Decoding cultural conflicts

As pioneers of the Carnegie Perspective recognized, conflicts in organizations can exist even when incentives of all parties are aligned. These can often be traced to differences in cognitions such as beliefs and values, which are foundational components of any given culture. This paper refines the operationalization of cultural clashes by identifying differences in beliefs about causality ("which actions cause which outcomes") and morality (in the broad sense of "what is evaluated as desirable") as two fundamental sources of conflict. In our first study, we demonstrate empirically that participants recognize and distinguish between these two sources of conflict. In our second study, we test the hypotheses that while misalignments in either causal or moral codes increase observers' perceptions of relationship conflict, negative affect, likelihood of avoidance, and lower perceived likelihood of conflict resolution, the effects are stronger for misalignments in moral codes than misalignments in causal codes and strongest when both causal and moral codes are misaligned. We test these arguments using vignette-based experimental studies. Our findings support our hypotheses. This research has significant implications for the understanding of conflict dynamics within and beyond organizational contexts. By recognizing the pivotal role of cultural differences in shaping conflicts, organizations and decision-makers can better anticipate, manage, and potentially preempt such conflicts.

Corporate Hierarchy and Organizational Learning: Member Turnover, Code Change, and Innovation in the Multiunit Firm

This study examines how recombinant innovation is affected by member turnover and organizational learning within a corporate hierarchy. Prior work has overlooked the role of organizational structure in organizational learning, focusing instead on the knowledge provided by individual new hires or on the disruption caused by individual departures. We address this gap by applying March’s [March JG (1991) Exploration and exploitation in organizational learning. Organ. Sci. 2(1):71–87.] mutual learning model to a corporate hierarchy. In doing so, we theorize how the contributions of corporate staff to socializing new employees and to learning from the organizational code may differ from those of the organization’s subunit members. Empirically, we examine the learning effects of aggregate corporate and subunit arrivals and departures on novel recombinant innovation by subunits. Using 24 years of Motorola company directories, we construct membership turnover measures for corporate and subunit employees and exploit patent data to capture recombinant innovation. Our results suggest that, whereas the influx of new ideas through arrivals may be critical, breaking the pattern of inertial behavior through departures is more important for recombinant innovation. Corporate departures matter most for recombinant innovation, a result that reflects not only corporate staff’s slower individual learning from the organizational code but also its ability to update that code more quickly. In supplementary analyses, we find different effects for technical and nontechnical staff and internal and external arrivals, as well as demonstrate the mutual learning mechanism using internal corporate documents to capture code change. Our study has strong implications for theories of organizational learning, strategic human capital, organization design, and innovation.

The Dual Challenge of Search and Coordination for Organizational Adaptation: How Structures of Influence Matter

Organizations increasingly need to adapt to challenges in which search and coordination cannot be decoupled. In response, many have experimented with “agile” and “flat” designs that dismantle traditional forms of hierarchy to harness the distributed knowledge of specialized individuals. Despite the popularity of such practices, there is considerable variation in their implementation as well as conceptual ambiguity about the underlying premise. Does effective rapid experimentation necessarily imply the repudiation of hierarchical structures of influence? We use computational models of multiagent reinforcement learning to study the effectiveness of coordinated search in groups that vary in how they influence each other’s beliefs. We compare the behavior of flat and hierarchical teams with a baseline structure without any influence on beliefs (a “crowd”) when all three are placed in the same task environments. We find that influence on beliefs—whether it is hierarchical or not—makes it less likely that agents stabilize prematurely around their own experiences. However, flat teams can engage in excessive exploration, finding it difficult to converge on good alternatives, whereas hierarchical influence on beliefs reduces simultaneous uncoordinated exploration, introducing a degree of rapid exploitation. As a result, teams that need to achieve agility (i.e., rapid satisfactory results) in environments that require coordinated search may benefit from a hierarchical structure of influence—even when the apex actor has no superior knowledge, foresight, or capacity to control subordinates’ actions.

The Aggregation–Learning Trade-off

Organizational decision making that leverages the collective wisdom and knowledge of multiple individuals is ubiquitous in management practice, occurring in settings such as top management teams, corporate boards, and the teams and groups that pervade modern organizations. Decision-making structures employed by organizations shape the effectiveness of knowledge aggregation. We argue that decision-making structures play a second crucial role in that they shape the learning of individuals that participate in organizational decision making. In organizational decision making, individuals do not engage in learning by doing but, rather, in what we call learning by participating, which is distinct in that individuals learn by receiving feedback not on their own choices but, rather, on the choice made by the organization. We examine how learning by participating influences the efficacy of aggregation and learning across alternative decision-making structures and group sizes. Our central insight is that learning by participating leads to an aggregation–learning trade-off in which structures that are effective in aggregating information can be ineffective in fostering individual learning. We discuss implications for research on organizations in the areas of learning, microfoundations, teams, and crowds.

Study on the Adaptation with Learning About the Environment: The Case of Post-Acquisition Integration

Organizations can be considered as complex systems that can adapt to their changing environment. In this work, we study a complex system adapting to an unfamiliar environment with learning; this is grounded in the context of the post-acquisition integration of the companies. More specifically, we conceptualize post-acquisition integration from the perspective of behavioral theory as a reason for the environmental changes to the firms (agents). We studied the adaptation of these complex systems and we propose a coupled learning method over the NK landscape. The simulation results show that the initial perceptions of the agents regarding the new task environment can be quite influential to the performance of the entire system during the adaptation process. Correct initial perceptions can help the system to quickly achieve high performance, whereas incorrect initial perceptions may prevent the system from reaching high performance. Lack of initial perceptions could lead to a slow yet robust adaptation process with a moderate level of performance. Moreover, certain other factors, such as the sensitivity to the feedback from the environment, the incentive of the system for exploration, and the learning frequency, may have different impact on the adaptation and performance of the system.

The Impact of Organizational Culture Differences, Synergy Potential, and Autonomy Granted to the Acquired High-Tech Firms on the M&A Performance

The aim of the article is to examine the factors influencing the overall acquisition performance of the companies acquiring the high-tech firms. The data were gathered during 2007-2009 via a cross-sectional survey using a questionnaire on a sample of Israeli high-tech firms that were engaged in acquisitions. Given its global leading role in the high-tech sector, Israel constitutes an important site for the study of mergers in this industrial domain. The findings indicate that synergy potential (similarities and complementarities) between high-tech merging firms, effectiveness of post-acquisition integration, and organizational cultural differences positively influence the overall acquisition performance merging high-tech firms. Moreover, our findings suggest that organizational cultural differences moderate the relationship between effectiveness of post-acquisition integration and overall acquisition performance as such that positive effect of effectiveness of post-acquisition integration is higher when organizational differences are higher. Our findings indicate that organizational cultural differences also positively moderate the relationship between autonomy granted and the overall acquisition performance. An important contribution of the present article is the development of a conceptual framework incorporating the direct and moderating effect of organizational cultural differences and autonomy granted on the overall performance of acquisition.