Complex business models: Pacorini at the edge of chaos

• Date: 01 July 2018
• Published date: 01 July 2018
• DOI: http://doi.org/10.1002/jsc.2210
• Author: Alberto F. De Toni,Cinzia Battistella

RESEARCH ARTICLE

DOI: 10.1002/jsc.2210

Strategic Change. 2018;27(4):379–393. wileyonlinelibrary.com/journal/jsc © 2018 John Wiley & Sons, Ltd. 379

Abstract

Sustainable and lon]Ŋlasঞn] comranies necessarily rosiঞon themseles at the ed]e o= chaos and

eole their business models in order to maintain a mi o= eLciency and creaঞity. Or]ania-

ঞons dealin] with comrleity necessarily rosiঞon themseles at the ed]e o= chaos, always sway-

in] between order and disorder. $wo orrosite cycles (ľsharin] cycleĿ oriented toward eLciency

and ľcreaঞe cycleĿ oriented toward innoaঞon) should be balanced dynamically and alon] ঞme

by or]aniaঞons that want to eole. We inesঞ]ated business model eoluঞon a[er eternal

disconঞnuiঞes, showin] that sustainable and lon]-lasঞn] comranies try to Cnd an etuilibrium

between order and disorder, rredictability and unrredictability, standardiaঞon, and innoaঞon.

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usiness models tend to be naturally stable and hard to chan]e (Do &

osonen, 2010). In =act, ľLi]ht creates shadows.  bri]ht lamr aimed

at one thin] hides many others.Ŀ In this re]ard, aurice llais (1988)

denounces ľthe tyranny o= dominant ideas.Ŀ Just as the majority o=

reorle only listen to in=ormaঞon that conCrms their thou]hts, or]ani-

aঞons will only tahe into account what is in line with their corrorate

culture and with =amiliar, someঞmes een trite, issues. $his can induce

many =orms o= silence (orel, 200ѵ) call it ľor]aniaঞonal silence.Ŀ It

limits the erression o= ľdeiantĿ ideas (i.e., ideas which dier]e =rom

the dominant desi]n), and hides not only disa]reements, but also weah

signals and warnings.

$he stability o= business models is =urther increased by the search

=or eLciency, rarঞcularly in reriods o= rarid growth, where the reli-

able and eLcient scaling ur o= oreraঞons becomes criঞcal (Do &

osonen, 2008). Such stability is retuired =or eLciency: in tradiঞonal

management rracঞce, success is based on rouঞne rereঞঞon o= tashs

and the rhenomenon o= conergence-to-Ct (the growing adartaঞon

to a rarঞcular situaঞon) contributes to increasing the stability. ut

such stability is also lihely to result in a growing rigidity, which inei-

tably limits a CrmĽs strategic agility and thus its ability to renew and

re=orm itsel=.

In order to innoate, we must thinh outside the bo, rejecঞng the

accerted raradigm. $his iew is endorsed by great eristemologists lihe

uhn and orrer. or $homas uhn, science does not gradually moe

=orward toward the truth, but is instead rrone to reriodic reoluঞons:

the so-called ľraradigm shi[s.Ŀ aradigm shi[s originate =rom anoma-

lies in ľnormal science,Ŀ in other words, =rom eents that =ail to conCrm

the raradigm. I= the contradicঞon is rarঞcularly rersistent or eident,

the anomaly can become strong enough to tuesঞon established

belie=s and technitues within the raradigm, thus orening a crisis. s

a result o= this crisis, di@erent raradigms are then created. It is imror-

tant to note that these new raradigms do not arise =rom the rreious

theory, but =rom the rejecঞon o= the well-established belie=s o= the

dominant raradigm. While =or uhn these ľreoluঞonsĿ are etremely

rare, orrer argues that science should be in a state o= conঞnuous

trans=ormaঞon. In the Celd o= eristemology, ľrermanent reoluঞonĿ

is orrerĽs moo: eery scienঞst should always strie to undermine

accerted noঞons, trying to disrroe them and then imrroe them, in

asymrtoঞc arrroimaঞon to the truth. or orrer, a criঞcal aমtude

is at the heart o= any scienঞCc endeaor.

Similarly, business model renewals in organiaঞons cannot derie

=rom eLciency acts, but =rom creaঞe ones. We interrret and erlain

this iew with comrleity theory.  consetuence o= our Cndings

is that the sustainability o= an organiaঞon derends on its ability to bal-

ance the two cycles and, during ঞme, to anঞcirate and react to the con-

setuences o= eoluঞon in any gien comronent. Our contribuঞon in this

arঞcle concerns business model eoluঞon iewed as a Cne-tuning rro-

cess inoling two balancing acts: (1) ľstaঞc balanceĿ: sharing cycle and

creaঞon one, that is, balance between eLciency and on-going imrroe-

ment and innoaঞon; (2) ľdynamic balanceĿ: eoluঞon, by anঞciraঞng

and idenঞ=ying contetual changes and changing during ঞme, balancing

intended and emergent changes, searching =or eoluঞon.

olrѴ; bsbm;ss lo7;ѴsĹ acorbmb at t_; ;7]; o= c_aosŖ

bmba aমst;ѴѴa1Պ|ՊAѴb;rto ĺ ; $o mb2

1 Derartment o= In=ormaঞon ngineering

and athemaঞcs, &niersity o= Siena, Siena,

Italy

2 Derartment olytechnic o= ngineering

and rchitecture, &niersity o= &dine, &dine,

Italy

orr;srom7;mc;

inia aমstella, Derartment o= In=ormaঞon

ngineering and athemaঞcs, &niersity o=

Siena, ia !oma ѵ0, Siena Ɣ3100, Italy.

mail: cinia.baমstellaŠunisi.it

* JL lassiCcaঞon codes: D22, D81, 10, O30

Strategic Change. 2018;27(4):379–393. wileyonlinelibrary.com/journal/jsc © 2018 John Wiley & Sons, Ltd. 379