Framework for the Role of Self-Organization in the Handling of Adaptive Challenges (2009)

This paper extends concept of self-organization from natural sciences to management and proposes a framework for role of self-organization in handling of adaptive challenges enterprises. The process of self-organization is a characteristic of those complex adaptive systems that are far-from equilibrium, and results in creation of in a system internal interactions between agents leading to stronger adaptive capability. This paper presents a synthesis of concept of self-organization suitable for management with communication as its central focus. Results from an empirical study in three Australian small and medium sized enterprises (SMEs) indicate that an adequate level of three key factors-trust level, open communication and strength of value system in an enterprise-is needed for self-organization to occur. Introduction Managers today are faced an increasingly turbulent and unpredictable environment with rapid changes in market place (Morgan, 1988; Merry, 1995; Brown & Eisenhardt 1998; Pascale, 1999; White, 1999; Meyer, Gaba & Colwell 2005). The changing reality for organizations has led to long-held Newtonian paradigm in management being challenged view offered chaos theory (Zimmerman, 1993; Wheatley, 1994; Tetenbaum, 1998; Tasaka, 1999). Chaos theory offers a view of world as dynamic where change is norm not exception, and where prediction is impossible. Complexity theory contends that organization can arise spontaneously and is adaptive (Frederick , 1 998). In natural world astonishingly simple rules, or constraints, suffice to ensure that unexpected and profound dynamical emerges spontaneously, and this self-organization has been termed order for free (Kauffman, 1995: 74). Self-organization along with selection creates a system's capacity for adaptation to environmental conditions (Kauffman, 1993:173). A number of disciplines in natural sciences have led study into concept of self-organization - for instance chemistry (Prigogine, 1968, 1976; Nicolis & Prigogine 1977; Prigogine S Shalizi, Shalizi H Jantsch, 1980; Kauffman, 1993, 1995; Camazine et al 2001). While idea of self-organization has been taken up management theorists (Weick, 1977; Foerster, 1984; Ulrich & Probst 1984; Drazin & Sandelands 1992; Comfort, 1994; Molleman, 1998, 2000; Biggiero, 2001; Stacey, 2001), there is a limited amount of empirical research - indicating a gap in understanding of complexity science's application to social world. Researchers have pointed out need for appropriate consideration when applying concepts from natural sciences to social sciences. As Comfort (1994) notes the concept of self-organization needs to be redefined and reinterpreted in to assess both its presence and functions in performance of social systems in rapidly changing environments. This paper extends concept of self-organization from natural sciences to management using a cross-disciplinary approach and examines this theoretical framework in light of empirical results. Need for Applying Complexity Theory to Management Numerous books aimed at management practitioners (Peters, 1989; Goldstein, 1994;Watson, 1994; Wheatley, 1994; Nonaka & Takeuchi 1995; Axelrod & Cohen 1999; Haeckel, 1999; Rails Jr. & Webb, 1999; Wood, 2000) and general public (Waldrop, 1994; Merry, 1995) have raised awareness for potential application of complexity theory. However as Mitleton-Kelly (2003) notes, by comparison there is relatively little work on developing a theory of complex social systems despite influx of books on complexity and its application to management. The dynamics of complex adaptive systems, such as their ability to evolve and learn over time, can provide organizations with insights into developing capabilities to handle adaptive challenges. …