,, Princeton University Press.
    20. Kannan Srikanth & Phanish Puranam, 2014. "The Firm as a Coordination System: Evidence from Software Services Offshoring," Organization Science, INFORMS, vol. 25(4), pages 1253-1271, August.
    21. Filipe M. Santos & Kathleen M. Eisenhardt, 2005. "Organizational Boundaries and Theories of Organization," Organization Science, INFORMS, vol. 16(5), pages 491-508, October.

    More about this item

    Statistics

    Access and download statistics

    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:bla:jemstr:v:28:y:2019:i:4:p:734-764. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www.kellogg.northwestern.edu/research/journals/JEMS/ .

    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.