Session 265

Learning, Search, Slack: The behavioral theory revisited

Track I

Date: Monday, September 22, 2014

Track P

Time: 14:45 – 16:00

Paper

Room: Malta


Session Chair:

  • Luca Berchicci, Erasmus University-Rotterdam

Title: Delayed Learning from Own Failure in Market Exit Decision

Authors

  • June-Young Kim, University of Illinois at Urbana-Champaign
  • Ann Terlaak, University of Wisconsin
  • Pingshu Li, University of Kansas

Abstract: Firms make abandonment decisions through both experiential and vicarious learning, but the interactions between the two learning mechanisms are rarely studied. We argue that vicarious learning may impede, rather than complement, experiential learning, and consequently firms may be slow to abandon poorly-performing practices. Although firms with poor post-adoption performance seek to learn from other non-abandoners, vicarious learning could make it even harder to interpret own poor performance when the performance variability of other non-abandoners is high. We further suggest that domain knowledge will exacerbate the effects of vicarious learning on the delayed abandonment. We test our theories in the context of market exit decisions by the whole population of 2,695 power marketers that entered the U.S. wholesale electricity market during 1993–2005.  

Title: Innovation Strategy in Temporary Organizations

Authors

  • Sam MacAulay, Imperial College London
  • Andrew Davies, University College London
  • Mark Dodgson, University of Queensland

Abstract: This paper draws on an in-depth study of Europe’s largest infrastructure project to show how the multiplex and temporary nature of these organizations problematizes the organization of innovation. Our analysis identifies four areas where the organization of innovation meaningfully departs from that found in traditional business firms: the rationale for innovation, appropriation of value, locus of innovation, and creation and maintenance of organizational slack. We draw on these findings to show how a granular understanding of organizational form is essential if strategic and organizational theory is to explain the innovation strategy beyond the classic business firm. More generally, we argue that expanding this research program to include other ‘unusual’ organizational forms- such as social movements, NGOs, guilds, and mutual societies- would open up fascinating possibilities for extending our understanding of the innovation process.

Title: Interdependence, Decomposability and Search Strategies: Implications for Firms’ Long-Run Financial Performance

Authors

  • Gianluca Vagnani, Sapienza University of Rome
  • Loredana Volpe, Sapienza University of Rome
  • Corrado Gatti, Sapienza University of Rome

Abstract: This study considers how interdependence and decomposability at the industry level moderate the contribution of exploration and exploitation to firms’ long-run financial performance. We use patent data to measure interdependence and decomposability and computer-assisted content analysis to derive firms’ orientations toward search strategies. We also introduce statistical techniques to control for endogeneity. Our analysis shows that in industries with high levels of interdependence and low levels of decomposability, exploration improves firms’ long-run financial performance. Conversely, in industries with more limited levels of interdependence and high levels of decomposability, exploitation becomes more beneficial to firms’ long-run financial performance. We hope our ideas will influence several areas of future research, not the least of which involves search, interdependence, and decomposability in developing our understanding of organizational success.

Title: Search Depth, Absorptive Capacity, and Innovation Performance: The Role of Specialist and Generalist Knowledge Workers

Authors

  • Juhana Peltonen, Hanken School of Economics
  • Mikko Laine, Aalto University
  • Aku Valtakoski, Aalto University

Abstract: Firms engage in organizational search for new knowledge outside their boundaries to innovate. However, studies have found that firms may ‘over-search’, resulting in diminishing returns of search on innovation performance. Drawing on the absorptive capacity literature, we examine how the individual employee’s abilities contribute to the extent a firm is able to benefit from external search in depth. By combining population-level linked employer-employee data with data from the Community Innovation Survey, we find that the share of generalist knowledge workers of the firm’s employees negatively moderates the effect between search depth and innovation performance. The share of specialist knowledge workers is found to have a direct unmoderated effect.

All Sessions in Track I...

Sun: 08:00 – 09:15
Session 278: Routines: Theoretical and Empirical Advancements and Avenues for Future Research
Sun: 09:30 – 10:45
Session 463: Big Data: Revolutionizing Innovation and Competition
Sun: 11:15 – 12:30
Session 464: Foundations Session: A conversation with Michael Tushman on Leadership, Innovation and Strategic Change
Sun: 15:45 – 17:00
Session 270: Innovation in MNCs and Global Networks
Session 275: Open Innovation: Outcomes and antecedents
Sun: 17:15 – 18:30
Session 605: Knowledge and Innovation IG Business Meeting
Mon: 08:00 – 09:15
Session 260: IPRs, Appropriability and Innovation
Session 274: Incumbents, Radical Innovations and Disruptive Technologies
Mon: 11:00 – 12:15
Session 276: Organizational Learning
Session 277: Learning From Others
Session 372: The Challenges of Global Operations: Managing R&D and Complexity
Session 423: Alliances and Innovation Performance
Mon: 14:45 – 16:00
Session 265: Learning, Search, Slack: The behavioral theory revisited
Session 269: Knowledge Flows: Transfer, sharing and replication
Mon: 16:30 – 17:45
Session 254: Conversations about Knowledge
Session 257: Spin offs, Venture Capital and Entrepreneurship
Tue: 08:00 – 09:15
Session 259: Institutionalizing Innovation: Norms, status and legitimacy issues
Session 273: From Internal Resources to Customer Needs
Session 383: Globalization of R&D: Implications for Learning and Innovation
Tue: 11:00 – 12:15
Session 267: The Role of Individuals in Innovation
Session 272: Research and Development: Antecedents and outcomes
Session 361: Creativity and Innovation
Session 469: M&As and Innovation
Tue: 15:30 – 16:45
Session 262: Networks of Innovators
Session 263: Innovation Models in Emerging Economies
Tue: 17:15 – 18:30
Session 255: Exploration and Exploitation
Session 256: Organizing for Open Innovation
Session 261: Practices and Processes for Innovation

All Sessions in Track P...

Sun: 08:00 – 09:15
Session 459: Theoretical Foundations of Behavioral Strategy I
Sun: 09:30 – 10:45
Session 460: Theoretical Foundations of Behavioral Strategy II
Sun: 11:15 – 12:30
Session 461: Theoretical Foundations of Behavioral Strategy III
Sun: 15:45 – 17:00
Session 360: Heuristics and Biases in Strategy Choices
Session 363: Social Influence & Comparisons
Sun: 17:15 – 18:30
Session 612: Behavioral Strategy IG Business Meeting
Mon: 08:00 – 09:15
Session 354: Goals and Aspirations
Mon: 11:00 – 12:15
Session 352: CEO Decision Making
Mon: 14:45 – 16:00
Session 265: Learning, Search, Slack: The behavioral theory revisited
Session 353: Behavioral Foundations of Mergers & Acquisitions
Mon: 16:30 – 17:45
Session 359: Cognition Under Uncertainty & Risk Taking
Tue: 08:00 – 09:15
Session 358: Cognitive Processes in Strategy
Session 362: Search for Better Strategies
Tue: 11:00 – 12:15
Session 361: Creativity and Innovation
Tue: 15:30 – 16:45
Session 355: Behavioral Elements of Institutional Theory
Session 453: Competitive Dynamics
Tue: 17:15 – 18:30
Session 356: Affective and Cognitive Processes in Strategy
Session 357: Learning Processes


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