The role of transactive memory in the formation of organizational routines

Abstract

This study addresses how individuals combine their diverse skills during the process of forming organizational routines. Our explanation centers on the development of transactive memory, which forms during the initial performances of a routine, as actors search for (and subsequently remember) other actors with the capabilities needed to complete a routine. We present an agent-based model to analyze how the distribution and availability of individual capabilities influence the set of actors involved in performing routines, initially and over time. The model shows that even when the pattern of actions stays the same, the pattern of actors involved in performing an organizational routine can change continuously. Variations in the efficiency of routine formation that are inexplicable in terms of action sequences may be readily explained when we examine actor sequences. Transactive memory contributes to the theory of organizational routines by serving as a bridge between individuals’ skills and collective capabilities.