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Information flows in hierarchical networks and the capability of organizations to successfully respond to failures, crises, and disasters

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  • Helbing, Dirk
  • Ammoser, Hendrik
  • Kühnert, Christian

Abstract

In this paper we discuss the problem of information losses in organizations and how they depend on the organization network structure. Hierarchical networks are an optimal organization structure only when the failure rate of nodes or links is negligible. Otherwise, redundant information links are important to reduce the risk of information losses and the related costs. However, as redundant information links are expensive, the optimal organization structure is not a fully connected one. It rather depends on the failure rate. We suggest that sidelinks and temporary, adaptive shortcuts can improve the information flows considerably by generating small-world effects. This calls for modified organization structures to cope with today's challenges of businesses and administrations, in particular, to successfully respond to crises or disasters.

Suggested Citation

  • Helbing, Dirk & Ammoser, Hendrik & Kühnert, Christian, 2006. "Information flows in hierarchical networks and the capability of organizations to successfully respond to failures, crises, and disasters," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 363(1), pages 141-150.
    • Handle: RePEc:eee:phsmap:v:363:y:2006:i:1:p:141-150
    DOI: 10.1016/j.physa.2006.01.055
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    Citations

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    Cited by:

    1. Durugbo, Christopher & Tiwari, Ashutosh & Alcock, Jeffrey R., 2013. "Modelling information flow for organisations: A review of approaches and future challenges," International Journal of Information Management, Elsevier, vol. 33(3), pages 597-610.
    2. Nitesh Bharosa & JinKyu Lee & Marijn Janssen, 2010. "Challenges and obstacles in sharing and coordinating information during multi-agency disaster response: Propositions from field exercises," Information Systems Frontiers, Springer, vol. 12(1), pages 49-65, March.
    3. Cameron Gordon, 2022. "The Information Bottleneck Principle in Corporate Hierarchies," Papers 2210.14861, arXiv.org.

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