Abstract:
Organizational search processes oscillate between exploration and exploitation strategies. While the aggregated search behavior of groups differs from that of individual members tackling the same problem, the reasons for this discrepancy remain ambiguous. Past comparisons of individual and group search behaviors have produced conflicting results, with some studies suggesting groups are more exploitative and others indicating they are more explorative. Thus, to understand organizational behavior, we need to resolve the ambiguity about the dynamics of groups’ search process, particularly concerning the effects of diversity of approaches and imitation. In an online experiment, we compared the search behavior and performance of 253 individuals and 253 groups (N = 1265) across simple and complex fitness landscapes. We find that both groups and individuals show an initial exploratory behavior, followed by exploitative behavior, but groups demonstrate a stronger shift from exploration to exploitation which leads to better performance for both simple and complex problems. Two main theoretical mechanisms drive this: an inclination towards diversifying approaches and imitation. Both mechanisms could coexist in groups displaying balanced behavior, which we argue is attributed to aligning group rewards to shared objectives rather than individual performance. This balance between the diversity of approaches and imitations fosters performance. The temporal dynamics in group processes suggest that effectively managing these social influences can boost problem-solving and innovation by achieving a division of labor.

Keywords: group dynamics, decision-making, problem-solving, organizational search, online experiment