Multilevel Research How Dialectic Tensions and CoEvolutionary Interdependences

Multilevel Research: How Dialectic Tensions and Co-Evolutionary Interdependences Drive Long-Term Learning in Organizational Fields Andreas Schwab Iowa State University Presentation Organization Science Winter Conference February 9, 2013

Research Study Research Focus – Develop theory-based framework to explain divergence in learning outcomes as organizations within an industry to implement the same fundamental innovation. – Perform initial empirical tests to support this framework Industry-level convergence of learning outcomes (= emergence of norms) (Haunschild, Miner & Schwab, 2003) • Population-level learning (Miner & Haunschild, 1995, Greve, 1996; Abrahamson, 1991) • Basic evolutionary theory (Aldrich & Ruef, 2006, Nelson & Winter, 1982) • Classical institutional theory (Di. Maggio & Powell, 1983; Tolbert & Zucker, 1983)

Farm-Team System • Branch Rickey, manager of the St. Louis Cardinals, invented the “farm-team system” around 1923 in the U. S. baseball industry • Farm-team system connects a major league club with a network of minor leagues clubs for the internal development of player talent

Methodology Archival study with rich quanititative and qualitative data Analyses: • Graphs of variability patterns • Simple split-group comparisons of SD differences – Variability comparison between earlier and later time periods – Robust SD tests (Brown & Forsythe, 1974) – Coefficient of variation (Allison, 1978; Bedeian & Mossholder, 2000) • Multi-level mixed effect regression model – First, estimate fixed effects for all variables in the causal model – Second, estimate random effect of farm-team system for earlier and later time period.

Farm-Team System Size Variability

Farm-Team Performance

Framework Hypothesis: Increasing industry-level innovation implementation experience leads to increasing variability of learning outcomes. Industry Implementation Learning from Direct Experience Innovation Adoption Vicarious Learning Outcome Variability Innovation Performance Impact Innovation Feature Learning and Industry Norms

Where to go from here? Theory implications What do we really know about long-term populationlevel learning processes? • Multilevel co-evolutionary learning processes • Dynamic interactions between learning processes at various levels of analysis • Are they conceptualized as dialectic tensions? • Openness to promote innovation vs. closedness to protect and generate unique firm-level knowledge • Conform to industry norms vs. adjust to unique firmlevel conditions

Where to go from here? Methodological Implications • Multilevel industry case studies with stronger process orientation • Behavioral pattern recognition and focus on learning outcomes beyond performance • Parsimony?

Multilevel Research: How Dialectic Tensions and Co-Evolutionary Interdependences Drive Long-Term Learning in Organizational Fields Andreas Schwab Iowa State University Presentation Organization Science Winter Conference February 9, 2013