The Intertwining Impact of Intraorganizational and Routine Networks on Routine Replication Dynamics: An Agent-Based Model

Abstract

Organizational routines are means through which organizations can reutilize best practices and so their replication, i.e., duplicating beneficial routines across context, is a key value-creating strategy. However, it is difficult to map network effects on routine replication. Here, we investigated routine replicating dynamics considering two types of network contexts, namely, (1) connections between different (geographically distributed) units in a decentralized organization and (2) the coupling relation between routines, i.e., a bundle of different routines involved in each unit. By considering routine replication as one kind of template-based activities between different units, we examined interrelations between routines with a NK-based fitness landscape model. Our results show that when there is an appropriate level of absorptive capacities (i.e., when organizations are capable of identifying and acquiring externally generated knowledge), there is an optimal combination of these two types of networks, which is beneficial to routine replicating practices and organization adaptation. Furthermore, we also found that intraorganizational variations, including template-duplicating errors and innovative activities, are instrumental to enhance adaptive changes. Our findings suggest measures to control and manage best practice diffusion across organizations.