The Concept of Corporate Strategy. Por Kenneth R. Andrews. Homewood, III.: R. D. Irwin, 1980 Revised Ed. xi, 180 p.; 24 cm. Incluye referencias e indice. ISBN 0-256-02371-9.

The Concept of Corporate Strategy

This paper introduces the background and fundamental aspects of chaos and complexity together with the differences and the links between chaos and complexity, and the distinction between complicatedness and complexity with reference to issues in business administration. There is a need to be cautious when using chaos and complexity models in business administration, not to provide a superficial characterization of reality within a confused narrative. Besides, the application of these theories and models is accompanied with several rationales and logic, such as dialogic reasoning, circumscription, the logic of belief, paraconsistent logic, adductive and default reasoning. All these logic and rationale are applied in business administration and specifically in financial statements analysis, management discussion and analysis and notes to financial statements. There seems to be a need and an opportunity for the use of chaos and complexity in business administration; new logic and models are ready to be applied with solid foundations, but they require new forms of thinking.

Review of the principles of complexity in business administration and application in financial statements

Conceptual issues and the basis for the use of financial statements from the perspective of complexity and chaos are proposed. After analyzing the implications that these perspectives have for financial statements, basic accounting equation is examined from the view of complex logic through the mechanisms of the circumscription. Besides, the phase spaces arising from the relationship between indicators of financial health, such as total assets, stakeholder’s equity, profit and loss, or cash flow at end of year, are analyzed; also, the relationship among ratios of sustainability, liquidity, and profitability is revisited. The management discussion & analysis and notes to financial statements sections of financial statements are subjected to new interpretations, based on the beliefs logic and complex and chaotic metaphorical narratives. Finally, a critical perspective on the use of chaos and complexity in the analysis of financial statements is introduced.

Chaos and Complexity in Financial Statements

The study of complex systems is an interdisciplinary field [1 p. 4]; however, sciences of complexity remain under common and general principles [2], such as micro and macro level manifold [3, p. 41], emergency and chaos [4], interactions among a large number of agents [5], environment and aggregation [6], interdependencies [7], propagation, nonlinearity, feedback loops, open systems, memory and history, adaptation and self-regulation. Existing models are: a) autopoiesis (reproduction, replication, and ontogeny of structural change), b) dynamic systems (large-scale modeling, nonlinearity and unexpected behavior), c) dissipative systems (conditions far from equilibrium and triggering events), and d) dynamics of chaos (cumulative and chaotic nature of changes, moving away from equilibrium) [2]. Thus, complexity consists of a number of theories [8] and not a unified method and insight [9]; it is an intriguing concept with no characterization agreed on, and discussions are about intuitive notions [10]. Although metaphorical language is one of the existing approaches to complexity [11] and many models could have complex properties [4], concepts need to be properly understood, translating them into a useful model of reality [12], and caution is required, when trying to model a system as complex.

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Natural Gas: Moving to Chaos and Complexity in Financial Statements

Industrialization of construction is a business strategy to significantly improve competitiveness. However, the organization structure of the construction firms needs to support the new production system. The knowledge on why and how this business development can be accomplished is scarce, both within academia and in business practice. This research seeks to fill this knowledge gap.The purpose of organization structure and the production system have is to coordinate the firm’s processes and control the work performing resources. Information is one of the most fundamental dimensions for steering and controlling the work. The different information types are determined by the firm’s product customization strategy and the production system flexibility. Further, diverse information types are managed in different extent by the organizational steering mechanisms. Consequently, firms with dissimilar customization strategy or production flexibility should organizationally be designed differently in order to be efficient.The developed model identifies four generic production topologies: “engineer-to-order” (ETO), “manufacture-to-order” (MTO), “assembly-to-order” (ATO), and “make-standard-products” (MSP). The differences between the topologies can be related to the location of the “customer-order-decoupling-point” (CODP) in the product realization process; and to what extent the upstream and downstream processes continuously use stored information or process information to accomplish the work of each product order. The model predicts which organization structure mechanisms that should be used for which processes for each production topology. It is the specific configuration of the mechanisms that gives each production topology their organizational capability. The model has been validated by case studies in four organizations, each representing one of the four generic production topologies. Three cases considered housing and one studied truck manufacturing.It has been shown that the conventional housing firms have an ETO-production topology, while industrialized housing firms belonging to one of the others, i.e. MTO, ATO or MSP. The reason is that ETO-firms rely on crafts-based production to manage the work, while the other topologies base their steering mechanisms on industrial principles. These two types of production are fundamentally different, which also explain the need for different organization structures. The research complements previous knowledge and significantly increases the ability to predict, analyze and explain an organization’s design and behavior. The model can be used in practice to guide business development work and performance improvement programs.

The Role of Production Topology in Information Based Structuring of Organizations : The design of craft-based and industrialized construction firms

This paper presents a synthesis of different theoretical concepts and empirical surveys examining the nature of contemporary organizations that are able to survive and thrive in the long run within the conditions of discontinuous environment. It expands the model of reconfigurable organization presented by Galbraith et al. (2002) by providing in-depth understanding of its basic characteristics: Active leadership, knowledge management, learning, flexibility, integration, employee commitment and change readiness. These characteristics are presented as enablers for designing reconfigurable organizational structure, which is depicted in this paper. Reconfigurable organizations rest on the on-going redesign of its processes and structure by redeploying its resources in the manner that is most suitable for the current situation.

	 

	Key words: Organization, reconfigurability, environment, discontinuity.

The response to the changing landscape of tomorrow: Reconfigurable organizations

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The response to the changing landscape of tomorrow: Reconfigurable organizations