Formal models have linked prehistoric and historical instances of technological change (e.g., the Upper Paleolithic transition, cultural loss in Holocene Tasmania, scientific progress since the late nineteenth century) to demographic change. According to these models, cumulation of technological complexity is inhibited by decreasing— while favoured by increasing—population levels. Here we show that these findings are contingent on how complexity is defined: demography plays a much more limited role in sustaining cumulative culture in case formal models deploy Herbert Simon's definition of complexity rather than the particular definitions of complexity hitherto assumed. Given that currently available empirical evidence doesn't afford discriminating proper from improper definitions of complexity, our robustness analyses put into question the force of recent demographic explanations of particular episodes of cultural change.
The similarity between product architecture and organization design has become known as the "mirroring hypothesis". We present a theoretical model of new product development using the NK-model, in which we represent organization design with varying degrees of mirroring. The main result holds that perfectly mirroring organizations only perform well in designing products with many components and low complexity, while imperfectly mirroring organizations do better in designing product with few components and high complexity. Our theoretical model can inform future empirical research, which hitherto lacked a common representation framework for organization design.
We propose a generalized NK-model of late-mover advantage where late-mover firms leapfrog first-mover firms as user needs evolve over time. First movers face severe trade-offs between the provision of functionalities in which their products already excel and the additional functionalities requested by users later on. Late movers, by contrast, start searching when more functionalities are already known and typically come up with superior product designs. We also show that late-mover advantage is more probable for more complex technologies. Managerial implications follow.
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