L8 Absorptive Capacity Flashcards
what are characteristics of an organisation
An organisation is a myopically, goal-directed, socially constructed more or less focused system if coordinated activities or capabilities
What is absorptive capacity?
Ability to understand foreign knowledge which allows for making sense of what is being argued/communicated
wHAT IS COGNITIVE DISTANCE?
Cognitive distance - distance between finance man and neuroscientist
What happens if CD is high at the start?
ability to collaborate is low at the start
What happens if a team has high AC and different types of knowledge wsith CD?
Intellectual capital increases which increases innovation
Innovation is outcome of a team with increased AC
What does high CD increase?
Novelty value
What happens when team start to understand eachother?
CD decreases which reduces novelty value
How do you avoid novelty value decreasing?
need to refresh team -> in pharma R&D teams are refreshed as drug development process goes from phase to another which requires different people
How do you calculate innovative performance?
A x N
What does optimal novelty creation depend on?
Optimal CD
Why does innovation disappear when trust is maximized
Too much trust in novelty creation is bad as there are no challenges to ideas from team leaders
Why is novelty creation also zero when trust is zero
Too much challenge & willingness to collaborate is reduced
Why is creation of diversity necessary?
To generate innovative & creative ideas
