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Organization Design for Complex Worlds

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  • Jonathan Libgober

Abstract

I study the role of \emph{horizontal complexity} -- defined as the variation in actions that similar tasks require -- in organization design. A continuum of workers each choose an action to adapt to a local state that follows a Gaussian process across locations. Headquarters can group workers into \emph{teams}, simplifying the attention problem it faces in coordinating across the organization, at the cost of inhibiting adaptation. Tools from spectral theory identify how horizontal complexity affects team size: roughly speaking, variation left unresolved by headquarters expands teams, while variation concentrated along dimensions that headquarters absorbs through attention shrinks them.

Suggested Citation

  • Jonathan Libgober, 2026. "Organization Design for Complex Worlds," Papers 2607.16640, arXiv.org.
  • Handle: RePEc:arx:papers:2607.16640
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    References listed on IDEAS

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    1. Wouter Dessein & Tano Santos, 2006. "Adaptive Organizations," Journal of Political Economy, University of Chicago Press, vol. 114(5), pages 956-985, October.
    2. Rohin Borpujari, 2026. "Adaptive Secrecy in the Making of the Atomic Bomb: Toward a Process View of Secretive Innovation," Organization Science, INFORMS, vol. 37(1), pages 234-271, January.
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