Organization Culture as a Complex System: Balance and Information in Models of Influence and Selection

We define the complex system underlying organizational culture by incorporating the social-psychological principles of balance and information (B-I) into models of influence (changes in attitudes as a function of interaction) and selection (changes in interaction). We identify information based influence as a potential anchor for actors' sentiments so that they are not overwhelmed by normative influence. In the model of selection, we identify the pursuit of information as an important counterbalance to the effect of homophily (interacting with others like oneself). Using the tools of dynamic systems we show how our models generate the full range of equilibria of complex systems. Through simulations we also explore how our system responds to exogenous effects.