Complexity theory represents a new and innovative way to understand the complex environment an individual exists in. It offers valuable approaches to self organisation and organisation structure. With newly developed research, more and more concepts are emerging from this fledgling science offering increased possibilities to tackle difficult issues as they pertain to business and business management.
Businesses constantly face the need to update, the need to innovate. With these businesses come its leaders who feel the same bombardment at all levels. The speed at which change arises causes the lifecycles of typical businesses and the products they sell to last just a short time unless they learn to successfully adapt. As Keen (2000), explains: "Change is seen as necessary merely to survive; transformation is required to thrive and a constant need for reinvention is needed to secure long-term success (Keene, 2000, p. 15). In order to meet those demands, sometimes businesses may use a method or theory to help them.
Complexity science is a recently examined field of study. It is fast-growing, in use across all dimensions of business. Complexity science is a term typically used to signify an increasing body of interdisciplinary studies about the structure, behaviour and dynamics of change in a particular category of complex systems known as Complex Adaptive Systems (CAS) (Wegener, 2010, p. 225). CASs are open, evolutionary systems in which the components are dynamic, self-organizing, and strongly interrelated. (Sanders, 2008, p. 275)
Complexity science and complexity theory offers one, in this case a business, a chance to view issues within several perspectives. It offers examination of the micro as well as the macro issues and analyzing how they are interdependent. Complexity science offers a more realistic view of problems and assumes they cannot simply be solved through classic approaches such as the scientific method. Just like how reality is filled with several integrated and complex methods, complex theory encompasses models, conceptual frameworks, and theories that aid in making the illogical seem logical.
Adaptation at times needs complex thinking. To adapt means to face the constant challenge of continual innovation and creativity. These challenges lead to expectations that may exceed an individual's capabilities. Successful leaders learn to recognize what it takes to deliver such commitments through supporting others and effective communication. Businesses work well as a unit where a team is not just unified, but also able to agree and communicate to achieve goals and objectives.
A successful leader recognises the significance of good relations amongst the people of his/her company/business in achieving success in an ever changing and difficult landscape.This landscape demands to overcome any fears and move forward to meet the uncertainty that awaits. To continue to hold on to the belief of cause and effect proves unwise.The structures of organisations and businesses reflect a machine that needs the use of several intertwining and interchanging components in order to run. With this kind of mentality, the drive is towards an all-encompassing general theory.
Keene states: "The key message of the theory of complexity is that our world is not only subjective, but it is the result of our interactions with each other and with our environment." (Keene, 2000, p. 16). In order to understand the workings behind complexity theory, it is important to view complex interactions as sourced from a simple beginning using simple rules.. Keene offers an explanation of a complex system using the example of the flow of a river. "Water is subject to gravity and regardless of the obstacles in its path, it continues towards the ocean, its ultimate destination. Water is not restricted to one solution in order to overcome obstacles. If it was, we would not have known the beauty of the Grand Canyon" (Keene, 2000, p. 16). Transferring this principle and concept to organisations the lesson comes to be viewing what constitutes reality and realization of how individuals limit themselves to the endless possibilities available. The simplicity derived from the system can be compared to the values and guiding principles within an organisation.
As one applies ideas from complexity theory to organizations, one must identify key concepts. Concept of intentionality for instance, states that conciousness is intentional and directed toward an inner object. Concepts such as these help in understanding "sameness" and "participation," actions that fuel interaction within an organisation.As Griffin, Shaw, & Stacey state from the work of Nonaka and Takeuchi:
"In a strict sense, knowledge is created only by individuals. The organization supports creative individuals or provides contexts for them to create knowledge. Organizational knowledge creation, therefore, should be understood as a process that "organizationally" amplifies the knowledge created by individuals and crystallises it as a part of the knowledge network of the organization. The process takes place within an expanding "community of interaction," which crosses intra- and interorganizational levels and boundaries" (Griffin, Shaw, & Stacey, 1999, p. 298-299) .
Complex organizations surprisingly exhibit, nonlinear behavior. Mergers and Acquisitions for instance involves an intricate array of communications and actions that result in a company/organization/business absorbing another or a legal consolidation of two companies into one. Although scientists specializing in organizations researched and analyzed complex organizations for several years, an expanding set of conceptual and computational tools makes possible new methods to modeling nonlinear interactions between and within organizations. Anderson (1999) explains, "Complex adaptive system models represent a genuinely new way of simplifying the complex. They are characterized by four key elements: agents with schemata, self-organizing networks sustained by importing energy, coevolution to the edge of chaos, and system evolution based on recombination." (Anderson, 1999, p. 116)
The more recent kinds of models that include the concept of intentionality from complexity theory use the elements described before to enhance organization science through the merging of empirical observation with computational agent-based simulation. Using these new methods lead to strategic direction within organisations as well as increase emphasis and focus on building systems that allow for rapid evolution of adaptive solutions.Applying complex adaptive systems models to strategic management leads to an emphasis on building systems that can rapidly evolve effective adaptive solutions.
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