When distributed innovation backfires: modeling knowledge dynamics in judicial organizations

Drawing on a comprehensive body of qualitative empirical data, this study investigates the dynamics of knowledge assets within the Italian judicial organization. Through coding and modeling techniques, we develop (a) a hierarchical objective tree mapping critical knowledge assets and related performance objectives, and (b) a feedback-loop systemic model using the Knowledge Asset Dynamic Value Map (KADVM) method. Findings highlight the existence of dysfunctional feedback loops between two primary purposes of knowledge dynamics in the judiciary: efficiency at the local court level and national-level uniformity in practices. These tensions, rooted in conflicting organizational goals and rules, significantly affect knowledge flows, undermining the effective development and deployment of critical knowledge assets. This study reveals how unbalanced incentives and informal competitive mechanisms can distort knowledge-sharing in a decentralized, knowledge-intensive public organization. Our analysis further emphasizes the counterproductive interactions between local innovation, vertical organization, and horizontal dissemination in a formalized yet fragmented environment aimed at delivering public value. We identify intervention areas to realign knowledge dynamics with performance goals and discuss broader implications for policymakers and public managers. This research also showcases the utility of the KADVM approach for understanding complex knowledge systems in public sector contexts, which are traditionally underexplored in KM literature.