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Energising Order-Creating Networks Of Distributed Intelligence: Improving The Corporate Brain

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  • BILL McKELVEY

    (The Anderson School at UCLA, 110 Westwood Plaza, Box 951481, Los Angeles, CA 90095-1481, USA)

Abstract

Human and social capital developments are discussed in the context of increasing corporate IQ, defined as distributed intelligence (DI) in firms, as the basis of economic rent generation. A review of current multilevel leadership theories shows that charismatic visionary CEOs more often than not create conditions likely to inhibit the development of DI. Complexity science theory indicates that "adaptive tension" dynamics (analogous to Bénard cell energy-differentials) may be used to foster adaptively efficacious DI appreciation. The optimal region for rapidly improving adaptive fitness occurs "at the edge of chaos". This region — in which emergent self-organisation occurs — exists between the 1st and 2nd critical values of adaptive tension. Below the 1st value, there is little change; above the 2nd value, the system becomes chaotic and dysfunctional. Various activities available to rent-seeking CEOs wishing to create or enlarge the region of emergence are discussed.

Suggested Citation

  • BILL McKELVEY, 2001. "Energising Order-Creating Networks Of Distributed Intelligence: Improving The Corporate Brain," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 5(02), pages 181-212.
    • Handle: RePEc:wsi:ijimxx:v:05:y:2001:i:02:n:s1363919601000348
    DOI: 10.1142/S1363919601000348
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    Cited by:

    1. Agnieszka Dziubinska, 2018. "Understanding Complexity Leadership: Lesson From Emerging Environment (Przywodztwo w warunkach zlozonosci – doswiadczenia z dzialalnosci w warunkach rynkow wylaniajacych sie)," Research Reports, University of Warsaw, Faculty of Management, vol. 1(26), pages 155-172.
    2. Mary Han & Bill McKelvey, 2016. "How to Grow Successful Social Entrepreneurship Firms? Key Ideas from Complexity Theory," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 24(03), pages 243-280, September.
    3. David Leong, 2023. "Action in Complexity: Entanglement and Emergent Order in Entrepreneurship," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 32(1), pages 182-217, March.

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