Review and Critique - Article Example

Running Head: ARTICLE REVIEW AND CRITIQUE Article Review and Critique Article Review and Critique The objective of the paper is to analyze and critique an article about the behavior of business organizations. The article studied is entitled Strategy at the Edge of Chaos by E. Beinhocker published in the McKinsey Quarterly in 1997. Upon reading the article, it can be considered as an important contribution to the concepts related to dynamics of the field of Economics specifically pertaining to organizational behavior in the 90s until the turn of the century.

In general, it is an interesting work that presented an informative perspective on the need for new paradigm and mentality in economics. The article opened by discussing the roots of management thinking which can be considered as an important basis for the understanding of the new concept referred to as economics on the basis of complex adaptive systems (Beinhocker, 1997, p. 26-29). The traditional economics is based on closed equilibrium systems with core ideas founded on energy physics. The equilibrium systems are continuously increasing in flaws on the basis of limitations in applications.

One reason is that it was established for agricultural and manufacturing economy, thus, the concepts were less more static and less adaptable. This cannot be applied in the present modern economic situation with high level of changes specifically based on technology (p.28). Upon the presentation of the characteristics of the traditional economics the concept of the complex adaptive systems was introduced. The complex adaptive systems is a concept referred to in the article as the answer to the need for a new model in economics that is based on change, innovation and uncertainty – the characteristics of economics in the real world.

The article presented important attributes of the complex adaptive systems such as being: open dynamic systems, with interacting agents, and able to initiate the emergence of self-organization. The law of complexity then was the proposed basis for the new economics (p.29-30). The article also presented 4 components of the new economics namely wisdom based on realistic cognitive behavior, webs of dynamic relationships, waves of changes in the market systems, and would-be worlds based on realistic assumptions and agent-based models (p.30-32). The article presented a significant amount of information regarding the concept of the new economics with ample examples that make the understanding easier to achieve even for readers that are not economic majors.

This is important since the information presented can be applicable in different fields specifically since the issue can affect every member of the population directly or indirectly. The last part of the article is about punctuated equilibrium and the strategies to be able to survive in the dynamic economy. Punctuated equilibrium is the concept of continuous changes that is based on continuously innovating market environment. Based on the data presented, the only way to survive in this type of market is through the evolution of the organization through complex adaptation in strategies.

A company needs to adapt and evolve like organisms, but in a manner that is more intelligent since evolution should be an intrinsic decision-making process unlike organisms that evolve based on an uncontrollable force mainly based on the utility of traits (p.33-37). In general, the information presented by the article can be characterized as clear, easy to understand and promising, although research on updated knowledge on the topic is needed to be undertaken to determine the development of the concept.

The conclusion of the article can be considered as an important contribution to the new economics that a company or organization needs to be a good evolver to be able to continuously thrive in the market with attributes of being able to apply robust strategies, to continuously adapt to changes, to have a balance between conservative operation and radical innovation, to apply diverse methods in operation, and to have flexibility to changes. These are the main strategies needed for an organization to survive in the edge of chaos.

References Beinhocker, E. D. (1997). Strategy at the edge of chaos. McKinsey Quarterly, 1, 24-39.