Knowledge Markets and Collective Learning

Abstract

In this chapter, the authors argue that “Knowledge Markets” might be used as a term to describe how individuals can be engaged in a democratic process where their competence, background, and personal information resources are mobilized in full in a broad and non-biased process. The contribution of each individual is aggregated and averaged in a way the authors believe will yield more accurate results, personal involvement, and learning than traditional approaches to group efforts. Recent work on crowdsourcing (Surowiecki, 2004) highlights the strength of a collection of individuals over traditional organizational entities. This contribution will extend these principles to fit into an organizational setting. The chapter discusses how knowledge markets can create an arena for change. Moreover, it shows that if certain principles are observed desired effects could be achieved for relatively limited groups. The authors extend this to propose theories about collective learning and performance improvement. They further describe how the principles defined can help to meet some fundamental challenges related to petroleum activities such as drilling. The authors think that the Knowledge Market approach can serve as a model for designing IO arenas to increase collaboration, to improve shared problem solving, and make collective learning more effective. In all kinds of operations performance improvement is strongly related to learning. It is a cognitive ability that must be exercised and maintained through motivation, discipline, and other stimuli. Collective learning applies to the effort whereby a group of people detect threats or opportunities and learns how to take early advantage of this in order to assure change.