Organizing for Productive Conversations
47 Pages Posted: 29 Oct 2022 Last revised: 6 Feb 2023
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Organizing for Productive Conversations
Number of pages: 47
Posted: 29 Oct 2022
Last Revised: 23 Aug 2024
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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: 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
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