ORGANIZATIONAL EVOLUTION

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ORGANIZATIONAL EVOLUTION
Roots in Biological Evolution Theory
  Charles Darwin Alfred Wallace Explanation of
continuously emerging novel biological forms or
attributes through population interactions with
environments Evolutionary theory describes the
historical genealogies of species
Randomness of evolutionary paths - no progress
toward an end-goal (teleology) the blind
watchmaker man is not the Crown of
Creation Instead, developments are recurrent,
cumulative, probabilistic patterns with
unpredictable paths (yet open to post facto
understanding)
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Core Bio-Evolution Concepts
Population Organisms that share a common gene
pool (Speciesdf actually or potentially
interbreeding organisms) Variation Modifications
of forms are produced by chance via mutations,
genetic coding errors of individual
organisms Natural Selection Reproduction
survival of organisms whose heritable traits are
better suited to existing environmental
conditions Retention Persistence within a
population of the selected variation(s) over
successive generations Descent with
modification (Darwin) parents transfer their
genetically altered selected traits to their
offspring Inheritance involves transfer of
modified genetic codes, by not of individually
acquired attributes (a.ka. Lamarckian evolution)
What are orgl evolution equivalents to
biological concepts?
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Species Adapt to Fit Niches
Speciation new populations of reproducing
organisms capture scarce niche resources
(struggle for existence within between
species) Ecological Niche environmental habit
where a species lives and its functions within
that biotic community (e.g., predator,
prey) Niche competition Species struggle to
adapt to conditions within local environments
but, only one species can occupy a given niche
Darwin found finches beaks modified to fit
Galapagos Islands plants

• Phenotype (outward physical traits) retained
  because of adaptive advantages enjoyed by
  individuals with superior survival and
  reproduction
• Alpha gorillas acquire more mates than others
• Faster cheetahs survive and reproduce
• Genotype (internal inheritable info the DNA
  code) retained when a phenotype survives
  encounters within its niche environment

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Smooth or Jerky?
Niles Eldredge and Stephen Jay Gould (1972)
proposed a punctuated equilibrium theory of
evolutionary rates. Evolutionary changes occur in
relatively short bursts (millennia), interspersed
with long periods of comparative stasis (millions
of years).
They attacked phyletic gradualism, the dominant
idea of continually changing organisms, small
degrees of adaptation to fit the environment.
Fossil records show few intermediate forms,
implying that many species change very little
after their initial appearance. Many new species
can emerge quickly after mass extinctions, such
as the Yucatan asteroid collision that killed off
most of the dinosaurs, opening diverse ecological
niches for mammal species to populate.
Just horsin around
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Sociocultural Evolution
After Darwins Origin of Species (1859), social
scientists tried to apply biological principles
to explain sociocultural evolution
Social Darwinism ideology asserted that the
fittest races cultures inevitably dominate,
thus justifying 19th c. Euro-American imperialism
Spencers Larmarckian evolution posited a slow,
steady progress toward equilibrium as individuals
changed their habits, eventually achieving
perfect adaptation. Spencer popularized the
notorious phrase survival of the fittest.

• Theorists depicted increasingly advanced
  societies cultures, typically because of
  technological innovations
• Morgan Tylor savagery, barbarism,
  civilization
• Marx ancient, feudal, capitalist,
  socialist-communist
• Lenski hunter-gatherer, horticultural,
  agrarian, industrial

Herbert Spencer
Continuity with sociobiology evolutionary
psychology (Wilson Dawkins) Selfish genes (DNA
making DNA) determine all human behavior,
culture, morality
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Organizational Evolution

• Can biological evolutionary principles be adapted
  or modified to explain the origins and
  proliferation of new organizational forms
  (speciation)?
• Is orgl evolution a metaphor or an explanatory
  theory?
• Darwinian inheritance or Lackmarckian acquired
  traits?
• What analogies to core biological concepts
  species (orgl form), population, inheritance,
  generation, genes?

Orgl evolutionary theory must identify the
variation-selection-retention mechanisms that
create and spread new orgl forms.

• Market profit main selection mechanism for
  business orgs economic market efficiency selects
  which firms will survive
• Professional judgments and political processes
  predominate in selecting other forms (nonprofit,
  public, voluntary, SMO)

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Three Sources of Orgl Variation
Three sets of processes affect the emergence of
new orgl forms at the population level
(Romanelli 1991 Rao 1998)
Organizational genetics random variation in form
occurs during everyday orgl activities Are orgl
comps routines really the equivalent of
genes? Environmental conditioning/constrained
variation external sociopolitical forces create
new resource spaces not occupied by current orgl
forms, and constrain or facilitate the popular
legitimation of the new forms Social
systems/cultural frame variation induced by
embedded social-organizational interactions
resourceful actors see new orgl forms as an
opportunity to realize highly valued interests
(Amburgey Singh 2002333)
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Genetic Sources
Orgl genetics emphasizes transmissible
communicable characteristic traits selected by
environmental conditions Bill McKelvey (1982
McKelvey Aldrich 1983) proposed a schema for
classifying orgl forms according to their
dominant comps (competence elements).
Populations are polythetic clusters of orgs with
similar dominant comps that are transferable
among members. Comps basic knowledge and skills,
carried in individual minds, transmitted via
communication personnel exchanges with other
organizations EX Technologies, procedural
guidelines, patents, job descriptions, premiums,
determined prescriptions
Evolutionary change involves new (re)combinations
of dominant comps, selected at the population
level Comps are orgl analogs to biological
genes Compool genotype
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A Taxonomy of Forms
McKelvey urged application of biological
taxonomic methods to cluster multiple orgl
attributes, generating family tree of orgl
forms revealing a Darwinian descent-with-modificat
ion. EX Ancient Mesopatamian floods, wars,
population shifts created, selected retained
numerous new forms Temples ? Palaces ?
Commercials ? Professionals
FIGURE HERE
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Routines
Richard Nelson Sidney Winter (1982) developed
evolutionary economics using computer simulations
of industry growth.
Evolution produces monopoly firms selected
because differing profit rates yield varied
growth. But, entry of new firms into industry
restrains monopoly, as can innovation-imitation
processes that increase productivity variation
among firms. Orgl routines a major source of
genetic variation.

• Routines formal and tacit rules or capabilities
  internal to an org that affect its activities
  productivity
• Standard operating routines governing existing
  resource stocks
• Investment routines responding to changing
  profits, growth
• Search routines for innovative technologies (RD)

Routine is equivalent to gene, but org is analog
to species phenotype
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Environmental Sources
Environmental conditioning sources of variation
are diverse external constraints on potential for
new orgl forms to emerge

• Technology is a major driving force creating
  macro-economic growth (capital intensity, real
  wages). Innovations create new niches for new
  orgl forms to enter exploit
• Technical advance fuels macroeconomic growth
  (Nelson)
• Business firms are technology carriers by
  applying scientific ideas (patents)

Co-evolution coupled evolution of multiple
populations or forms (Amburgey Singh). Orgs
environments also co-evolve via reciprocal
influence EX SMO protest repertoires evolve to
cope with changes in state supression
technologies (Internet fundraising, protest
scheduling)
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Sociocultural Sources

• Social systemic and cultural sources of form
  variation arise by intentional design as orgl
  participants actively attempt to generate
  alternatives and seek solutions to problems
  (Aldrich 199922)
• Internal search behavior for solutions to
  unusual problems
• Planned transfers of personnel to diffuse
  practices
• Formal programs, incentives to reward innovative
  behavior
• Strategic alliances to acquire partners
  know-how
• Entrepreneurial outsiders enter industry to
  found new orgs

Identities and legitimacy maybe created by
collective action EX Professional societies,
business assns, labor unions
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Historical Legacies
Imprinting orgl forms fixed by environmental
conditions during a founding era (Stinchcombe
1965) EX Construction companies reflect 19th c.
family-based practices

• Path dependence initial random events often
  constrain an orgs later options (history does
  matter)
• Once launched down one path, retracing or
  switching routes becomes increasingly difficult
  due to sunk costs
• Dynamic increasing returns cumulative
  technologies reinforces commitment to stay on the
  initial path

Complementary interdependencies among
technologies EX Software compatibility with
hardware (Apple vs MS) However, locked-in
technologies arent necessarily optimal QWERTY
typewriter Betamax VCR MS-DOS
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References
Eldredge, Niles and Stephen Jay Gould. 1971.
Speciation and Punctuated Equilibria An
Alternative to Phyletic Gradualism. Pp. 82-115
in Models in Paleobiology, edited by T.J.M.
Schopf. San Francisco Freeman Cooper. McKelvey,
Bill. 1982. Organizational Systematics Taxonomy,
Evolution, Classification. Berkeley, CA
University of California Press. McKelvey, Bill
and Howard E. Aldrich. 1983. Populations,
Natural Selection, and Applied Organizational
Science. Administrative Science Quarterly
28101-128. Nelson, Richard and Sidney
Winter.1982. An Evolutionary Theory of Economic
Change. Cambridge, MA Harvard University
Press. Romanelli, Elaine. 1991. The Evolution
of New Organizational Forms. Annual Review of
Sociology 1779-103. Stinchcombe, Arthur. 1965.
Organizations and Social Structure. Pp. 142-193
in Handbook of Organizations, edited by James G.
March. Chicago Rand McNally.