Search, Failure, and the Value of Moderate Patience
Schmalenbach Business Review (sbr), 2010, vol. 62, issue 3, 234-259
Conventional wisdom suggests that successful innovation in complex and novel environments requires patience – persistence despite failures – to ensure broad search for good solutions. Using an agent-based simulation model, I show that the link between patience and innovation is complex: Moderate levels of patience promote broad and effective search. High levels of patience, in contrast, can have unintended effects and even decrease performance despite increasing the degree of search. Furthermore, because translating the gains of patience into performance improvements requires time, low levels of patience are generally optimal for shorter time frames. My findings indicate that paying attention to how patience affects both the explorative and exploitative aspects of search can show when patience may effectively boost innovation.
Keywords: Agent-Based Simulation; Complexity; Experimentation; Moderate Patience; Search; Innovation. (search for similar items in EconPapers)
JEL-codes: C63 D83 O31 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:sbr:abstra:v:62:y:2010:i:3:p:234-259
Access Statistics for this article
Schmalenbach Business Review (sbr) is currently edited by Wolfgang Ballwieser
More articles in Schmalenbach Business Review (sbr) from LMU Munich School of Management Contact information at EDIRC.
Bibliographic data for series maintained by sbr ( this e-mail address is bad, please contact ).