Jack of all trades and master of knowledge: The role of diversification in new distant knowledge integration

Abstract

Research Summary We consider the role of individual‐level diversification as a mechanism through which skilled researchers engage in successful exploration—recognizing and integrating new knowledge external to one's domains of expertise. To approach an ideal experiment, we (a) employ a matching procedure and (b) exploit the unexpected adoption of Microsoft Kinect as a motion‐sensing technology in research. We evaluate the impact of Kinect and its embodiment of new knowledge on a set of ability‐matched, diversity‐varying researchers without prior experience in motion‐sensing and find that diversified researchers explore more successfully than their more specialized peers. We also examine the role of personal preferences and professional incentives as antecedents of diversification and find that culture, age and intellectual freedom are positively associated with the propensity to diversify successfully. Managerial Summary Organizations where R&D is core to driving competitive advantage face important tradeoffs when hiring researchers. Specifically, diverse combinations of knowledge generate the most impactful discoveries. Yet, coordinating such combinations increasingly requires larger teams as knowledge accumulation causes researchers to specialize in narrower areas. How should organizations achieve the best balance? We argue and show evidence that diversified researchers, individuals routinely criticized for their lack of knowledge depth, are more likely than specialized researchers of similar ability to integrate new knowledge from beyond their domains of expertise to create impactful innovations. Therefore, organizations aiming to create competitive advantage by pushing the boundaries of knowledge should carefully consider the nuanced tradeoffs between specialized and diversified researchers when strategizing about hiring the optimal types of expertise.

Reviewing the Field of External Knowledge Search for Innovation: Theoretical Underpinnings and Future (Re‐)search Directions

“…For example, should firms draw on several specialists or generalists at the interface for interaction with external partners? An emerging stream of “jack‐of‐all‐trades” studies (Lazear, 2004; Nagle and Teodoridis, 2019) might provide fruitful insights. It is also unclear what government mechanisms work to benefit multiple search partners.…”

Attention to Exploration: The Effect of Academic Entrepreneurship on the Production of Scientific Knowledge

“…In science, cognitive diversity often manifests as interdisciplinarity, which refers to the tendency of an individual to integrate perspectives, theories, information, and tools from two or more disciplines (Leahey et al 2017). Recent work suggests that diversified researchers-scientific jacks of all trades-have a more pronounced ability to explore new knowledge domains (Nagle and Teodoridis 2020). They are more likely to become aware of new knowledge and have a superior ability to successfully combine new knowledge with their existing expertise.…”

Long-term effects from early exposure to research: Evidence from the NIH “Yellow Berets”

“…We employ two indices to measure topic diversity. The first follows the index proposed by Nagle and Teodoridis (2020) and Teodoridis et al (2019): one minus the Herfindahl index over all MeSH keywords in the researcher's independent career (hereafter diversification index). The second is the Ellison-Glaeser concentration index (EG index), initially developed to study the geographic concentration of U.S. manufacturing industries (Ellison and Glaeser 1997).…”