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The dynamics of organizational structures and performances under diverging distributions of knowledge and different power structures

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  • Giovanni Dosi
  • Luigi Marengo

Abstract

In this work we analyze the characteristics and dynamics of organizations wherein members diverge in terms of capabilities and visions they hold, and interests which they pursue. In particular we examine how different forms of power can achieve coordination among such diverse capabilities, visions and interests while at the same time ensuring control and allowing mutual learning. By means of a simple simulation model of collective decisions by heterogeneous agents, we will examine three different forms of power, ranging from the power to design the organization, to the power to overrule by veto or fiat the others decisions, to the power to shape the very preferences of the members of the organization. We study the efficiency of different balances between the three foregoing mechanisms, within a framework in which indeed organizations aggregate and make compatible different pieces of distributed knowledge, but the causation arrow goes also the other way round: organizations shape the characteristics and distribution of knowledge itself, and of the micro visions and judgements.

Suggested Citation

  • Giovanni Dosi & Luigi Marengo, 2013. "The dynamics of organizational structures and performances under diverging distributions of knowledge and different power structures," LEM Papers Series 2013/14, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    • Handle: RePEc:ssa:lemwps:2013/14
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    Cited by:

    1. Giovanni DOSI & Maria Enrica VIRGILLITO, 2019. "Whither the evolution of the contemporary social fabric? New technologies and old socio‐economic trends," International Labour Review, International Labour Organization, vol. 158(4), pages 593-625, December.
    2. 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, Oxford University Press, vol. 41(3), pages 775-806.
    3. Armanda Cetrulo & Dario Guarascio & Maria Enrica Virgillito, 2020. "Anatomy of the Italian occupational structure: concentrated power and distributed knowledge [How Europe’s economies learn: a comparison of work organization and innovation mode for the EU-15]," Industrial and Corporate Change, Oxford University Press, vol. 29(6), pages 1345-1379.
    4. Khraisha, Tamer, 2020. "Complex economic problems and fitness landscapes: Assessment and methodological perspectives," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 390-407.
    5. Lucrezia Fanti & Dario Guarascio & Matteo Tubiana, 2019. "Skill Gap, Mismatch, and the Dynamics of Italian Companies' Productivity," LEM Papers Series 2019/30, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    6. Staccioli, Jacopo & Napoletano, Mauro, 2021. "An agent-based model of intra-day financial markets dynamics," Journal of Economic Behavior & Organization, Elsevier, vol. 182(C), pages 331-348.
    7. Serenella Caravella & Valeria Cirillo & Francesco Crespi & Dario Guarascio & Mirko Menghini, 2022. "The diffusion of digital skills across EU regions:structural drivers and polarization dynamics," Working Papers in Public Economics 227, University of Rome La Sapienza, Department of Economics and Law.
    8. Cirillo, Valeria & Rinaldini, Matteo & Staccioli, Jacopo & Virgillito, Maria Enrica, 2018. "Workers’ awareness context in Italian 4.0 factories," GLO Discussion Paper Series 240, Global Labor Organization (GLO).
    9. 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.
    10. Ugo Fiore & Adrian Florea & Claudiu Vasile Kifor & Paolo Zanetti, 2021. "Digitization, Epistemic Proximity, and the Education System: Insights from a Bibliometric Analysis," JRFM, MDPI, vol. 14(6), pages 1-17, June.
    11. Marta Fana & Francesco Sabato Massimo & Angelo Moro, 2021. "Autonomy and control in mass remote working during the Covid-19 pandemic. Evidence from a cross-professional and cross-national analysis," LEM Papers Series 2021/28, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    12. Giovanni Dosi, 2022. "The Agenda for Evolutionary Economics: Results, Dead Ends, and Challenges Ahead," LEM Papers Series 2022/24, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    13. repec:hal:spmain:info:hdl:2441/5mqflt6amg8gab4rlqn6sbko4b is not listed on IDEAS
    14. Nicola Cassandro & Marco Centra & Dario Guarascio & Piero Esposito, 2021. "What drives employment–unemployment transitions? Evidence from Italian task-based data," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(3), pages 1109-1147, October.
    15. Stefano Costa & Stefano De Santis & Giovanni Dosi & Roberto Monducci & Angelica Sbardella & Maria Enrica Virgillito, 2021. "From organizational capabilities to corporate performances: at the roots of productivity slowdown," LEM Papers Series 2021/21, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    16. Giovanni Dosi & Luigi Marengo & Alessandro Nuvolari, 2019. "Institutions are neither autistic maximizers nor flocks of birds: self-organization, power and learning in human organizations," Chapters, in: Francesca Gagliardi & David Gindis (ed.), Institutions and Evolution of Capitalism, chapter 13, pages 194-213, Edward Elgar Publishing.
    17. Dosi, G. & Virgillito, M.E., 2021. "In order to stand up you must keep cycling: Change and coordination in complex evolving economies," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 353-364.
    18. Giovanni Dosi & Luigi Marengo & Alessandro Nuvolari, 2020. "Institutions and economic change: some notes on self-organization, power and learning in human organizations," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(1), pages 1-22, March.
    19. Marta Fana & Davide Villani & Martina Bisello, 2021. "Mind the task: evidence on persistent gender gaps at the workplace," JRC Working Papers on Labour, Education and Technology 2021-03, Joint Research Centre (Seville site).
    20. Cirillo, Valeria & Rinaldini, Matteo & Staccioli, Jacopo & Virgillito, Maria Enrica, 2021. "Technology vs. workers: the case of Italy’s Industry 4.0 factories," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 166-183.
    21. Giovanni Dosi & Dario Guarascio & Andrea Ricci & Maria Enrica Virgillito, 2021. "Neodualism in the Italian business firms: training, organizational capabilities, and productivity distributions," Small Business Economics, Springer, vol. 57(1), pages 167-189, June.
    22. Franco, Chiara & Landini, Fabio, 2022. "Organizational drivers of innovation: The role of workforce agility," Research Policy, Elsevier, vol. 51(2).
    23. Fana Marta & Giangregorio Luca, 2021. "Routine-biased technical change can fail: Evidence from France," JRC Working Papers on Labour, Education and Technology 2021-14, Joint Research Centre (Seville site).
    24. Valeria Cirillo & Matteo Rinaldini & Jacopo Staccioli & Maria Enrica Virgillito, 2018. "Workers' intervention authority in Italian 4.0 factories: autonomy and discretion," LEM Papers Series 2018/13, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

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    Keywords

    authority; power; distributed knowledge;
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