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The nature of social organization of production: From firms to complex dynamics

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  • Leonardo Augusto Amaral Terra
  • João Luiz Passador

Abstract

The properties of the firm are crucial starting points for developing theories on economy and management. The aim of this study is to propose a general theory of the social organization of production, mapping the essential conditions for its creation, development, and growth. In order to do so, we propose an evolutionary theory in which the relations of the organization's sociotechnical system manifest themselves through a self‐perpetuating dynamic where leaders take on the role of social attractors and their viable outline is defined by their capacity for regeneration and by the flows of resources and information that pass through them. This goes against the finalist conceptions of the firm, in which the scope is to meet external demands. In this type of dynamics, the objective of the structure is to ensure its own organization and the realization of its identity and autonomy.

Suggested Citation

  • Leonardo Augusto Amaral Terra & João Luiz Passador, 2019. "The nature of social organization of production: From firms to complex dynamics," Systems Research and Behavioral Science, Wiley Blackwell, vol. 36(4), pages 514-531, July.
    • Handle: RePEc:bla:srbeha:v:36:y:2019:i:4:p:514-531
    DOI: 10.1002/sres.2567
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