Variety-seeking, learning and performance

Abstract

According to the variance hypothesis, variety-seeking or exploration is a critical condition for improving learning and performance over time. Extant computational learning models support this hypothesis by showing how individuals who are exposed to diverse knowledge sources are more likely to find superior solutions to a particular problem. Yet this research provides no precise guidelines about how broadly individuals should search. Our goal in this paper is to elucidate the conditions under which variety-seeking in organizations is beneficial. To this end, we developed a computational model in which individuals learn as they interact with other individuals, and update their knowledge as a result of this interaction. The model reveals how the type of learning environment (performance landscape) in which the learning dynamic unfolds determines when the benefits of variety-seeking outweigh the costs. Variety-seeking is performance-enhancing only when the knowledge of the chosen learning targets (i.e., individuals to learn from) provide useful information about the features of the performance landscape. The results further suggest that superior knowledge might be available locally, i.e., in the proximity of an individual’s current location. We also identify the point beyond which variety-seeking causes a sharp performance decline and show how this point depends on the type of landscape in which the learning dynamic unfolds and the degree of specialization of individual knowledge. The presence of this critical point explains why exploration becomes very costly. The implications of our findings for establishing the boundaries of exploration are discussed.

Going beyond optimal distinctiveness: Strategic positioning for gaining an audience composition premium

“…In contrast, there is a negative relationship between the heterogeneity in the evaluative schemas of the audiences a firm engages with and the firm's ability to successfully utilize the knowledge gained regarding its audiences to craft and deliver information and narratives adjusted to its select audience group. Organizational learning research has shown that while exposure to diverse knowledge can increase learning, it can also harm learning due to the difficulty of reconciling disparate combinations of knowledge (Cattani & Kim, 2021) and the opportunity cost associated with a broad external search (Dahlander, O'Mahony, & Gann, 2016). Thus, in the case of firms learning about their audiences, engaging with highly diverse audiences in terms of their evaluative schemas could dampen a firm's ability to integrate the knowledge gained regarding its audiences.…”

Individual quality, insecure organizational attachment, and formalistic task completion: Social cognitive perspective

“…Third, knowledge serves as a process of knowledge transfer. Many scholars have examined the positive effects of the entire knowledge transfer process, including aspects such as knowledge learning [ 29 ], sharing [ 30 ], and creation [ 31 ], on individual or organizational outcomes.…”

Giant cluster formation and integrating role of bridges in social diffusion

“…In a broad sense, a diffusion process includes not only simple diffusion of information, but also more complex forms of diffusion, such as learning or imitation, in which multiple ideas compete for an adopter's attention. Adoption of each idea depends on the adopter's payoff of that idea under uncertainty and bounded rationality (e.g., Cattani & Kim, 2021; Fang et al, 2010; March, 1991; Posen et al, 2013). However, all diffusion processes have one essential characteristic in common—social actors are susceptible to other actors' influences.…”

“…The literature on learning suggests that learning processes enhance system performance as lower performers adopt good ideas from higher performers, while discarding bad ideas over time. Improvement in organizational learning mainly comes from the availability of diverse knowledge in the system (Cattani & Kim, 2021; Fang et al, 2010; March, 1991; Posen et al, 2013). To check whether the integration effect stems from such diversity, we investigate the level of diversity in ideas across a different range of S for 0 ≤ p < .05.…”

“…1370–1371) stressed the importance of bridges in understanding social dynamics as follows: “They are the channels through which ideas, influences, or information socially distant from ego may reach him.” Understanding various structural properties associated with bridges provide an idea of how a diffusion process unfolds in the social system. Building on Granovetter's structural view of social dynamics, prior work has advanced understanding in the contexts of learning (e.g., Cattani & Kim, 2021; Fang et al, 2010; Miller et al, 2006; Schilling & Fang, 2014), cultural polarization (Adams & Roscigno, 2005; Axelrod, 1997; Centola & Macy, 2007; Flache & Macy, 2011; Shibanai et al, 2001), imitation (Posen et al, 2013; Posen et al, 2020), winner‐take‐all competition (Lee et al, 2006; Lee et al, 2016), and diffusion of innovative ideas (Balachandran & Hernandez, 2018; Cattani & Ferriani, 2008).…”