Cognitive Distance in and Between COP's and Firms: Where do Exploitation and Exploration Take Place, and How are They Connected?

CentER Disussion Paper Series No. 2007-04

25 Pages Posted: 9 Feb 2007

See all articles by Bart Nooteboom

Bart Nooteboom

Tilburg University - Tilburg University School of Economics and Management

Date Written: October 2006

Abstract

This paper contributes to the analysis of where and how both exploitation and exploration may take place inside and between communities and organizations. It connects with the discussion of differences between communities of practice and epistemic communities. The analysis allows for differences in cognition within communities of practice ('cognitive distance'). Such distance yields potential novelty but creates problems in utilizing that potential. In communities of practice and epistemic communities different trade-offs are made between the advantages and disadvantages of cognitive distance. Communities of practice are more oriented at exploitation, at relatively small cognitive distance. Exploration may take place in epistemic communities, with larger internal cognitive distance, but may also arise from interaction between different communities of practice, utilizing the distance between them. Organizations serve to provide the basis for the governance of such interaction. This, however, does limit the cognitive distance, and hence exploration potential, within an organization. For more radical exploration, interaction is needed between organizations, at the price of greater efforts to set up and govern collaboration. Next to communities of practice, epistemic communities and organizations, the analysis also includes communities of professionals across different organizations. They also have a role to play in a wider system of organizational forms for exploitation and exploration.

Keywords: innovation, exploration and exploitation, communities of practice

JEL Classification: D02, D21, L22, O31, O32

Suggested Citation

Nooteboom, Bart, Cognitive Distance in and Between COP's and Firms: Where do Exploitation and Exploration Take Place, and How are They Connected? (October 2006). CentER Disussion Paper Series No. 2007-04, Available at SSRN: https://ssrn.com/abstract=962330 or http://dx.doi.org/10.2139/ssrn.962330

Bart Nooteboom (Contact Author)

Tilburg University - Tilburg University School of Economics and Management ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

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