IDEAS home Printed from https://ideas.repec.org/a/inm/ororsc/v30y2019i3p467-488.html
   My bibliography  Save this article

Learning-by-Moving: Can Reconfiguring Spatial Proximity Between Organizational Members Promote Individual-level Exploration?

Author

Listed:
  • Sunkee Lee

    (Tepper School of Business, Carnegie Mellon University, Pittsburgh, Pennsylvania 15213)

Abstract

This research proposes that individual-level exploration can be promoted by reconfiguring the spatial proximity between organizational members’ workspaces. To test this idea, I exploit a natural experiment in an e-commerce company where the spatial distances between organizational members’ workspaces were reconfigured. Consistent with the theory I develop on learning, results suggest that individuals whose workspaces were moved closer to those of previously separated peers engaged in more individual-level exploration. This pattern was stronger for individuals who had higher prior organizational experience and those who did not have ties with previously separated peers. Finally, I found that the relocated individuals also achieved higher financial performance. Overall, this study highlights the importance of an underexamined organization design element—spatial design—and its implications for organizational learning, individual-level exploration, and firm performance.

Suggested Citation

  • Sunkee Lee, 2019. "Learning-by-Moving: Can Reconfiguring Spatial Proximity Between Organizational Members Promote Individual-level Exploration?," Organization Science, INFORMS, vol. 30(3), pages 467-488, May.
  • Handle: RePEc:inm:ororsc:v:30:y:2019:i:3:p:467-488
    DOI: 10.1287/orsc.2019.1291
    as

    Download full text from publisher

    File URL: https://doi.org/10.1287/orsc.2019.1291
    Download Restriction: no

    File URL: https://libkey.io/10.1287/orsc.2019.1291?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. Sunkee Lee & Phanish Puranam, 2017. "Incentive Redesign and Collaboration in Organizations: Evidence from a Natural Experiment," Strategic Management Journal, Wiley Blackwell, vol. 38(12), pages 2333-2352, December.
    2. Mary Tripsas & Giovanni Gavetti, 2000. "Capabilities, cognition, and inertia: evidence from digital imaging," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1147-1161, October.
    3. Jan W. Rivkin & Nicolaj Siggelkow, 2003. "Balancing Search and Stability: Interdependencies Among Elements of Organizational Design," Management Science, INFORMS, vol. 49(3), pages 290-311, March.
    4. Teppo Felin & Nicolai J. Foss & Koen H. Heimeriks & Tammy L. Madsen, 2012. "Microfoundations of Routines and Capabilities: Individuals, Processes, and Structure," Journal of Management Studies, Wiley Blackwell, vol. 49(8), pages 1351-1374, December.
    5. Crescenzi, Riccardo & Nathan, Max & Rodríguez-Pose, Andrés, 2016. "Do inventors talk to strangers? On proximity and collaborative knowledge creation," Research Policy, Elsevier, vol. 45(1), pages 177-194.
    6. Kane, Aimee A. & Argote, Linda & Levine, John M., 2005. "Knowledge transfer between groups via personnel rotation: Effects of social identity and knowledge quality," Organizational Behavior and Human Decision Processes, Elsevier, vol. 96(1), pages 56-71, January.
    7. Tom J. M. Mom & Frans A. J. Van Den Bosch & Henk W. Volberda, 2007. "Investigating Managers' Exploration and Exploitation Activities: The Influence of Top‐Down, Bottom‐Up, and Horizontal Knowledge Inflows," Journal of Management Studies, Wiley Blackwell, vol. 44(6), pages 910-931, September.
    8. Justin J. P. Jansen & Frans A. J. Van Den Bosch & Henk W. Volberda, 2006. "Exploratory Innovation, Exploitative Innovation, and Performance: Effects of Organizational Antecedents and Environmental Moderators," Management Science, INFORMS, vol. 52(11), pages 1661-1674, November.
    9. Kathleen M. Eisenhardt & Nathan R. Furr & Christopher B. Bingham, 2010. "CROSSROADS---Microfoundations of Performance: Balancing Efficiency and Flexibility in Dynamic Environments," Organization Science, INFORMS, vol. 21(6), pages 1263-1273, December.
    10. Sunkee Lee & Philipp Meyer-Doyle, 2017. "How Performance Incentives Shape Individual Exploration and Exploitation: Evidence from Microdata," Organization Science, INFORMS, vol. 28(1), pages 19-38, February.
    11. Erwin Danneels & Rajesh Sethi, 2011. "New Product Exploration Under Environmental Turbulence," Organization Science, INFORMS, vol. 22(4), pages 1026-1039, August.
    12. Jillian D. Chown & Christopher C. Liu, 2015. "Geography and power in an organizational forum: Evidence from the U.S. Senate Chamber," Strategic Management Journal, Wiley Blackwell, vol. 36(2), pages 177-196, February.
    13. Morten T. Hansen, 2002. "Knowledge Networks: Explaining Effective Knowledge Sharing in Multiunit Companies," Organization Science, INFORMS, vol. 13(3), pages 232-248, June.
    14. Deborah Gladstein Ancona & David F. Caldwell, 1992. "Demography and Design: Predictors of New Product Team Performance," Organization Science, INFORMS, vol. 3(3), pages 321-341, August.
    15. Alexandre Mas & Enrico Moretti, 2009. "Peers at Work," American Economic Review, American Economic Association, vol. 99(1), pages 112-145, March.
    16. Jerker Denrell & James G. March, 2001. "Adaptation as Information Restriction: The Hot Stove Effect," Organization Science, INFORMS, vol. 12(5), pages 523-538, October.
    17. Richard L. Daft & Robert H. Lengel, 1986. "Organizational Information Requirements, Media Richness and Structural Design," Management Science, INFORMS, vol. 32(5), pages 554-571, May.
    18. Kabo, Felichism W. & Cotton-Nessler, Natalie & Hwang, Yongha & Levenstein, Margaret C. & Owen-Smith, Jason, 2014. "Proximity effects on the dynamics and outcomes of scientific collaborations," Research Policy, Elsevier, vol. 43(9), pages 1469-1485.
    19. June-Young Kim & Ji-Yub (Jay) Kim & Anne S. Miner, 2009. "Organizational Learning from Extreme Performance Experience: The Impact of Success and Recovery Experience," Organization Science, INFORMS, vol. 20(6), pages 958-978, December.
    20. John V. Gray & Enno Siemsen & Gurneeta Vasudeva, 2015. "Colocation Still Matters: Conformance Quality and the Interdependence of R&D and Manufacturing in the Pharmaceutical Industry," Management Science, INFORMS, vol. 61(11), pages 2760-2781, November.
    21. Levinthal, Daniel & March, James G., 1981. "A model of adaptive organizational search," Journal of Economic Behavior & Organization, Elsevier, vol. 2(4), pages 307-333, December.
    22. Ray Reagans, 2011. "Close Encounters: Analyzing How Social Similarity and Propinquity Contribute to Strong Network Connections," Organization Science, INFORMS, vol. 22(4), pages 835-849, August.
    23. Sebastian Raisch & Julian Birkinshaw & Gilbert Probst & Michael L. Tushman, 2009. "Organizational Ambidexterity: Balancing Exploitation and Exploration for Sustained Performance," Organization Science, INFORMS, vol. 20(4), pages 685-695, August.
    24. Haridimos Tsoukas, 2009. "A Dialogical Approach to the Creation of New Knowledge in Organizations," Organization Science, INFORMS, vol. 20(6), pages 941-957, December.
    25. Jasjit Singh & Lee Fleming, 2010. "Lone Inventors as Sources of Breakthroughs: Myth or Reality?," Management Science, INFORMS, vol. 56(1), pages 41-56, January.
    26. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    27. Daniel A. Levinthal & James G. March, 1993. "The myopia of learning," Strategic Management Journal, Wiley Blackwell, vol. 14(S2), pages 95-112, December.
    28. Tom J. M. Mom & Frans A. J. van den Bosch & Henk W. Volberda, 2009. "Understanding Variation in Managers' Ambidexterity: Investigating Direct and Interaction Effects of Formal Structural and Personal Coordination Mechanisms," Organization Science, INFORMS, vol. 20(4), pages 812-828, August.
    29. Uriel Stettner & Dovev Lavie, 2014. "Ambidexterity under scrutiny: Exploration and exploitation via internal organization, alliances, and acquisitions," Strategic Management Journal, Wiley Blackwell, vol. 35(13), pages 1903-1929, December.
    30. Kevin J. Boudreau & Tom Brady & Ina Ganguli & Patrick Gaule & Eva Guinan & Anthony Hollenberg & Karim R. Lakhani, 2017. "A Field Experiment on Search Costs and the Formation of Scientific Collaborations," The Review of Economics and Statistics, MIT Press, vol. 99(4), pages 565-576, July.
    31. Karen A. Bantel & Susan E. Jackson, 1989. "Top management and innovations in banking: Does the composition of the top team make a difference?," Strategic Management Journal, Wiley Blackwell, vol. 10(S1), pages 107-124, June.
    32. Christina Fang & Jeho Lee & Melissa A. Schilling, 2010. "Balancing Exploration and Exploitation Through Structural Design: The Isolation of Subgroups and Organizational Learning," Organization Science, INFORMS, vol. 21(3), pages 625-642, June.
    33. Ranjay Gulati & Phanish Puranam, 2009. "Renewal Through Reorganization: The Value of Inconsistencies Between Formal and Informal Organization," Organization Science, INFORMS, vol. 20(2), pages 422-440, April.
    34. Michelle Rogan & Marie Louise Mors, 2014. "A Network Perspective on Individual-Level Ambidexterity in Organizations," Organization Science, INFORMS, vol. 25(6), pages 1860-1877, December.
    35. Daniel Z. Levin & Jorge Walter & J. Keith Murnighan, 2011. "Dormant Ties: The Value Of Reconnecting," Organization Science, INFORMS, vol. 22(4), pages 923-939, August.
    36. Aimée A. Kane, 2010. "Unlocking Knowledge Transfer Potential: Knowledge Demonstrability and Superordinate Social Identity," Organization Science, INFORMS, vol. 21(3), pages 643-660, June.
    37. Argote, Linda & Ingram, Paul & Levine, John M. & Moreland, Richard L., 2000. "Knowledge Transfer in Organizations: Learning from the Experience of Others," Organizational Behavior and Human Decision Processes, Elsevier, vol. 82(1), pages 1-8, May.
    38. Xiaoquan (Michael) Zhang & Feng Zhu, 2011. "Group Size and Incentives to Contribute: A Natural Experiment at Chinese Wikipedia," American Economic Review, American Economic Association, vol. 101(4), pages 1601-1615, June.
    39. Daniel Z. Levin & Rob Cross, 2004. "The Strength of Weak Ties You Can Trust: The Mediating Role of Trust in Effective Knowledge Transfer," Management Science, INFORMS, vol. 50(11), pages 1477-1490, November.
    40. Nicolaj Siggelkow & Daniel A. Levinthal, 2003. "Temporarily Divide to Conquer: Centralized, Decentralized, and Reintegrated Organizational Approaches to Exploration and Adaptation," Organization Science, INFORMS, vol. 14(6), pages 650-669, December.
    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. Marios Kokkodis & Sam Ransbotham, 2023. "Learning to Successfully Hire in Online Labor Markets," Management Science, INFORMS, vol. 69(3), pages 1597-1614, March.
    2. Julija N. Mell & Sujin Jang & Sen Chai, 2021. "Bridging Temporal Divides: Temporal Brokerage in Global Teams and Its Impact on Individual Performance," Organization Science, INFORMS, vol. 32(3), pages 731-751, May.
    3. Tommy Pan Fang & Andy Wu & David R. Clough, 2021. "Platform diffusion at temporary gatherings: Social coordination and ecosystem emergence," Strategic Management Journal, Wiley Blackwell, vol. 42(2), pages 233-272, February.
    4. Moritz Goldbeck, 2023. "Bit by Bit: Colocation and the Death of Distance in Software Developer Networks," Rationality and Competition Discussion Paper Series 422, CRC TRR 190 Rationality and Competition.
    5. Belik, Ivan & Knudsen, Eirik Sjåholm, 2023. "Link on, Link off: Data-driven management of organizational networks for ambidexterity," Journal of Business Research, Elsevier, vol. 157(C).
    6. Metin Sengul, 2019. "Organization design as a competitive choice: an application to the study of innovation," Journal of Organization Design, Springer;Organizational Design Community, vol. 8(1), pages 1-9, December.
    7. Marios Kokkodis, 2023. "Adjusting Skillset Cohesion in Online Labor Markets: Reputation Gains and Opportunity Losses," Information Systems Research, INFORMS, vol. 34(3), pages 1245-1258, September.
    8. Chollet, Barthélemy & Revet, Karine, 2023. "Digging deep or scratching the surface? Contingent innovation outcomes of seeking advice from geographically distant ties," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    9. Linda Argote & Sunkee Lee & Jisoo Park, 2021. "Organizational Learning Processes and Outcomes: Major Findings and Future Research Directions," Management Science, INFORMS, vol. 67(9), pages 5399-5429, September.
    10. Wenke, Kathrin & Zapkau, Florian B. & Schwens, Christian, 2021. "Too small to do it all? A meta-analysis on the relative relationships of exploration, exploitation, and ambidexterity with SME performance," Journal of Business Research, Elsevier, vol. 132(C), pages 653-665.
    11. Jacqueline N. Lane & Ina Ganguli & Patrick Gaule & Eva Guinan & Karim R. Lakhani, 2021. "Engineering serendipity: When does knowledge sharing lead to knowledge production?," Strategic Management Journal, Wiley Blackwell, vol. 42(6), pages 1215-1244, June.
    12. Lin, Runhui & Lu, Yanhong & Zhou, Cheng & Li, Biting, 2022. "Rethinking individual technological innovation: Cooperation network stability and the contingent effect of knowledge network attributes," Journal of Business Research, Elsevier, vol. 144(C), pages 366-376.

    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. Sunkee Lee & Philipp Meyer-Doyle, 2017. "How Performance Incentives Shape Individual Exploration and Exploitation: Evidence from Microdata," Organization Science, INFORMS, vol. 28(1), pages 19-38, February.
    2. Linda Argote & Sunkee Lee & Jisoo Park, 2021. "Organizational Learning Processes and Outcomes: Major Findings and Future Research Directions," Management Science, INFORMS, vol. 67(9), pages 5399-5429, September.
    3. Linda Argote & Ella Miron-Spektor, 2011. "Organizational Learning: From Experience to Knowledge," Organization Science, INFORMS, vol. 22(5), pages 1123-1137, October.
    4. Carolina Rojas-Córdova & Amanda J. Williamson & Julio A. Pertuze & Gustavo Calvo, 2023. "Why one strategy does not fit all: a systematic review on exploration–exploitation in different organizational archetypes," Review of Managerial Science, Springer, vol. 17(7), pages 2251-2295, October.
    5. Olga Kassotaki, 2022. "Review of Organizational Ambidexterity Research," SAGE Open, , vol. 12(1), pages 21582440221, March.
    6. Andreea N. Kiss & Dirk Libaers & Pamela S. Barr & Tang Wang & Miles A. Zachary, 2020. "CEO cognitive flexibility, information search, and organizational ambidexterity," Strategic Management Journal, Wiley Blackwell, vol. 41(12), pages 2200-2233, December.
    7. Karl Aschenbrücker & Tobias Kretschmer, 2022. "Performance-based incentives and innovative activity in small firms: evidence from German manufacturing," Journal of Organization Design, Springer;Organizational Design Community, vol. 11(2), pages 47-64, June.
    8. Marios Kokkodis, 2023. "Adjusting Skillset Cohesion in Online Labor Markets: Reputation Gains and Opportunity Losses," Information Systems Research, INFORMS, vol. 34(3), pages 1245-1258, September.
    9. Sebastian Raisch & Michael L. Tushman, 2016. "Growing New Corporate Businesses: From Initiation to Graduation," Organization Science, INFORMS, vol. 27(5), pages 1237-1257, October.
    10. François Constant & Richard Calvi & Thomas Johnsen, 2020. "Managing tensions between exploitative and exploratory innovation through purchasing function ambidexterity Managing tensions between exploitative and exploratory innovation through purchasing functio," Post-Print hal-02891790, HAL.
    11. Alexander Zimmermann & Sebastian Raisch & Julian Birkinshaw, 2015. "How Is Ambidexterity Initiated? The Emergent Charter Definition Process," Organization Science, INFORMS, vol. 26(4), pages 1119-1139, August.
    12. Sebastian Raisch & Julian Birkinshaw & Gilbert Probst & Michael L. Tushman, 2009. "Organizational Ambidexterity: Balancing Exploitation and Exploration for Sustained Performance," Organization Science, INFORMS, vol. 20(4), pages 685-695, August.
    13. Johannes Luger & Sebastian Raisch & Markus Schimmer, 2018. "Dynamic Balancing of Exploration and Exploitation: The Contingent Benefits of Ambidexterity," Organization Science, INFORMS, vol. 29(3), pages 449-470, June.
    14. Bonesso, Sara & Gerli, Fabrizio & Scapolan, Annachiara, 2014. "The individual side of ambidexterity: Do individuals’ perceptions match actual behaviors in reconciling the exploration and exploitation trade-off?," European Management Journal, Elsevier, vol. 32(3), pages 392-405.
    15. Christina Fang & Jeho Lee & Melissa A. Schilling, 2010. "Balancing Exploration and Exploitation Through Structural Design: The Isolation of Subgroups and Organizational Learning," Organization Science, INFORMS, vol. 21(3), pages 625-642, June.
    16. Jan Ossenbrink & Joern Hoppmann, 2019. "Polytope Conditioning and Linear Convergence of the Frank–Wolfe Algorithm," Mathematics of Operations Research, INFORMS, vol. 44(1), pages 1319-1348, February.
    17. Jing A. Zhang & Tao Bai & Ryan W. Tang & Fiona Edgar & Steven Grover & Guoquan Chen, 2022. "The Development of Individual Ambidexterity Across Institutional Environments: Symmetric and Configurational Analyses," Management International Review, Springer, vol. 62(4), pages 517-540, August.
    18. Daniella Laureiro-Martínez & Stefano Brusoni & Nicola Canessa & Maurizio Zollo, 2015. "Understanding the exploration–exploitation dilemma: An fMRI study of attention control and decision-making performance," Strategic Management Journal, Wiley Blackwell, vol. 36(3), pages 319-338, March.
    19. Jensen, Are & Clausen, Tommy H., 2017. "Origins and emergence of exploration and exploitation capabilities in new technology-based firms," Technological Forecasting and Social Change, Elsevier, vol. 120(C), pages 163-175.
    20. Hughes, Paul & Hughes, Matthew & Stokes, Peter & Lee, Hanna & Rodgers, Peter & Degbey, William Y., 2020. "Micro-foundations of organizational ambidexterity in the context of cross-border mergers and acquisitions," Technological Forecasting and Social Change, Elsevier, vol. 153(C).

    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:inm:ororsc:v:30:y:2019:i:3:p:467-488. 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: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    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.