The problem solving perspective: A strategic approach to understanding environment and organization

Abstract

An important question facing business scholars is whether and how organizations may best adapt their investments, resource profiles, and strategies to the demands of their particular environments. While a broad literature describes organizational design principles that may assist in this regard, more recent work builds on Kauffman's (1993) NK model of biological evolution to explore how selection mechanisms and adaptive principles promote firms' exploitation and exploration efforts. This research stream has made contributions regarding the importance and efficacy of various internal adaptive factors in particular environmental settings. For instance, Levinthal (1997) shows that, despite extensive adaptation efforts, the influence of imprinting persists in complex environments with many local peaks. Rivkin (2000) demonstrates that NK complexity degrades the efficacy of search, compelling imitators to rely on search heuristics rather than adaptation via local learning. Rivkin and Siggelkow (2003) explore the tradeoffs between exploration and stability, and describe how particular organizational attributes, such as vertical hierarchy and group- or firm-level incentive systems, influence the flow of information throughout the organization. These as well as other contributions have added precision to the conceptualization of environments and sharpened understanding of organization by describing precisely how interdependencies across investment choices and/or resource profiles affect adaptation efforts.

Citation

Leiblein, M.J. and Macher, J.T. (2009), "The problem solving perspective: A strategic approach to understanding environment and organization", Nickerson, J.A. and Silverman, B.S. (Ed.) Economic Institutions of Strategy (Advances in Strategic Management, Vol. 26), Emerald Group Publishing Limited, Leeds, pp. 97-120. https://doi.org/10.1108/S0742-3322(2009)0000026006