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Routines and incentives: the role of communities in the firm

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  • Patrick Cohendet
  • Patrick Llerena
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    Abstract

    The purpose of this paper is to contribute to clarifying the concept of routines, by focusing on a specific aspect of this concept: namely the question of localization of routines within the organization. We consider that one of the main weaknesses of the theory in the analytical treatment of routines comes from the fact that the local context does not really matter. Our position is that, on the contrary, the local context in which routines emerge and learning takes place does matter, and leads to routines that strongly differ in terms of power of replication, of degree of inertia, of search potential. We base our analysis of the localization of routines on the concept of community. We consider that, as a result of the permanent interaction between the individual and organizational levels, routines are shaped and determined at an intermediate level, the level of communities. Along these lines, we show that the analysis of the localization of routines in the organization has important consequences for our understanding of the specific dimensions of routines (cognitive, co-ordination and motivational), in particular on the incentives and the structure of the firm. Copyright 2003, Oxford University Press.

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    Bibliographic Info

    Article provided by Oxford University Press in its journal Industrial and Corporate Change.

    Volume (Year): 12 (2003)
    Issue (Month): 2 (April)
    Pages: 271-297

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    Handle: RePEc:oup:indcch:v:12:y:2003:i:2:p:271-297

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    Cited by:
    1. Biggiero, Lucio, 2007. "Organizations as congitive systems :what do they process and deliver?," MPRA Paper 3089, University Library of Munich, Germany.
    2. Hussler, Caroline & Ronde, Patrick, 2007. "The impact of cognitive communities on the diffusion of academic knowledge: Evidence from the networks of inventors of a French university," Research Policy, Elsevier, vol. 36(2), pages 288-302, March.
    3. Paul Muller, 2006. "Reputation, trust and the dynamics of leadership in communities of practice," Journal of Management and Governance, Springer, vol. 10(4), pages 381-400, November.
    4. repec:hal:cesptp:halshs-00110810 is not listed on IDEAS
    5. Manlio Giudice & Maria Della Peruta & Vincenzo Maggioni, 2013. "Collective Knowledge and Organizational Routines within Academic Communities of Practice: an Empirical Research on Science–Entrepreneurs," Journal of the Knowledge Economy, Springer, vol. 4(3), pages 260-278, September.
    6. Thierry Burger-Helmchen, 2007. "Justifying the Origin of Real Options and their Difficult Evaluation in Strategic Management," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 59(4), pages 387-405, October.
    7. Thierry BURGER-HELMCHEN, 2004. "How do real options come into existence? A step toward an option- based theory of the firm," Finance 0409054, EconWPA.
    8. D'Adderio, Luciana, 2008. "The performativity of routines: Theorising the influence of artefacts and distributed agencies on routines dynamics," Research Policy, Elsevier, vol. 37(5), pages 769-789, June.

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