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Toward Formal Representations of Search Processes and Routines in Organizational Problem Solving. An Assessment of the State of the Art

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  • Giovanni Dosi
  • Marco Faillo
  • Luigi Marengo
  • Daniele Moschella

Abstract

This paper presents a critical overview of some recent attempts at building formal models of organizations as information-processing and problem-solving entities. We distinguish between two classes of models according to two distinct objects of analysis. The first class includes models mainly addressing information processing and learning; the second class includes models focusing upon the relationship between the division of cognitive labor and search process in some problem-solving space. The results begin to highlight important comparative properties regarding the impact on problem-solving efficiency and learning of different forms of hierarchical governance, the dangers of lock-in associated with specific forms of adaptive learning, the relative role of "online" vs. "offline" learning, the impact of the "cognitive maps" which organizations embody, the possible trade-offs between accuracy and speed of convergence associated with different "decomposition schemes", the (ambiguous) role of organizational memory in changing environments. We argue that these are important formal tools towards the development of a comparative institutional analysis focusing on the distinct properties of different forms of organization and accumulation of knowledge

Suggested Citation

  • Giovanni Dosi & Marco Faillo & Luigi Marengo & Daniele Moschella, 2011. "Toward Formal Representations of Search Processes and Routines in Organizational Problem Solving. An Assessment of the State of the Art," LEM Papers Series 2011/04, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    • Handle: RePEc:ssa:lemwps:2011/04
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    Cited by:

    1. Giovanni Dosi & Luigi Marengo & Evita Paraskevopoulou & Marco Valente, 2017. "A model of cognitive and operational memory of organizations in changing worlds," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 41(3), pages 775-806.
    2. Giovanni Dosi & Marco Faillo & Virginia Cecchini Manara & Luigi Marengo & Daniele Moschella, 2017. "The formalization of organizational capabilities and learning: results and challenges," LEM Papers Series 2017/08, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    3. Chatterjee, Sidharta, 2011. "The Neuroeconomics of Learning and Information Processing; Applying Markov Decision Process," MPRA Paper 28883, University Library of Munich, Germany.
    4. Rouslan Koumakhov & Adel Daoud, 2017. "Routine and reflexivity: Simonian cognitivism vs practice approach," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(4), pages 727-743.

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    More about this item

    Keywords

    Information processing; Problem-solving; Organizational structure;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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