FirmNet: the scope of firms and the allocation of task in a knowledge-based economy

Abstract

The increasing knowledge intensity of jobs, typical of a knowledge economy, highlights the role of firms as integrators of know how and skills. As economic activity becomes mainly intellectual and requires the integration of specific and idiosyncratic skills, firms need to allocate skills to tasks and traditional hierarchical control may result increasingly ineffective. In this work, we explore under what circumstances networks of agents, which bear specific skills, may self-organize in order to complete tasks. We use a computer simulation approach and investigate how local interaction of agents, endowed with skills and individual decision-making rules, may produce aggregate network structure able to perform tasks. To design algorithms that mimic individual decision-making, we borrow from computer science literature and, in particular, from studies addressing protocols that produce cooperation in P2P networks. We found that self-organization depends on imitation of successful peers, competition among agents holding specific skills, and the structural features of, formal or informal, organizational networks embedding both professionals, holding skills, and project managers, holding access to jobs.

Simulating Dynamic Capabilities and Value Creation in Family Firms

“…In particular, simulation involves creating computational representations (as a set of equations) of the underlying theoretical logic that links constructs together within a simplified world (Mollona, 2010;Fioresi and Mollona, 2011). These representations are then coded into software, through computational algorithms, that is run repeatedly for multiple time periods and under varying experimental conditions to explore the outcomes of interest (Davis et al, 2007;Harrison et al, 2007;Mollona and Marcozzi, 2009a). Simulation allows scholars to make assumptions explicit, control/varying variables, consider multiple chronological and historical paths over an extended period of time (Lomi et al, 2005(Lomi et al, , 2010Mollona and Hales, 2006;Mollona and Marcozzi, 2009b).…”

Self-emerging coordination mechanisms for knowledge integration processes

“…On the one hand, our previous experiments (Mollona and Marcozzi 2009) suggest that for a network of specialists to be able to dynamically respond to evolving tasks it is required that the nodes of the network are able to frequently rewire and to hold an high number of connections; on the other hand, the described learning process requires stability and continuity of collaboration with specific nodes. In this light, our future work will address the mechanisms and the circumstances that better handle the dilemma between dynamic plasticity of an intra-organizational network and the continuity of association among specific nodes required to enact learning processes.…”

“…In previous work (Mollona and Marcozzi 2009) we compared two different decision making process: we called them ''Hierarchical model'' (HI) and ''Self-Organizing model'' (SO). The aim was to understand which one of the two performs better in specific environments.…”

“…In the interaction phase, NTs try to complete received tasks by assigning single jobs to the NSs they are connected to (the nodes that are connected to a NT agent form a neighbor); in the rewiring phase, the network evolves according to individual decision-making rules that are aimed at finding more suitable neighbors to complete tasks; finally, in the imitation phase nodes imitate successful strategies (a, b) of other nodes (Mollona and Marcozzi 2009). …”

Preface to special issue on cooperation in selfish systems

“…They show that the evolving structure selects robustly for socially optimal outcomes. Mollona and Marcozzi (2008) present and compare a set of models of task allocation for firms in a knowledge-based economy. Interestingly these models were derived partially from proposed P2P protocols.…”