Study Suggests Low-Performing Organisations Rely More on Outside Sources of Knowledge

People working in low-performing organisations are more likely to seek ideas, expertise, and new practices from outside their own workplace, according to a new study examining how organisations respond to performance feedback. In contrast, high-performing organisations are more likely to rely on internal collaboration and existing routines when solving problems or improving performance. The findings suggest that organisational success or failure shapes where people search for knowledge, with struggling organisations looking outward for innovation while stronger performers focus inward on refinement and stability.

The research was led by Taek Kyu Kim from the University of Exeter and tested these ideas using data from public schools in New York City. Researchers analysed how schools reacted to academic performance feedback and whether this influenced collaboration patterns among teachers. The study found that schools receiving lower performance grades were significantly more likely to encourage staff to collaborate with teachers from other schools. By comparison, schools with stronger performance ratings focused more heavily on collaboration within their own institutions and showed less interest in seeking expertise across organisational boundaries.

The researchers examined participation in the Learning Partners Program, a collaboration initiative that grouped between five and seven schools into networks so educators could learn from exemplary schools with recognised strengths in particular areas. These areas included specialised support for students with disabilities and other teaching practices linked to improved academic outcomes. The analysis showed that schools with lower performance ratings were much more likely to participate in the programme, demonstrating a willingness to search beyond their own organisations for solutions to performance challenges.

According to Dr Kim, the findings reveal that organisational search patterns are shaped by performance signals rather than by a universal tendency to solve problems internally. Teachers in lower-performing schools reported greater opportunities to work productively with colleagues from other schools, while teachers in higher-performing schools experienced stronger collaboration within their own institutions. The study argues that low-performing organisations may benefit more from directly pursuing outside knowledge instead of relying first on local problem-solving approaches that could consume valuable time and resources without generating meaningful innovation.

The research also challenges the common assumption that organisations should always begin by looking internally before searching elsewhere for solutions. For organisations already struggling with poor performance, the researchers argue that local search may reinforce ineffective routines and delay necessary change. Looking outside organisational boundaries, however, may expose staff and managers to new ideas, practices, and strategies that are more capable of addressing persistent performance problems. The study suggests this outward search can be especially valuable in organisations that are more open to risk-taking and experimentation.

At the same time, the researchers note that high-performing organisations may become vulnerable to what is known as a “competency trap”. Positive performance feedback can reinforce confidence in existing routines, narrowing attention towards internal operations and reducing awareness of external changes. While this inward focus can create efficiency and stability, it may also make successful organisations less adaptable over time. The study concludes that performance feedback acts as a powerful mechanism directing managerial attention, pushing struggling organisations to search outward for improvement while encouraging successful organisations to deepen reliance on established internal practices.

More information: Taek Kyu Kim et al, Beyond problemistic search: a contingency perspective on organizational response to performance feedback, Public Management Review. DOI: 10.1080/14719037.2026.2645327

Journal information: Public Management Review Provided by University of Exeter

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