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Lecture 9

ENT 3003 Lecture Notes - Lecture 9: Heterophily, Homophily, Icloud

Course Code
ENT 3003
Christopher Garrett Pryor

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Module 9 (Mar. 18)
Behavior Diversity & Your FIrm:
A Very Deep Glipse- The Last Resource: Capabilities as firms’ DNA
Here’s as simple way of thinking about and managing one of the most important causes
of superior opportunity identification and exploitation
o Routines: Patterns of behavior that are shared by organizational members
o When you should Outsource versus Hire
Capabilities: High- order routines that are directly associated with creating customer
So, where do routines come from?
o Entrepreneur habits
o Immigration (bringing new people into the firm)
o Laws
o Values
o Competition
o Stuff just happens
Maximize your Opportunities (from script)
Following the Script I Routines and Invididuals
Social Structure (i.e. iCloud)
o Signification Scripts
Patterns of behavior used to perceive and communicate information
YIELDS Opportunity Identification
o Legitimation Scripts
Patterns of behavior used to evaluate and compare information
YIELDS Opportunity Evaluation
o Domination Scripts
Patterns of behavior used to acquire and deploy resources
YIELDS Opportunity Exploitation
How do you get people to follow your script?
o HR tactics
o Organizational rewards
o Peer pressure
o Modeling the behavior
Script = individual level
Routine/Capability = organizational level
Consequences of Script Diversity
o Homophily (gene pools with not a lot of diversity)
YIELDS Opportunity Exploitation
o Heterophily (gene pools with a lot of diversity)
YIELDS Opportunity Exploration
What happens to scripts over time?
o Goes from heterophily to homophily
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