Team adaptation

Jordi Blanes i Vidal and Marc Möller ()

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: We model an organization as a team choosing between a status quo project and a potentially superior alternative. We show that the members' concern for each other's motivation leads to a lack of communication, resulting in a failure to adapt (i.e. the status quo is maintained even when evidence for the alternative's superiority has been observed). Adaptation failures are particularly severe when production exhibits strong complementarities. Improving the organization's aggregate information has the adverse effect of reducing communication. In the long run, the organization can become "locked-in" with the status quo, in that adaptation is impaired for every adoptable alternative.

Keywords: teams; organizations; communication; disclosure; adaptation; motivation (search for similar items in EconPapers)
JEL-codes: D02 D23 L29 (search for similar items in EconPapers)
Date: 2016-04-06
New Economics Papers: this item is included in nep-ict, nep-mic and nep-ppm
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Working Paper: Team adaptation (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp1421

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