Complexity theory and strategy

Complexity Theory and Strategy

The use of Complexity Theory has been quite fruitful in the field of strategic management and organizational studies These areas of strategy and organizational studies are sometimes called 'Complexity strategy' or 'Complex Adaptive Organization' on the internet or in popular press. Broadly speaking, complexity theory is used in these domains to understand how organizations or firms adapt to their environments using relatively simple strategies. In fact, the very roots of the study of strategy and organizations show the mark of complexity-style thinking:

For instance, Herbert Simon's definition of computational complexity, Karl Weick's ideas of loose coupling, Burns and Stalker's contract between organic and mechanistic structures, Charles Perrow's conception of the disasters in complex organizations, and March's contrast between exploration and exploitation all show either a direct or indirect influence of complexity theory.

More recently, the work of scholars and their research groups has added greatly to our understanding of how complexity theory can be used to understand strategy and organizations. The work of Dan Levinthal, Jan Rivkin, Nicolaj Siggelkow, Kathleen Eisenhardt, Phil Anderson and their colleagues has been recently influential.