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Definitions of Complexity

In: Organized Complexity in Business

Author

Listed:
  • Johannes Strikwerda

    (University of Amsterdam, Amsterdam Business School)

Abstract

In the multiplicity of definitions of complexity, this chapter elaborates on different types of complexity. The system definition of complexity focuses on how complex systems work, whereas the cybernetic definition of complexity explains how in complex systems goals are achieved, including survival in changing circumstances. Various types of non-linear causalities are introduced. The latter provides a link with concepts used in management and organization, especially the issue of in-control. Because control is programmed at multiple levels in society and organization, the concept of culture is opened up beyond its usual simulacra. Beniger’s four levels of control are related to complexity via the complexity of feedback. This chapter introduces concepts like dynamic objectivity, Kolmogorov complexity, detail complexity, subjective complexity, epistemic complexity, and generative complexity. This unearths some limitations to Ashby’s Law of requisite Variety. In addition to different definitions of complexity, this chapter presents a taxonomy of different types of complexity. Each of these types of complexity requires a different handling in order to cope with it, varying from mathematical modeling, to operational procedures, to reduction of complexity through growth of knowledge. Especially the difference between organized complexity, as to be used in business, and disorganized complexity is explained. This chapter lays a basis for dealing effectively with the various types of complexity. The idea of ICAS is consistent with the concept of the organic organization dating back to the sixties of the twentieth century. Now a better understanding, evaluation of that concepts is possible, as well as a better instrumentation. With that, the distinction between disorganized complexity and organized complexity is introduced. The growing complexity in the economy implies a shift from traditional, physical asset-based administrative instruments to information-based administrative instruments. With that, it becomes clear what Drucker’s concept of information-based organization is in administrative terms.

Suggested Citation

  • Johannes Strikwerda, 2023. "Definitions of Complexity," Future of Business and Finance, in: Organized Complexity in Business, chapter 4, pages 51-82, Springer.
  • Handle: RePEc:spr:fuobcp:978-3-031-25237-2_4
    DOI: 10.1007/978-3-031-25237-2_4
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