A Dynamic Ability-Based View of the Organization
International Journal of Knowledge Management
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Humans and organizations have limitations of computational capacity and information management. Such constraints are synonymous with bounded rationality. Therefore, in order to extend the human and organizational boundaries to more advanced models of cognition, this research proposes concepts of cognitive machines in organizations. From a micro point of view, what makes this research distinct is that, beyond people, it includes in the list of participants of the organization the cognitive machines. From a macro point of view, this paper relies on the premise that cognitive machines can improve the cognitive abilities of the organization. From such perspectives, it presents rationale and principles of a class of cognitive machines with capabilities to carry out complex cognitive tasks in organizations. It also introduces analyses of the cognitive machines in organizations through theories of bounded rationality, economic decision-making, and conflict resolution. The analyses indicate that these machines can solve or reduce intra-individual and group dysfunctional conflicts which arise from decision-making processes in the organization, and thus they can improve the degree of organizational cognition. From all these backgrounds, this research outlines implications of cognitive machines for organizations.