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How Structural Changes in Complex Networks Impact Organizational Learning Performance

Author

Listed:
  • Somayeh Koohborfardhaghighi

    () (College of Engineering, Seoul National University)

  • Jorn Altmann

    () (College of Engineering, Seoul National University)

Abstract

The power of using knowledge against competitors is a key success factor in the information age. However, the knowledge itself is not the source of competitive advantage for an organization; rather its power lies in its use. In a learning organization, collective knowledge of the individuals is needed, in order to reach the overall goals of the organization. From an organizational perspective, the most important aspect of knowledge management is knowledge transfer. Therefore, knowledge within the organization should be available to others through social interactions. The contributions of this paper are two-fold: First, we show that the network structure that emerges from those social interactions depends on the variability in individual patterns of behavior. Second, we emphasize the importance of network structure changes for organizational learning. A consequence is that a high clustering coefficient within a network does not necessarily produce a high learning outcome. It can even result in a loss of innovation. Another consequence is that a small average shortest path length within a network of individuals positively affects organizational learning. Therefore, certain topological features of a network can help network members to have a better access to information within an organization.

Suggested Citation

  • Somayeh Koohborfardhaghighi & Jorn Altmann, 2014. "How Structural Changes in Complex Networks Impact Organizational Learning Performance," TEMEP Discussion Papers 2014111, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Mar 2014.
  • Handle: RePEc:snv:dp2009:2014111
    as

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    File URL: ftp://147.46.237.98/DP-111.pdf
    File Function: First version, 2014
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    References listed on IDEAS

    as
    1. Somayeh Koohborfardhaghighi & Jorn Altmann, 2014. "How Placing Limitations on the Size of Personal Networks Changes the Structural Properties of Complex Networks," TEMEP Discussion Papers 2014110, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jan 2014.
    2. 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.
    3. Barabási, Albert-László & Albert, Réka & Jeong, Hawoong, 1999. "Mean-field theory for scale-free random networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 272(1), pages 173-187.
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    Cited by:

    1. Somayeh Koohborfardhaghighi & Jorn Altmann, 2014. "How Variability in Individual Patterns of Behavior Changes the Structural Properties of Networks," TEMEP Discussion Papers 2014114, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jun 2014.

    More about this item

    Keywords

    Complex Networks; Organizational Learning; Knowledge Management; Network Formation.;

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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