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Cognitive Diversity of Top Management Teams as a Competence-Based Driver of Innovation Capability. How to Decode Its Contribution Comprehensively

, , , and . Strategies and Communications for Innovations: An Integrative Management View for Companies and Networks, Springer, Heidelberg, (2011)
DOI: 10.1007/978-3-642-17223-6_4

Abstract

In order to gain and maintain innovation capability, organizations have to adapt their profiles and processes to perpetually changing environmental conditions. However, the resulting need for a high degree of flexibility, which includes avoiding an information undersupply by being stable but inflexible, entails the risk of an information overload. Therefore, a balance between an organization’s flexibility and its stability is needed. Top Management Team (TMT) cognitive diversity seems to constitute a promising resource, which under certain circumstances can be turned into an organizational competence, allowing for a high but stable level of organizational flexibility. Employing insights from complexity theory and adopting agent-based simulation is suggested as a further research method in order to deduce underlying causal inter-relations.

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