Scalable Enterprise Systems: Control Versus Emergence

Arizona State University, Scottsdale AZ

Investigators

Abstract

This project provides funding for the development of a scaleable and generic theory of enterprise which will provide new theoretical insight into the nature of the complex organizational networks. From a single firm's perspective, the enterprise includes the organization itself, suppliers, distributors, and end consumers, and invariably transcends multiple industries and markets. Complexity theory will be used as the basis for framing a theory of enterprises. Case study observations from Honda of America and DaimlerChrysler will identify archetypal configurations within enterprises, and a series of theoretical propositions will be developed which can be tested in subsequent extensions of the project. A simulation model of these enterprises will also be developed to verify and validate our theory. New theoretical models in this area are imperative to inform both practice and education. At the core of such a theory lies the tension between control and emergence. Controls represent the actions an organization takes to influence the behavior and outcomes of other firms in its enterprise system. However, the structure and behavior of an enterprise are in large part emergent, outside of the control of the organization. Whereas control may lead to short-term efficiency, emergence leads to long-term creativity and adaptive responses. By implication, then, too much enterprise control may actually thwart the long-term goals of the organization, leading us to raise questions if such extended control (e.g. ERP) is feasible or even desirable. This research will identify the critical middle ground between too much and too little control, between centralized versus emergent order. It will ultimately attempt to identify the theoretical limits of centralized control offered by modern information technology such as integrated ERP. This research will give organizations specific prescriptions concerning how to move forward with their modernization plans concerning information technology and enterprise integration.