Constructal Law of Institutions within Social Organizations

Abstract

This work looked for a unifying theory between physical-biological domain and social sciences. Constructal law unified physical and biological domain by telling the general sense in which flow systems tend to evolve. Management theory looks for relations between institutions and human agency. Although being state of mind entities, institutions follow constructal law. This work proposed the main organization flows are information and credit. Biologic instincts derived from Darwinian natural selection are the driving or blocking forces of such flows. Once biologic instincts systematically block information and credit flows in large numbers, this work proposed every human organization must have institutions to inhibit some behaviors. Those institutions need to be present, at least partially, in formal rules of social groups. This way it is possible to predict expansion or downfall of human groups using objective and quantifiable data. Therefore, further studies may employ classical history to confirm this theory. This work analyzed some case studies to show qualitatively the application of proposed theory. Concluding, this work gave physically-biologically grounded guidance for institutional changes.