Dealing with Complexity: Integrated vs. Chunky Search Processes

40 Pages Posted: 10 Mar 2008 Last revised: 28 Dec 2011

See all articles by Oliver Baumann

Oliver Baumann

University of Southern Denmark - Strategic Organization Design Unit (SOD)

Nicolaj Siggelkow

University of Pennsylvania - Management Department

Date Written: September 29, 2011

Abstract

Organizations are frequently faced with high levels of complexity. While the importance of search for dealing with complex systems is widely acknowledged, how organizations should structure their search processes remains rather unexplored. This paper starts to address a basic question: how much of the entire system, and thus complexity, should be taken into consideration at any given time of a search process? Should a problem solver pursue an integrated search and be concerned with the whole system right from the start, or should a problem solver incrementally expand the “search domain” – the subset of system elements and interdependencies that are included in the search efforts, and if yes, how “chunky” should these steps be? Our analysis of a simulation model yields four insights: (1) expanding the search domain in smaller steps can yield a distinct advantage in final system performance; (2) following a completely incremental expansion pattern is not necessary as long as larger chunks are added early on in the process; (3) the value of chunky search is particular high if highly influential system elements are considered first, while highly dependent elements are added later; (4) under time pressure, chunky search can lose its performance advantage over more integrated search processes. We discuss the implications of our findings for managing organizational search and complex systems, more broadly.

Keywords: Complex systems, organizational search, search structuring, organizational problem solving

JEL Classification: D21, D23, D83, O31, O32

Suggested Citation

Baumann, Oliver and Siggelkow, Nicolaj, Dealing with Complexity: Integrated vs. Chunky Search Processes (September 29, 2011). Available at SSRN: https://ssrn.com/abstract=1104617 or http://dx.doi.org/10.2139/ssrn.1104617

Oliver Baumann (Contact Author)

University of Southern Denmark - Strategic Organization Design Unit (SOD) ( email )

Campusvej 55
Odense, DK-5230 M
Denmark
+45-6550-4433 (Phone)

HOME PAGE: http://www.sdu.dk/staff/oliv.aspx

Nicolaj Siggelkow

University of Pennsylvania - Management Department ( email )

The Wharton School
Philadelphia, PA 19104-6370
United States
215-573-7137 (Phone)
215-898-0401 (Fax)

HOME PAGE: http://www-management.wharton.upenn.edu/siggelkow/

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