A Dynamic Simulation Comparing Classical and Emergent-Network Models: Organizational Design Implications

Abstract

In the last decade, organizations have spent more on the creation, transformation, and communication of information than on the production of physical goods. The information age has been ushered in by the widespread assimilation of information and communication technologies. Many contemporary practitioners and organizational theorists predict the demise of the classical organizational design because of its inability to accommodate the sociological change engendered by the information age. The current study advances an emergent-network model of organizational design and compares it to the classical approach through a dynamic simulation of prototypical organizational activities. Organizational activities approximating one year were simulated in each of five organizations under constant baseline conditions and over one hundred experimental design conditions. The emergent network model manifested higher levels of goal attainment, resource utilization, and organizational capacity for accommodating change. These findings suggest that organizations will benefit from conformance to the design principals of the emergent-network model.