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Hierarchical Selection and Organizational Adaptation

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  • Warglien, Massimo

Abstract

The paper portrays the firm as a hierarchy of processes, exploring how interactions among nested dynamics shape the evolution of organizations. A computer model of intraorganizational evolution shows how interactions among different process levels within the firm lead to the emergence of an 'adaptation style,' by dynamically tuning explorations efforts and exploitation opportunities. In complex environments, this results in waveform processes of discovery and learning, which may be subject to competence and memory traps. The model analyzes interactions between innovation and diffusion of organizational competences, showing how different strategies of competence replication arise along innovation cycles. Furthermore, the paper suggests how the model can be operationalized, singling out organizations' 'traits' and tracking their diffusion and modification over time. Copyright 1995 by Oxford University Press.

Suggested Citation

  • Warglien, Massimo, 1995. "Hierarchical Selection and Organizational Adaptation," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 4(1), pages 161-186.
    • Handle: RePEc:oup:indcch:v:4:y:1995:i:1:p:161-86
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    Cited by:

    1. Bottazzi, Giulio & Dosi, Giovanni & Lippi, Marco & Pammolli, Fabio & Riccaboni, Massimo, 2001. "Innovation and corporate growth in the evolution of the drug industry," International Journal of Industrial Organization, Elsevier, vol. 19(7), pages 1161-1187, July.
    2. Giovanni Dosi & Luigi Marengo & Alessandro Nuvolari, 2020. "Institutions and economic change: some notes on self-organization, power and learning in human organizations," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(1), pages 1-22, March.
    3. Daniel A. Levinthal & Alessandro Marino, 2015. "Three Facets of Organizational Adaptation: Selection, Variety, and Plasticity," Organization Science, INFORMS, vol. 26(3), pages 743-755, June.
    4. Daniel A. Levinthal & Massimo Warglien, 1999. "Landscape Design: Designing for Local Action in Complex Worlds," Organization Science, INFORMS, vol. 10(3), pages 342-357, June.

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