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Organizational performance in hierarchies and communities of practice

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  • Dupouet, Olivier
  • Yildizoglu, Murat

Abstract

In a preceding article we have studied the Communities of Practice and their conditions of emergence using an Agent based model of a set of agents facing a continuous flow of problems. We center now our analysis on the performance of this organizational structure in comparison with a two-level hierarchical delegation structure. Our results show the crucial role played by the communication and the specialisation of the agents. Our main result shows that community structures are efficient for competence building, and particularly, if one considers learning in the long term. This paper backs the claim made by Bowles and Gintis [2000] that hierarchy and communities are complementary rather than substitute modes of governance.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 61 (2006)
Issue (Month): 4 (December)
Pages: 668-690

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Handle: RePEc:eee:jeborg:v:61:y:2006:i:4:p:668-690

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References

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  1. Oliver Hart & John Moore, 2005. "On the Design of Hierarchies: Coordination versus Specialization," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 113(4), pages 675-702, August.
  2. Jan W. Rivkin & Nicolaj Siggelkow, 2003. "Balancing Search and Stability: Interdependencies Among Elements of Organizational Design," Management Science, INFORMS, INFORMS, vol. 49(3), pages 290-311, March.
  3. Samuel Bowles & Herbert Gintis, 2002. "Social Capital and Community Governance," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 112(483), pages 419-436, November.
  4. Kathleen M. Carley & Zhiang Lin, 1997. "A Theoretical Study of Organizational Performance Under Information Distortion," Management Science, INFORMS, INFORMS, vol. 43(7), pages 976-997, July.
  5. Bolton, Patrick & Dewatripont, Mathias, 1994. "The Firm as a Communication Network," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 109(4), pages 809-39, November.
  6. Visser, Bauke, 2000. "Organizational communication structure and performance," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 42(2), pages 231-252, June.
  7. Delmastro, Marco, 2002. "The determinants of the management hierarchy: evidence from Italian plants," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 20(1), pages 119-137, January.
  8. Patrick Cohendet & Murât Yildizoglu & Olivier Dupouët, 2003. "Morphogenèse de communautés de pratique," Revue d'Économie Industrielle, Programme National Persée, vol. 103(1), pages 91-110.
  9. Luis Garicano, 2000. "Hierarchies and the Organization of Knowledge in Production," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 108(5), pages 874-904, October.
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Cited by:
  1. Nathalie Lazaric & Alain Raybaut, 2014. "Do incentive systems spur work motivations of inventors in high-tech firms," Post-Print halshs-00930186, HAL.
  2. Widad Guechtouli, 2006. "Learning in a community of practice : Complete vs. incomplete information," Working Papers halshs-00410764, HAL.
  3. König, Michael & Tessone, Claudio J. & Zenou, Yves, 2012. "Nestedness in Networks: A Theoretical Model and Some Applications," CEPR Discussion Papers, C.E.P.R. Discussion Papers 8807, C.E.P.R. Discussion Papers.
  4. König, Michael & Tessone, Claudio J. & Zenou, Yves, 2009. "A Dynamic Model of Network Formation with Strategic Interactions," CEPR Discussion Papers, C.E.P.R. Discussion Papers 7521, C.E.P.R. Discussion Papers.
  5. 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, Springer, vol. 24(1), pages 135-157, January.
  6. Murat YILDIZOGLU (Université Aix-Marseille3), 2009. "Evolutionary approaches of economic dynamics (In French)," Cahiers du GREThA, Groupe de Recherche en Economie Théorique et Appliquée 2009-16, Groupe de Recherche en Economie Théorique et Appliquée.
  7. Carayol, Nicolas & Roux, Pascale & YIldIzoGlu, Murat, 2008. "Inefficiencies in a model of spatial networks formation with positive externalities," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 67(2), pages 495-511, August.

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