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Knowledge GovernanceProcesses and Perspectives$
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Nicolai J. Foss and Snejina Michailova

Print publication date: 2009

Print ISBN-13: 9780199235926

Published to Oxford Scholarship Online: January 2009

DOI: 10.1093/acprof:oso/9780199235926.001.0001

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The Governance of Explorative Knowledge Production

The Governance of Explorative Knowledge Production

(p.138) 6 The Governance of Explorative Knowledge Production
Knowledge Governance

Margit Osterloh

Antoinette Weibel

Oxford University Press

The generation of new knowledge is crucial for a firm's competitive advantage. This chapter analyses explorative knowledge production in teams as a social dilemma. Such social dilemmas can to some extent be solved by transactional solutions, such as activating the shadow of the future or selective incentives. But transformational solutions are more important. Employee's intrinsic initiative to participate in knowledge exploration is crowded-out by certain high-powered incentives and unfriendly monitoring. It is crowded-in by low-powered incentives, friendly monitoring, communication, and institutional framing. The chapter concludes that there exist convincing ideas of how to govern explorative knowledge production which should be tested empirically.

Keywords:   exploration, exploitation, social dilemma, extrinsic motivation, intrinsic motivation, crowding-out, crowding-in

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