Globalization, Strategy, and Evolution: A Systemic Evolutionary Framework for Organizational Change

Abstract

The paper develops a formal evolutionary framework for organizational change. It argues that strategizing is part of a learning process that can be captured using evolutionary concepts illustrated by the example of globalization processes. These lead to entry and encounters of organizations of different fitness levels. New and established actors need to learn and adapt to new conditions. The argument is based on a model of systemic evolution that allows to consider the learning process of actors. The paper extends the evolutionary economic framework in two directions a) by supplying a micro-level concept superior to routines and b) by focussing on a systemic evolutionary school that is superior to Neo-Darwinian and Lamarckian approaches to (social) evolution. The power of the framework is shown by its ability to integrate relevant perspectives in the area of organization and strategy.

The paper is organized as follows: It discusses theoretical perspectives from strategy, economics, evolutionary biology and psychology at first. Then it builds a link between micro- and macro-levels of social systems based on an evolutionary conception of organizational change. The paper then links managerial actions and the evolution model to organizational performance outcomes, followed by a discussion of organizational development as evolutionary competitive process in globalization.

Keywords: globalization, strategy, evolution, mental representations, gestalt psychology, organization, organizational change