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The flow of ideas and timing of evaluation as determinants of knowledge creation

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  • Sridhar Seshadri
  • Zur Shapira

Abstract

There are different perspectives on the study of knowledge in organizations, developed in economics, sociology, anthropology and organization theory. Several authors followed Schumpeter's idea that innovations are new combinations of existing knowledge and incremental learning. Kogut and Zander further developed this idea and defined knowledge as a portfolio of options, and emphasized the importance of combinative capacities in knowledge creation. In a similar vein, Garud and Nayyar developed a notion of the transformative capacitiy of a firm in analyzing technological innovations. This paper follows in this tradition by pointing at the effects of different organizational structures on the flow of ideas and on the possibility of combining proposals in organizations. Communication structures, span of control and timing of evaluation are shown, using computer simulations, to have a large impact on the degree to which commonalities and complementarities among ideas and proposals can be detected and on the eventual combination of ideas for knowledge creation. Implications for organizational design are discussed. Copyright 2003, Oxford University Press.

Suggested Citation

  • Sridhar Seshadri & Zur Shapira, 2003. "The flow of ideas and timing of evaluation as determinants of knowledge creation," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 12(5), pages 1099-1124, October.
    • Handle: RePEc:oup:indcch:v:12:y:2003:i:5:p:1099-1124
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    Cited by:

    1. Saerom Lee & Felipe A. Csaszar, 2020. "Cognitive and Structural Antecedents of Innovation: A Large-Sample Study," Strategy Science, INFORMS, vol. 5(2), pages 71-97, June.
    2. Pertusa-Ortega, Eva M. & Zaragoza-Sáez, Patrocinio & Claver-Cortés, Enrique, 2010. "Can formalization, complexity, and centralization influence knowledge performance?," Journal of Business Research, Elsevier, vol. 63(3), pages 310-320, March.
    3. Thorbjørn Knudsen & Daniel A. Levinthal, 2007. "Two Faces of Search: Alternative Generation and Alternative Evaluation," Organization Science, INFORMS, vol. 18(1), pages 39-54, February.
    4. Letícia Castro Peixoto & Ricardo Rodrigues Barbosa & Adriana Ferreira Faria, 2022. "Management of Regional Knowledge: Knowledge Flows Among University, Industry, and Government," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(1), pages 92-110, March.
    5. Dongil D. Keum & Kelly E. See, 2017. "The Influence of Hierarchy on Idea Generation and Selection in the Innovation Process," Organization Science, INFORMS, vol. 28(4), pages 653-669, August.
    6. Dan Breznitz & Mollie Taylor, 2011. "California Dreaming? Cross-Cluster Embeddedness and the Systematic Non-Emergence of the 'Next Silicon Valley'," DRUID Working Papers 11-11, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    7. Zur Shapira, 2000. "Governance in Organizations: A Cognitive Perspective," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 4(1), pages 53-67, March.
    8. Ana Morariu & Flavia Stoian & Ana Maria Marinoiu & Doina Crişan Hăbean, 2008. "Empirical Analysis Over The Evolution Of The Innovational Fixed Costs And Its Recognition In The Human Resources Orientated Environment," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(10), pages 1-3.
    9. Sáenz-Royo, Carlos & Lozano-Rojo, Álvaro, 2023. "Authoritarianism versus participation in innovation decisions," Technovation, Elsevier, vol. 124(C).
    10. Felipe A. Csaszar & J. P. Eggers, 2013. "Organizational Decision Making: An Information Aggregation View," Management Science, INFORMS, vol. 59(10), pages 2257-2277, October.
    11. Francesco Rullani & Francesco Zirpoli, 2013. "Coordination of joint search in distributed innovation processes: Lessons from the effects of initial code release in Open Source Software development," Working Papers 20, Department of Management, Università Ca' Foscari Venezia.

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