From techno-scientific grammar to organizational syntax. New production insights on the nature of the firm

The paper aims at providing the conceptual building blocks of a theory of the firm which addresses its "ontological questions" (existence,boundaries and organization) by placing production at its core. We draw on engineering for a more accurate description of the production process itself, highlighting its inner complexity and potentially chaotic nature, and on computational linguistics for a production-based account of the nature of economic agents and of the mechanisms through which they build ordered production sets. In so doing, we give a "more appropriate" production basis to the crucial issues of how firm's boundaries are set, how its organisational structure is defined, and how it changes over time. In particular, we show how economic agents select some tasks to be performed internally, while leaving some other to external suppliers, on the basis of criteria based on both the different degrees of internal congruence of the tasks to be performed (i.e. the internal environment), and on the outer relationships carried out with other agents (i.e. the external environment)

Simplistic vs. Complex Organization: Markets, Hierarchies, and Networks in an 'Organizational Triangle'

Transaction cost economics explains organizations in a simplistic ‘market-vs.-hierarchy’ dichotomy. In this view, complex real-world coordination forms are simply considered ‘hybrids’ of those ‘pure’ and ideal forms, thus being located on a one-dimensional ‘line’ between them. This ‘organizational dichotomy’ is mainly based on relative marginal transaction costs, relative lengths of value-added chains, and ‘rational choice’ of coordination form. The present paper, in contrast, argues that pure ‘market’ and ‘hierarchy’, even including their potential hybrids, are a theoretically untenable and empirically void set. Coordination forms, it is argued, have to be conceptualized in a fundamentally different way. A relevant ‘organizational space’ must reflect the dimensions of a complex world such as dilemma-prone direct interdependence, resulting in strong strategic uncertainty, mutual externalities, collectivities, and subsequent emergent process. This, in turn, will lead either to (1) informally institutionalized, problem-solving cooperation (the instrumental dimension of the institution) or (2) mutual blockage, lock-in on an inferior path, or power- and status-based market and hierarchy failure (the ceremonial dimension of the institution). This paper establishes emergent instrumental institutionalized cooperation as a genuine organizational dimension which generates a third ‘attractor’ besides ‘market’ and ‘hierarchy’, i.e., informal network. In this way, an ‘organizational triangle’ can be generated which may serve as a more relevant heuristic device for empirical organizational research. Its ideal corners and some ideal hybrids on its edges (such as ideal clusters and ideal hub&spoke networks) still remain empirically void, but its inner space becomes empirically relevant and accessible. The ‘Organizational Triangle’ is tentatively applied (besides casual reference to corporate behavior that has lead to the current financial meltdown), by way of a set of criteria for instrumental problem-solving and a simple formal algorithm, to the cases of the supplier network of ‘DaimlerChrysler US International’ at Tuscaloosa, AL, the open-source network Linux, and the web-platforms Wikipedia and ‘Open-Source Car’. It is considered to properly reflect what is generally theorized in evolutionary-institutional economics of organizations and the firm and might offer some insight for the coming industrial reconstructions of the car and other industries.Market vs. Hierarchy; Transaction Costs; Complexity; Institutionalization; Network Formation; Hub&Spoke Supplier Networks; Open-Source Networks

Civil Society Actors as Catalysts for Transnational Social Learning

This article explores the roles of transnational civil society organizations and networks in transnational social learning. It begins with an investigation into social learning within problem domains and into the ways in which such domain learning builds perspectives and capacities for effective action among domain organizations and institutions. It suggests that domain learning involves problem definition, direction setting, implementation of collective action, and performance monitoring. Transnational civil society actors appear to take five roles in domain learning: (1) identifying issues, (2) facilitating voice of marginalized stakeholders, (3) amplifying the importance of issues, (4) building bridges among diverse stakeholders, and (5) monitoring and assessing solutions. The paper then explores the circumstances in which transnational civil society actors can be expected to make special contributions in important problem domains in the future.This publication is Hauser Center Working Paper No. 28. The Hauser Center Working Paper Series was launched during the summer of 2000. The Series enables the Hauser Center to share with a broad audience important works-in-progress written by Hauser Center scholars and researchers

A list of websites and reading materials on strategy & complexity

The list has been developed based on a broad interpretation of the subject of ‘strategy & complexity’. Resources will therefore more, or less directly relate to ‘being strategic in the face of complexity’. Many of the articles and reports referred to in the attached bibliography can be accessed and downloaded from the internet. Most books can be found at amazon.com where you will often find a number of book reviews and summaries as well. Sometimes, reading the reviews will suffice and will give you the essence of the contents of the book after which you do not need to buy it. If the book looks interesting enough, buying options are easy

Spatio-Temporal Patterns act as Computational Mechanisms governing Emergent behavior in Robotic Swarms

open access articleOur goal is to control a robotic swarm without removing its swarm-like nature. In other words, we aim to intrinsically control a robotic swarm emergent behavior. Past attempts at governing robotic swarms or their selfcoordinating emergent behavior, has proven ineffective, largely due to the swarm’s inherent randomness (making it difficult to predict) and utter simplicity (they lack a leader, any kind of centralized control, long-range communication, global knowledge, complex internal models and only operate on a couple of basic, reactive rules). The main problem is that emergent phenomena itself is not fully understood, despite being at the forefront of current research. Research into 1D and 2D Cellular Automata has uncovered a hidden computational layer which bridges the micromacro gap (i.e., how individual behaviors at the micro-level influence the global behaviors on the macro-level). We hypothesize that there also lie embedded computational mechanisms at the heart of a robotic swarm’s emergent behavior. To test this theory, we proceeded to simulate robotic swarms (represented as both particles and dynamic networks) and then designed local rules to induce various types of intelligent, emergent behaviors (as well as designing genetic algorithms to evolve robotic swarms with emergent behaviors). Finally, we analysed these robotic swarms and successfully confirmed our hypothesis; analyzing their developments and interactions over time revealed various forms of embedded spatiotemporal patterns which store, propagate and parallel process information across the swarm according to some internal, collision-based logic (solving the mystery of how simple robots are able to self-coordinate and allow global behaviors to emerge across the swarm)

Collaborative Approaches to the Sociopolitical Environment: The Emergence of Issues Management Alliances

Increasing turbulence in the sociopolitical environment is reshaping the environmental management strategies employed by business and other institutions. New expectations of the role of business in society, changing demographics, critical social problems such as spiraling health care costs, educational reform and child care, and environmental degradation are posing serious challenges to business organizations and society as a whole. Private, public, and independent sector institutions have initiated a wide variety of collaborative, multi-organizational approaches to issues management which we describe as issues management alliances (IMAs). Known by a myriad of labels such as public-private partnerships, innovating organizations, community development corporations, and self-regulatory agencies, issues management alliances appear to be an adaptive mode of response to a turbulent sociopolitical environment: specifically, they address complex issues and problems that are not being managed adequately by organizations acting alone. To date, however, our understanding of issues management alliances has been fragmented. The primary purpose of this paper is to foster a more systematic appreciation of this robust phenomenon. First, we provide a definition of issues management alliance and organize the disparate examples of IMAs using Cummings\u27 (1984) model of transorganizational systems. Second, we discuss the necessary conditions for the emergence and maintenance of this mode of response in terms of their effectiveness and differential efficiency. Finally, we conclude with a discussion of the implications of this phenomenon

Absorptive Capacity: Antecedents, Models and Outcomes

This chapter focuses on the gap between the speed of proliferation of theoretical and empirical contributions and the speed of accumulation of the acquired scientific knowledge regarding absorptive capacity. To contribute to narrowing this gap, we will in particular review the conceptual developments of the absorptive capacity construct. Based on the seminal contributions of Cohen & Levinthal (1989, 1990) we will provide a brief overview of the various conceptual attributes of this construct, like the definition, antecedents and consequences, and levels of analysis involved. Next, we will assess the refinements, extensions and reconceptualizations of this construct in the literature. Furthermore, from the perspective of viewing models as mediating instruments between theory and empirical phenomena (Morgan and Morrison, 1999), we will analyze efforts to build conceptual models. Finally, we will address the progress made, select key problems and we will formulate future research directions to improve the multilevel and transdisciplinary characteristics of absorptive capacity.innovation;absorptive capacity;knowledge

Performance measurement: questions for tomorrow

Ever since Johnson and Kaplan (1987) published their seminal article performance measurement gained increasing popularity both in practice and research with over 3600 articles between 1994 and 1996. A précis of the literature on global and business trends predicts that the world is heading towards a networking era dominated by global autopoietic networks. A systematic review of the performance measurement literature concludes that although historically the performance measurement literature had tracked the global business trends our current state of knowledge on performance measurement is not complete and a number of fundamental questions remain unanswered, particularly in the context of future trends

The Shift of Techno-Economic Paradigm and Its Effects on Regional Disparities

During the 1900?s we first lived thorough shift from the agricultural era to the industrial era. Nowadays, we are in the middle of the shift from the industrial era to the information era. The new era has several definitions based on different theories. At the same time, we talk about information society (knowledge is forming the main productivity factor), network society (new communication technology is connecting people), post-industrial society (change in production paradigm), service society (emphasis on services instead of production), expert society (increasing importance of skilled people and experts), learning society (learning ability becomes a critical factor), postmodern society (modernisation leads to individualism), innovation society (innovation is the driving force of economic growth), risk society (risks and uncertainty are increasing in society) and consumer society (consumer needs steer economic activities) These definitions reflect the different points of view of assessing the development we have been experiencing during the recent years. Each of these definitions emphasises different phenomena embedded in the change of present techno-economic paradigm, and each of them builds a basis for the assessment of the requirements of the changing environment. Although the definitions and theories describing the present change are mostly very abstract, some concrete indicators can be determined to describe the phase of the trajectory in the changing process of the society. The changes in the society should be assessed at regional level, especially as regional dimension is gaining importance in the development policies at the European level. In the regional context the question to rise first is, how the shift of techno-economic paradigm appears in the regional level and what its effect is on emerging regional disparities. Secondly, is it possible to evaluate, how the region?s adaptability to the shift of techno-economic paradigm correlates to its economical success. In the current study, an indicator is created to describe a regions? adaptability to the shift of techno-economic paradigm. The variables included in the adaptability indicator are derived from the theories describing the present society. The Finnish urban regions are used as the source of empirical data in this study. All Finnish urban regions are assessed based on the adaptability indicator and further on, the values of the adaptability indicator are compared to the respective values of indicators describing the economic success of the same regions.. Admittedly, the adaptability indicator does not describe the studied phenomenon completely, it might even be considered provocative. However, it gives some interesting results about the different kinds of development trajectories of urban regions, and gives valuable information for regional decision-making.