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The Uneasy Organizational Matching Between Distribution of Knowledge, Divisionof Labor and Incentive Governance

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Author Info
Giovanni Dosi
Daniel Levinthal
Luigi Marengo

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Abstract

In this paper we present a general model of organizational problem-solving in which organizations engage into an activity of cognition (understanding the world in which they operate) and an activity of action (implementing those policies which cognition indicates as targets which better fit the world s characteristics). Both cognition and action are adaptively determined as the organization faces limitations in the cognitive capabilities of its members and in its control functions. Interde-pendencies among relevant dimensions of the environment and among basic operational tasks are only partly understood. The model allows us to study various combinations of decompositions of cognition and action and various stylized reward systems. In particular, we can address issues of centralization vs. decentralization of cognition, production and rewards schemes and the possible complementarities among these choices.

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Paper provided by Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy in its series LEM Papers Series with number 2002/26.

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Date of creation: 30 Dec 2002
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Handle: RePEc:ssa:lemwps:2002/26

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Scott E. Page, 1996. "Two measures of difficulty (*)," Economic Theory, Springer, vol. 8(2), pages 321-346.
  2. Lane, David A, 1993. "Artificial Worlds and Economics, Part I," Journal of Evolutionary Economics, Springer, vol. 3(2), pages 89-107, May.
  3. Marengo, Luigi, et al, 2000. "The Structure of Problem-Solving Knowledge and the Structure of Organizations," Industrial and Corporate Change, Oxford University Press, vol. 9(4), pages 757-88, December.
    Other versions:
  4. Page, Scott E, 1996. "Two Measures of Difficulty," Economic Theory, Springer, vol. 8(2), pages 321-46, August.
  5. Giovanni Dosi & Daniel A. Levinthal & Luigi Marengo, 2003. "Bridging contested terrain: linking incentive-based and learning perspectives on organizational evolution," Industrial and Corporate Change, Oxford University Press, vol. 12(2), pages 413-436, April.
    Other versions:
  6. Michael D. Cohen & Roger Burkhart & Giovanni Dosi & Massimo Egidi & Luigi Marengo & Massimo Warglien & Sidney Winter & with comments by Benjamin Coriat, 1995. "Routines and Other Recurring Action Patterns of Organizations: Contemporary Research Issues," Working Papers 95-11-101, Santa Fe Institute.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Leonardo Bargigli, 2005. "The limits of modularity in innovation and production," CESPRI Working Papers 176, CESPRI, Centre for Research on Innovation and Internationalisation, Universita' Bocconi, Milano, Italy, revised Sep 2005. [Downloadable!]
  2. Stefano Brusoni & Luigi Marengo & Andrea Prencipe & Marco Valente, 2004. "The Value and Costs of Modularity: A Cognitive Perspective," SPRU Electronic Working Paper Series 123, University of Sussex, SPRU - Science and Technology Policy Research. [Downloadable!]
  3. Leonardo Bargigli, 2005. "An evolutionary model for the dynamics of vertical integration and network-based production," Industrial Organization 0509002, EconWPA. [Downloadable!]
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