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

Categories as paradigms for comparative cognition

Forming categories is a basic cognitive operation allowing animals to attain concepts, i.e. to represent various classes of objects, natural or artificial, physical or social. Categories can also be formed about the relations holding among these objects, notably similarity and identity. Some of the cognitive processes involved in categorisation will be enumerated. Also, special reference will be made to a much neglected area of research, that of social representations. Here, animals conceive the natural class of their conspecifics as well as the relationships established between them in groups. Two types of social categories were mentioned: (1) intraspecies recognition including recognition of individual conspecifics; and (2) representation of dominance hierarchies and of their transitivity in linear orders

Evaluation of Cognitive Architectures for Cyber-Physical Production Systems

Cyber-physical production systems (CPPS) integrate physical and computational resources due to increasingly available sensors and processing power. This enables the usage of data, to create additional benefit, such as condition monitoring or optimization. These capabilities can lead to cognition, such that the system is able to adapt independently to changing circumstances by learning from additional sensors information. Developing a reference architecture for the design of CPPS and standardization of machines and software interfaces is crucial to enable compatibility of data usage between different machine models and vendors. This paper analysis existing reference architecture regarding their cognitive abilities, based on requirements that are derived from three different use cases. The results from the evaluation of the reference architectures, which include two instances that stem from the field of cognitive science, reveal a gap in the applicability of the architectures regarding the generalizability and the level of abstraction. While reference architectures from the field of automation are suitable to address use case specific requirements, and do not address the general requirements, especially w.r.t. adaptability, the examples from the field of cognitive science are well usable to reach a high level of adaption and cognition. It is desirable to merge advantages of both classes of architectures to address challenges in the field of CPPS in Industrie 4.0

The NHS plan: an economic perspective

The NHS Plan, published in July 2000, presented an ambitious blueprint for the transformation of the way the NHS delivers health care. The backdrop to the Plan is the substantial increase in resources for the NHS promised for the next 5 years. At the heart of the Plan is the aim of ensuring these resources are used effectively to provide a health service “designed around the patient”. After reviewing the perceived flaws in the current system and dismissing the notion of alternative systems of health care funding, the main part of the Plan outlines the strategy for tackling the shortcomings. The discussion is wide-ranging and includes not only those areas we would expect to see covered, such as the interface between health and social care and the performance management system, but also issues such as investment in infrastructure, the relationships between the NHS and the private sector and key personnel issues such as the supply of health care professionals and their contractual arrangements. This discussion paper summarises the main elements of the Plan before focusing more closely on seven key themes on which economic analysis has a distinctive insight to offer – investment, information, labour markets, the independent sector, waiting times, performance management, and patient and carer responses. Some of the preconditions for success of the Plan are outlined and gaps in the available evidence to support various aspects of the Plan are highlighted. Our conclusions suggest that there is reason to be optimistic that the Plan will deliver many of its lofty aspirations if two key conditions are met. First, that front-line staff are on board and have the resources and the will to help implement the Plan; and second, that political expediency and the desire to achieve short-term goals does not drive out the commitment to the long-term aims for the NHS.The NHS Plan

Security models for trusting network appliances

A significant characteristic of pervasive computing is the need for secure interactions between highly mobile entities and the services in their environment. Moreover,these decentralised systems are also characterised by partial views over the state of the global environment, implying that we cannot guarantee verification of the properties of the mobile entity entering an unfamiliar domain. Secure in this context encompasses both the need for cryptographic security and the need for trust, on the part of both parties, that the interaction is functioning as expected. In this paper we make a broad assumption that trust and cryptographic security can be considered as orthogonal concerns (i.e. cryptographic measures do not ensure transmission of correct information). We assume the existence of reliable encryption techniques and focus on the characteristics of a model that supports the management of the trust relationships between two devices during ad-hoc interactions

The Academic Profession: changing roles, terms and definitions

A critical review of a recent report by the Higher Education Funding Council for England on ‘workforce trends’ from the perspectives of the Changing Academic Profession project

Natio et gens: Venice biennale 2009

The following is an informal reflection on the changing place of nationality and national consciousness in cultural life with reference to last year’s Biennale. Having drawn tentative inferences regarding the roles of these, we offer a selective review of what appear to us to be the most memorable national representations. These in turn suggest a paradoxical benefit which an awareness of localised histories may bring to artistic production

Fractals in the Nervous System: conceptual Implications for Theoretical Neuroscience

This essay is presented with two principal objectives in mind: first, to document the prevalence of fractals at all levels of the nervous system, giving credence to the notion of their functional relevance; and second, to draw attention to the as yet still unresolved issues of the detailed relationships among power law scaling, self-similarity, and self-organized criticality. As regards criticality, I will document that it has become a pivotal reference point in Neurodynamics. Furthermore, I will emphasize the not yet fully appreciated significance of allometric control processes. For dynamic fractals, I will assemble reasons for attributing to them the capacity to adapt task execution to contextual changes across a range of scales. The final Section consists of general reflections on the implications of the reviewed data, and identifies what appear to be issues of fundamental importance for future research in the rapidly evolving topic of this review