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  4. Distributed decision‐making in the shadow of hierarchy: How hierarchical similarity biases idea evaluation
 
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Distributed decision‐making in the shadow of hierarchy: How hierarchical similarity biases idea evaluation

Publikationstyp
Journal Article
Date Issued
2023
Sprache
English
Author(s)
Schweisfurth, Tim  orcid-logo
Schöttl, Claus P.  
Raasch, Christina  
Zaggl, Michael A.  
Institut
Organizational Design and Collaboration Engineering W-13  
TORE-URI
http://hdl.handle.net/11420/15001
Journal
Strategic management journal  
Volume
44
Issue
9
Start Page
2255
End Page
2282
Citation
Strategic Management Journal 44 (9): 2255-2282 (2023-09)
Publisher DOI
10.1002/smj.3497
Scopus ID
2-s2.0-85151916022
Companies are increasingly opening up decision-making, involving employees on all levels in distributed – and purportedly ‘hierarchy-free’ – decision processes. We examine how hierarchy reaches into such ‘democratized’ systems, arguing that it is a source of homophily that biases idea evaluation decisions. Using a data set from internal crowdfunding at one of the world's largest industrial manufacturers, we show that idea evaluators overvalue hierarchically similar others’ ideas. Competition in the form of lateral closeness dampens this bias, whereas uncertainty in the form of novelty amplifies this bias. We contribute to the literatures on decision biases in centralized vs. distributed innovation and on structural similarity as a driver of employee behaviors.
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