Controlling replication via the belief system in multi-unit organizations

TL;DR

This paper explores how belief systems, specifically conformity desires, influence knowledge diffusion in multi-unit organizations, revealing that peer-to-peer networks enhance synchronization more effectively than unilateral sharing, with centralized structures performing worse.

Contribution

It introduces an agent-based simulation model to analyze how network structures and belief-driven behaviors impact knowledge diffusion in multi-unit organizations.

Findings

Peer-to-peer exchange promotes better knowledge synchronization.

Network structure influences diffusion effectiveness based on interdependencies.

Centralized networks reduce organizational performance.

Abstract

Multi-unit organizations such as retail chains are interested in the diffusion of best practices throughout all divisions. However, the strict guidelines or incentive schemes may not always be effective in promoting the replication of a practice. In this paper we analyze how the individual belief systems, namely the desire of individuals to conform, may be used to spread knowledge between departments. We develop an agent-based simulation of an organization with different network structures between divisions through which the knowledge is shared, and observe the resulting synchrony. We find that the effect of network structures on the diffusion of knowledge depends on the interdependencies between divisions, and that peer-to-peer exchange of information is more effective in reaching synchrony than unilateral sharing of knowledge from one division. Moreover, we find that centralized network structures lead to lower performance in organizations.