Organizing for Productive Conversations

47 Pages Posted: 29 Oct 2022 Last revised: 6 Feb 2023

See all articles by Mats Köster

Mats Köster

Central European University (CEU)

Paul Voss

HEC Paris - Finance Department; Finance Theory Group (FTG)

Multiple version iconThere are 2 versions of this paper

Date Written: August 23, 2024

Abstract

We develop a theory of conversations as part of the knowledge-creation process in the firm. Conversations focused on a specific topic create more knowledge than superficial ones. At the same time, differences in coworkers' interests, or in their ability to take credit for new insights, may prevent focused conversations. We show that, as a result, a manager who can identify productive topics benefits from enforcing focus by setting an agenda. Conversely, in innovative firms that explore fundamentally new ideas, managers have to rely on workers' expertise in identifying productive topics, and thus optimally refrain from binding the workers to an agenda. We derive a firm's optimal organizational structure, examine how this evolves over the firm's lifecycle, and outline the implications for the optimal composition of its workforce.

Keywords: Communication, Team Production, Innovation, Knowledge Creation, Organizational Design

JEL Classification: D83, D23

Suggested Citation

Köster, Mats and Voss, Paul, Organizing for Productive Conversations (August 23, 2024). Available at SSRN: https://ssrn.com/abstract=4260248 or http://dx.doi.org/10.2139/ssrn.4260248

Mats Köster (Contact Author)

Central European University (CEU) ( email )

Quellenstraße 51
Vienna
Austria

Paul Voss

HEC Paris - Finance Department ( email )

France

HOME PAGE: http://https://sites.google.com/view/paulvoss

Finance Theory Group (FTG) ( email )

United States

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