2003
DOI: 10.1287/orsc.14.5.541.16764
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Interaction Value Analysis: When Structured Communication Benefits Organizations

Abstract: We present a mathematical model that predicts and explains the circumstances under which a management-defined communication structure can add value to an organization. This model provides a game-theoretical basis for contingent organizational design by relating empirical observations of real organizations to the solution of a rational choice model based on game theory. We constructed a multiple-player, noncooperative game in which players have full knowledge of, and universal communication access to, each othe… Show more

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Cited by 21 publications
(24 citation statements)
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“…(2009) point out, not all well-connected, aspiring entrepreneurs are able to successfully launch a business. Clearly, social capital is not universally beneficial for performance either-for example, because of investments involved in building and maintaining relationships, or since available resources are redundant or irrelevant (Nahapiet and Ghoshal 1998;Nasrallah et al 2003;Uzzi 1996).…”
Section: Theoretical Background and Hypothesismentioning
confidence: 99%
“…(2009) point out, not all well-connected, aspiring entrepreneurs are able to successfully launch a business. Clearly, social capital is not universally beneficial for performance either-for example, because of investments involved in building and maintaining relationships, or since available resources are redundant or irrelevant (Nahapiet and Ghoshal 1998;Nasrallah et al 2003;Uzzi 1996).…”
Section: Theoretical Background and Hypothesismentioning
confidence: 99%
“…For this reason, there was no need to model the constraints that arise from some members of the network becoming over-burdened with requests. Nasrallah et al (2003) generalized the Huberman-Hogg model by allowing for the people on the network to be slowed down by a backlog of interaction requests. The most interesting properties of this constrained I.V.A.…”
Section: Interaction Valuementioning
confidence: 99%
“…This competition improves the aggregate value of interactions up to a point, the Nash Equilibrium, which in I.V.A. seems to be unique, although no proof of this is provided by Nasrallah et al (2003). In addition, this equilibrium is sometimes the same as the highest value obtainable, i.e., a core solution to the game, but in other cases the core fails to exist (Owen, 1995).…”
Section: Interaction Valuementioning
confidence: 99%
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