Iterative problem solving in teams: insights from an agent-based simulation

Purpose – This paper aims to evaluate the effect of knowledge overlap, search width and problem complexity on the quality of problem-solving in teams that use the majority rule to aggregate heterogeneous knowledge of the team members. Design/methodology/approach – The paper uses agent-based simulations to model iterative problem-solving by teams. The simulation results are analyzed using linear regressions to show the interactions among the variables in the model. Findings – We find that knowledge overlap, search width and problem complexity interact to jointly impact the optimal solution in the iterative problem-solving process of teams using majority rule decisions. Interestingly, we find that more complex problems require less knowledge overlap. Search width and knowledge overlap act as substitutes, weakening each other’s performance effects. Research limitations/implications – The results suggest that team performance in iterative problem-solving depends on interactions among knowledge overlap, search width and problem complexity which need to be jointly examined to reflect realistic team dynamics. Practical implications – The findings suggest that team formation and the choice of a search strategy should be aligned with problem complexity. Originality/value – This paper contributes to the literature on problem-solving in teams. It is the first attempt to use agent-based simulations to model complex problem-solving in teams. The results have both theoretical and practical significance.