English

Controlling replication via the belief system in multi-unit organizations

General Economics 2022-06-09 v1 Economics

Abstract

Multi-unit organizations such as retail chains are interested in the diffusion of best practices throughout all divisions. However, the strict guidelines or incentive schemes may not always be effective in promoting the replication of a practice. In this paper we analyze how the individual belief systems, namely the desire of individuals to conform, may be used to spread knowledge between departments. We develop an agent-based simulation of an organization with different network structures between divisions through which the knowledge is shared, and observe the resulting synchrony. We find that the effect of network structures on the diffusion of knowledge depends on the interdependencies between divisions, and that peer-to-peer exchange of information is more effective in reaching synchrony than unilateral sharing of knowledge from one division. Moreover, we find that centralized network structures lead to lower performance in organizations.

Keywords

Cite

@article{arxiv.2206.03786,
  title  = {Controlling replication via the belief system in multi-unit organizations},
  author = {Ravshanbek Khodzhimatov and Stephan Leitner and Friederike Wall},
  journal= {arXiv preprint arXiv:2206.03786},
  year   = {2022}
}

Comments

Submitted to Social Simulation Conference 2022. arXiv admin note: text overlap with arXiv:2104.05993

R2 v1 2026-06-24T11:43:16.581Z