Enterprise design through complex adaptive systems and efficiency measurement
Authored by Oscar Herrera-Restrepo, Konstantinos P Triantis
Date Published: 2019
DOI: 10.1016/j.ejor.2018.12.002
Sponsors:
No sponsors listed
Platforms:
No platforms listed
Model Documentation:
Other Narrative
Model Code URLs:
Model code not found
Abstract
Managerial policies affect enterprise operations facilitating or
impeding the achievement of goals. Enterprises can operate individually
or might also be part of a group of interconnected enterprises. For an
enterprise operating as part of a (de)centralized group of enterprises
with a similar or complementary mission and under the same or different
ownership, the coordination of decisions and actions is important. Using
the concept of network as an arrangement of interconnected nodes, this
paper deals with enterprises as the members of a network, and with
enterprise transactions as the connections among its members. We
consider coordination exhibiting connectivity, feedback, and adaptation.
These features are not only typical of enterprise networks, but also of
complex adaptive systems (CAS). By considering enterprise networks as
CAS, we study managerial policies that affect the coordination among the
members of enterprise networks and the subsequent effect on technical
efficiency both at the individual member enterprise and network levels.
To approximate the effects of coordination-driven managerial policies,
we consider flocking behavior from natural ecosystems, which the CAS
literature studies, as a proxy for managerial policies. We simulate the
relationships between managerial policies and technical efficiency in an
enterprise network of deregulated power plants through an agent-based
model. Experimental results inform when and how managerial policies
enhance the coordination among network members and allow for the
investigation of the relationships that exist between individual
decisions and collective influences. These relationships result in an
emergent goal seeking network behavior with respect to the goal of
achieving technical efficiency. (C) 2018 Elsevier B.V. All rights
reserved.
Tags
Complex adaptive systems
data envelopment analysis
Enterprise design
Managerial policies
Efficiency measurement
Network-dea model
Productive efficiency
Dynamic efficiency