Information characteristics as constraints to innovation

The characteristics of information inhibit organizational learning cycles which are the processes necessary to develop intelligent organizations. One major thesis is that information is subject to limited appropriability since its exchange is irreversible, its performance is uncertain, and its use does not limit further use. Inappropriability encourages the retention of asymmetric information. Unfortunately, the organizational learning cycle also generates asymmetric information. Asymmetric information facilitates opportunistic behavior which reduces the incentive to innovate, although the disincentives may be mitigated by interpersonal trust. Effective intelligent organizations need (1) to design organizational and information systems based on information characteristics and (2) to develop interpersonal trust.<
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