The Benefits and Liabilities of Interacting for Innovation: a Quantitative Model

Levine, S. S., Gorman, T., & Prietula, M. J. (2014). The Benefits and Liabilities of Interacting for Innovation: a Quantitative Model. In K. Pugh (Ed.), Smarter Innovation: using interactive processes to drive better business results (pp. 111-119). London: Ark Group.

20 Pages Posted: 22 Sep 2014

See all articles by Sheen S. Levine

Sheen S. Levine

University of Texas at Dallas; Columbia University

Trish Gorman

Independent

Michael Prietula

Emory University - Goizueta Business School

Date Written: September 21, 2014

Abstract

Sheen S. Levine, Trish Gorman, and Michael J. Prietula study how corporate performance is affected by peer-to-peer sharing, instances when people supplement their knowledge by interacting with others. Popular wisdom holds that such interaction benefits performance unequivocally, but the authors find otherwise. Combining qualitative fieldwork – interviews, observation, and document analysis – with mathematical modeling, they show that sharing can benefit performance, matter little, or even harm it. The effect of sharing on performance depends on a least three variables (and likely more): the learning capacity of individuals in the organization, the state of organizational memory, and turbulence in the competitive environment. The findings suggest that the effects of interaction on innovation are neither pure nor simple.

Keywords: Performance, Interaction, Advice, Sharing, Peer, Knowledge, Model

JEL Classification: C15, C63, D84, D85, L23, Z13

Suggested Citation

Levine, Sheen S. and Gorman, Trish and Prietula, Michael, The Benefits and Liabilities of Interacting for Innovation: a Quantitative Model (September 21, 2014). Levine, S. S., Gorman, T., & Prietula, M. J. (2014). The Benefits and Liabilities of Interacting for Innovation: a Quantitative Model. In K. Pugh (Ed.), Smarter Innovation: using interactive processes to drive better business results (pp. 111-119). London: Ark Group., Available at SSRN: https://ssrn.com/abstract=2499179

Sheen S. Levine (Contact Author)

University of Texas at Dallas ( email )

2601 North Floyd Road
Richardson, TX 75083
United States

Columbia University ( email )

3022 Broadway
New York, NY 10027
United States

Trish Gorman

Independent ( email )

Michael Prietula

Emory University - Goizueta Business School ( email )

1300 Clifton Road
Atlanta, GA 30322-2722
United States

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