the complexity perspective on business and organisations
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The complexity perspective on business
and organisationsNigel Gilbert
Centre for Research on Social SimulationUniversity of Surrey
Guildford, UK
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Principles
• The micro and the macro• Interaction• Emergence• Evolution
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Micro and macro
macro bodies firms sectors nations market
micro organs people firms cities traders
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Simple economics re-thought
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Epstein JM, and R Axtell. Growing artificial societies: social science from the bottom up. Cambridge, MA: MIT Press, 1996.
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Examples of successes• Supply chain management• Traffic modelling• Regulated markets
Electricity, gas, telecom, • Environmental resource management Water, land use
• Innovation and R&D policy
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Interaction and emergence• Simple rules lead to simple (or complicated) phenomena
• Interaction leads to emergence• Variation and selection leads learning
Complex adaptive systems
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Downward causation and immergence
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Explanation• ““If you can’t generate it, you If you can’t generate it, you haven’t explained it”haven’t explained it”
• Path dependency• Point predictions are rarely possible, but
Distributions Ranges Scenarios Attractorsmay be
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Implications• Thinking about the social world and business has been over-reliant on linear models
• The complexity perspective can be enlightening in explaining
Positive feedbacks and network effects Why things rarely repeat themselves exactly
The link between individual action and society
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More information from…
European Social Simulation Association
http://www.essa.eu.org
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