Perspective—From Gaussian to Paretian Thinking: Causes and Implications of Power Laws in Organizations
Published Online:7 Oct 2009https://doi.org/10.1287/orsc.1090.0481
References
- Time Matters: On Theory and Method (2001) (University of Chicago Press, Chicago) Google Scholar
- Modelling the dynamics of language death. Nature (2003) 424:900Crossref, Google Scholar
- The nature of markets in the world wide web. Quart. J. Electronic Commerce (2000) 1:5–12Google Scholar
- A random graph model for massive graphs. Proc. 32nd Annual ACM Sympos. Theory of Computing (2000) (ACM, New York) 171–180Crossref, Google Scholar
- Catching the “network science” bug: Insight and opportunity for the operations researcher. Oper. Res. (2009) 56:1047–1065Link, Google Scholar
- The Long Tail (2006) (Random House Business Books, London) Google Scholar
- More is different. Science (1972) 177:393–396Crossref, Google Scholar
- The emergence of self-organisation in social systems: The case of the geographic industrial clusters. (2003) . Unpublished doctoral dissertation, University of Durham, Durham, UKGoogle Scholar
- Beyond Gaussian averages: Redirecting organization science toward extreme events and power laws. J. Internat. Bus. Studies (2007a) 38:1212–1230Crossref, Google Scholar
- Extremes and scale-free dynamics in organization science: Some theory, research, statistics, and power law implications. (2007b) Presentation, Academy Management ConferenceAugust 6PhiladelphiaGoogle Scholar
- Using Scale-free theory from complexity science to better manage risk. Risk Management: An International Journal (2009) 11(4). ForthcomingGoogle Scholar
- Pareto Corporations: Statistical Life and Death in Complex Business Networks (2009) (Kyoto University, Kyoto, Japan) . ForthcomingGoogle Scholar
- Increasing Returns and Path Dependence in the Economy (1994) (University of Michigan Press, Ann Arbor) Crossref, Google Scholar
- Das Gesetz der Bevolkerungskoncentration. Petermanns Geographische Mitteilungen (1913) 59:74–76Google Scholar
- Zipf distribution of U.S. firm sizes. Science (2001) 293:1818–1820Crossref, Google Scholar
- Nonexistence of a typical firm in the U.S. economy: Extremely heavy tails in firm size and growth. (2008) Presentation, Organizational Science Winter ConferenceFebruary 8The Resort at Squaw Creek, CAGoogle Scholar
- From rupture to structure: The physical character of flocs. Water Sci. Tech. (2004) 50:55–62Crossref, Google Scholar
- How Nature Works: The Science of Self-Organized Criticality (1996) (Copernicus, New York) Crossref, Google Scholar
- Linked: The New Science of Networks (2002) (Perseus, Cambridge, MA) Google Scholar
- The origin of bursts and heavy tails in human dynamics. Nature (2005) 435:207–211Crossref, Google Scholar
- Scale-free networks. Sci. Amer. (2003) 288(May):60–69Crossref, Google Scholar
- On the use of limit theorem arguments in economic statistics. Amer. Statistician (1977) 31:85–87Google Scholar
- Complexity, stories, and knowing. Emergence: Complexity and Organ. (2005) 7:32–40Google Scholar
- Statistical properties of corporate board and director networks. Eur. Phys. J. B—Cond. Matt. (2004) 38:345–352Crossref, Google Scholar
- Scaling and allometry in the building geometries of greater London. Eur. Physical J. B (2008) 63:303–314Crossref, Google Scholar
- , Ketchen D. J., Bergh D. D. Analysis of extremes in management studies. Res. Method. in Strat. and Mgmt. (2006) 3(Elsevier, Oxford, UK) 123–197Crossref, Google Scholar
- , Lissack M. R., Gunz H. P. Complexity in the dynamics of organizational founding and failure. Managing Complexity in Organizations (1999) (Quorum Books, Westport, CT) 292–312Google Scholar
- The Origin of Wealth: Evolution, Complexity, and the Radical Remaking of Economics. (2007) (Harvard Business School Press, Cambridge, MA) Google Scholar
- Les tourbillons cellulaires dans une nappe liquide transportant de la chaleur par convection en régime permanent. Ann. Chim. Phys (1901) 23:62–144Google Scholar
- Physical space and long-tail markets. Physica A (2008) 388:691–696Crossref, Google Scholar
- Invention in the city: Increasing returns to scale in metropolitan patenting. Res. Policy (2007) 36:107–120Crossref, Google Scholar
- Wal-Mart: The Bully of Bentonville (2007) (Doubleday Business, New York) Google Scholar
- Extreme events, power laws, and adaptation: Towards an econophysics of organization. Best Paper Award. Acad. Mgmt. Conf. (2007) (August 7)PhiladelphiaCrossref, Google Scholar
- The statistical mechanics of complex product development: Empirical and analytical results. Management Sci. (2007) 53:1127–1145Link, Google Scholar
- , Colander D. Some Santa Fe scenery. The Complexity Vision and the Teaching of Economics (2000) (Edward Elgar, Cheltenham, UK) 29–49Google Scholar
- Why are so many important events unpredictable? Self-organized criticality as the “Engine of History.”. Japanese J. Poli. Sci. (2002) 3:25–44Crossref, Google Scholar
- Ubiquity: The Science of History… or Why the World Is Simpler Than We Think (2000) (Weidenfeld and Nicolson, London) Google Scholar
- Power laws and the new science of complexity management. Strategy+Business (2004) 34:1–8Google Scholar
- Hierarchy in social organization. Physica A (2003) 330:653–659Crossref, Google Scholar
- The evolution of complexity in human societies and its mathematical expression. Internat. J. Comparative Soc. (1987) 28:111–128Crossref, Google Scholar
- Nonequilibrium phase transition in a model for social influence. Phys. Rev. Lett. (2000) 85:3536–3539Crossref, Google Scholar
- Complexification (1994) (Abacus, London) Google Scholar
- Modeling the size of wars: From billiard balls to sandpiles. Amer. Poli. Sci. Rev. (2003) 97:135–150Crossref, Google Scholar
- Networks of companies and branches in Poland. Physica A (2007) 383:134–138Crossref, Google Scholar
- Power-law distributions in empirical data. (2007) . Accessed September 23, 2009, http://arxiv. org/abs/0706.1062v2Google Scholar
- Scaling behaviour in the number of criminal acts committed by individuals. J. Stat. Mech.: Theory and Exper. (2004) . http://www.iop.org/EJ/abstract/1742-5468/2004/07/P07003/JSTATCrossref, Google Scholar
- Predator-prey dynamics and movement in fractal environments. Amer. Naturalist (2002) 160:119–134Crossref, Google Scholar
- Bipartite produce-consumer networks and the size distribution of firms. Phys. A (2006) 363:359–366Crossref, Google Scholar
- True reason for Zipf's law in language. Phys. A (2005) 358:545–550Crossref, Google Scholar
- The strategy-specific nature of improvement: The power law applies by strategy within task. Psych. Sci. (1998) 9:1–7Crossref, Google Scholar
- Networks of scientific papers. Science (1965) 149:510–515Crossref, Google Scholar
- Hollywood Economics (2003) (Routledge, New York) Google Scholar
- Fifteen minutes of fame: The dynamics of information access on the web. (2005) . http://mokk.bme.hu/archive/15fame_pr2005Google Scholar
- Information technology in practice of organising: Meeting fragmentation and interdependence by the incremental political delivery of information systems in financial services. (2005) . Unpublished Ph.D. dissertation, School of Management, University of Southampton, Southampton, UKGoogle Scholar
- Information exchange and the robustness of organizational networks. Proc. Natl. Acad. Sci. USA (2003) 100:12516–12521Crossref, Google Scholar
- Explaining complex organizational dynamics. Organ. Sci. (1999) 10:358–372Link, Google Scholar
- Evolution of Networks (2003) (Oxford University Press, Oxford, UK) Crossref, Google Scholar
- Global terrorism follows a power law. Physicsweb (2005) February):1–2 http://physicsweb.org/articles/news/9/2/6/1Google Scholar
- Economist, The The nimble sumo. (2007) August 4):57Google Scholar
- The Wal-Mart you don't know. FastCompany (2003) December). http://www.fastcompany.com/magazine/77/walmart.htmlGoogle Scholar
- Self-organised criticality—What it is and what it isn't. Stud. History Philos. Sci. (2003) 34:613–632Crossref, Google Scholar
- Zipf law in firms bankruptcy. Physica A (2004) 337:219–230Crossref, Google Scholar
- On the size distribution of firms: Additional evidence from the G7 countries. Physica A (2003) 324:117–123Crossref, Google Scholar
- Innovation and network structural dynamics: Study of the alliance network of a major sector of the biotechnology industry. Res. Policy (2005) 34:1457–1475Crossref, Google Scholar
- , Pines D. The concept of the institute. Emerging Synthesis in Science (1988) (Addison-Wesley, Boston, MA) 1–15Google Scholar
- , Curzio A. Q., Fortis M. What is complexity? Complexity and Industrial Clusters. (2002) (Physica-Verlag, Heidelberg, Germany) 13–24Crossref, Google Scholar
- Bad management theories are destroying good management practices. Acad. Management Learn Ed. (2005) 4:75–91Crossref, Google Scholar
- There is a risk-return trade-off after all. J. Financial Econom. (2005) 76:509–548Crossref, Google Scholar
- The Tipping Point: How Little Things Can Make a Big Difference (2000) (Little, Brown, Boston) Google Scholar
- Million-dollar Murray. The New Yorker (2006) 82(February 13):96Google Scholar
- Fitness and inequality in an increasing returns world. (2009) . Working paper, UCLA Anderson School of Management, Los Angeles.Google Scholar
- The Unshackled Organization (1994) (Productivity Press, Portland, OR) Google Scholar
- Econometric Analysis (2002) 5th ed.(Prentice-Hall, Englewood Cliffs, NJ) Google Scholar
- Self-organization in career systems: A view from complexity science. M@n@gement (2001) 5(1):63–88Crossref, Google Scholar
- Frequency of earthquakes in California. Bull. Seismo. Soc. Amer. (1944) 34:185–188Google Scholar
- 70 Years of Best Sellers (1967) (Bowker, New York) 1895–1965Google Scholar
- , Haire M. Biological models and empirical histories of the growth of organizations. Modern Organization Theory (1959) (Wiley, New York) 272–306Google Scholar
- Synergetics, An Introduction (1983) 3rd ed.(Springer-Verlag, Berlin) Crossref, Google Scholar
- Synergetics: Introduction and Advanced Topics (2004) (Springer-Verlag, Berlin) Crossref, Google Scholar
- The complex structure of hunter-gatherer social networks. Proc. Royal Soc. London B (2007) 274:2195–2202Crossref, Google Scholar
- Wealth distribution and Pareto's law in the Hungarian medieval society. Physica A (2007) 380:271–277Crossref, Google Scholar
- , Anderson P. W., Arrow K. J., Pines D. The global economy as an adaptive system. The Economy as an Evolving Complex System (1988) 5(Addison-Wesley, Reading, MA) 117–124Google Scholar
- Hidden Order (1995) (Addison-Wesley, Reading, MA) Google Scholar
- , Curzio A. Q., Fortis M. Complex adaptive systems and spontaneous emergence. Complexity and Industrial Clusters. (2002) (Physica-Verlag, Heidelberg, Germany) 24–34Crossref, Google Scholar
- Power-law distributions in cardiac surgeon average volume? (2009) . Working paper, Fuqua School of Business, Duke University, Durham, NCGoogle Scholar
- Strategy as ecology. Harvard Bus. Rev. (2004) 82(3):68–78Google Scholar
- Pareto index induced from the scale of companies. Physica A (2006) 363:367–376Crossref, Google Scholar
- , Renfrew C., Rowlands M., Segraves-Whallon B. A. Organizational structure and scalar stress. Theory and Explanation in Archaeology (1982) (Academic Press, New York) 389–421Google Scholar
- The shape of production functions and the direction of technical change. Quart. J. Economics (2005) 120:517–549Google Scholar
- The Origins of Order (1993) (Oxford University Press, Oxford, UK) Crossref, Google Scholar
- A Guide to Econometrics (2003) 5th ed(MIT Press, Boston) Google Scholar
- Uher das logarithmisch Normale Verteilungsgesetz der Dimensionen der Teilchen hei Zerstuckelung. Commits Rendus (DoLlady) de L'Academie des Sciences de l'URSS (1941) 31:99–101Google Scholar
- Mathematical Recreations (1942) (Norton, New York) Google Scholar
- The Self-Organizing Economy (1996) (Blackwell, Malden, MA) Google Scholar
- Universal features in the growth dynamics of complex organizations. Physical Rev. Lett. (1998) 81:3275–3278Crossref, Google Scholar
- Earning potential in multilevel marketing enterprises. Physica A (2008) 387:4889–4895Crossref, Google Scholar
- Explanations of a biological model of industrial organization. J. Bus. (1962) 35:335–342Crossref, Google Scholar
- New evidence for the power-law distribution of wealth. Physica A (1997) 242:90–94Crossref, Google Scholar
- Complexity: Life at the Edge of Chaos (1992) (University of Chicago Press, Chicago) Google Scholar
- The web of human sexual contacts. Nature (2001) 411 :907–908Crossref, Google Scholar
- Predictability: Does the flap of a butterfly's wings in Brazil set off a tornado in Texas? (1972) . Presentation, Meeting of the American Association for the Advancement of Science, Washington, DCGoogle Scholar
- The frequency distribution of scientific productivity. J. Washington Acad. Sci. (1926) 16:317–323Google Scholar
- , Clegg S. R., Hardy C., Lawrence T., Nord W. Complexity science and organizational studies. Handbook of Organizational Studies (2006) 2nd ed.(Sage, Thousand Oaks, CA) 165–214Crossref, Google Scholar
- Thinking in Complexity (2007) 5th ed.(Springer-Verlag, New York) Google Scholar
- Extreme Financial Risks: From Dependence to Risk Management (2006) (Springer-Verlag, Berlin) Google Scholar
- The variation of certain speculative prices. J. Bus. (1963a) 36:394–419Crossref, Google Scholar
- New methods in statistical economics. J. Political Econom. (1963b) 71:421–440Crossref, Google Scholar
- The Fractal Geometry of Nature (1982) (Freeman, New York) Google Scholar
- The (Mis)Behavior of Markets (2004) (Profile, London) Google Scholar
- An Introduction to Econophysics (2000) (Cambridge University Press, Cambridge, UK) Google Scholar
- Comment on Van De Ven and Johnson's “engaged scholarship”: Nice try, but…. Acad. Mgmt. Rev. (2006) 31:822–829Crossref, Google Scholar
- Using Pareto-based science to enhance knowledge for practical relevance. (2007) . Presentation, Third Annual Organization Studies Summer Workshop, June 7–9, Rethymno, GreeceGoogle Scholar
- , Moreno M. J. L. When organizations and ecosystems interact: Toward a law of requisite fractality in firms. Chaos and Complexity in Organizations and Society (2009) (UNESA, Madrid, Spain) . ForthcomingGoogle Scholar
- Introduction to Quantitative Aspects of Social Phenomena (1974) (Gordon and Breach, New York) Google Scholar
- Vikram Pandit, Citigroup's chess master. Online Financial News (2008) 8(May). http://www.efinancialnews.com/homepage/content/2450595389Google Scholar
- Policy analysis from first principles. Proc. Natl. Acad. Sci. USA (2002) 99(Suppl. 3):7267–7274Crossref, Google Scholar
- Emergent traffic jams. Physics Rev. E (1995) 51:2909–2918Crossref, Google Scholar
- , Anderson J. R. Mechanisms of skill acquisition and the law of practice. Cognitive Skills and Their Acquisition (1981) (Erlbaum, Hillsdale, NJ) 1–55Google Scholar
- The structure of scientific collaboration networks. Proc. Natl. Acad. Sci. USA (2001) 98:404–409Crossref, Google Scholar
- Power laws, Pareto distributions and Zipf's law. Contem. Phys. (2005) 46:323–351Crossref, Google Scholar
- Exploring Complexity: An Introduction (1989) (Freeman, New York) Google Scholar
- Niche Construction (2003) (Princeton University Press, Princeton, NJ) Google Scholar
- Power law distribution of the duration and magnitude of recessions in capitalist economies breakdown of scaling. Physica A (2001) 293:573–582Crossref, Google Scholar
- Knowledge and cognition in the social sciences: Modeling with low cognition agents. (2005) Presentation, Conference on Human Complex SystemsMay 19Lake Arrowhead, CAGoogle Scholar
- Cours d'Economie Politique (1897) (Rouge and Cie, Paris) Google Scholar
- Riding the wave: An integrative model of merger and acquisition patterns. (2009) . Working paper. Katz Graduate School of Business, University of Pittsburgh, PittsburghGoogle Scholar
- Influence of saving propensity on the power-law tail of the wealth distribution. Physica A (2006) 369:723–736Crossref, Google Scholar
- , Miller W., Vingron M., Istrail S., Pevzner P., Waterman M. Transforming men into mice. Proceedings of the 7th Annual International Conference on Research in Computational Molecular Biology (2003) (ACM Press, New York) 247–256Crossref, Google Scholar
- Food Webs (1982) 2nd ed(University of Chicago Press, Chicago) Crossref, Google Scholar
- Similarities between the growth dynamics of university research and of competitive economic activities. Nature (1999) 400:433–437Crossref, Google Scholar
- Fractionally integrated process for transition economics. Physica A (2006) 362:465–470Crossref, Google Scholar
- Organizational Change and Innovation Processes: Theory and Methods for Research (2000) (Oxford University Press, New York) Google Scholar
- Network dynamics and field evolution. Amer. J. Socio. (2005) 110:1132–1205Crossref, Google Scholar
- The commonness, and rarity, of species. Ecology (1948) 29:254–283Crossref, Google Scholar
- An Introduction to Thermodynamics of Irreversible Processes (1955) (Thomas, Springfield, IL) Google Scholar
- The End of Certainty (1997) (Free Press, New York) Google Scholar
- Power law for the duration of recession and prosperity in Latin American countries. Physica A (2008) 397:6330–6336Crossref, Google Scholar
- Robust Regression and Outlier Detection (1987) (Wiley, New York) Crossref, Google Scholar
- Do larger firms have more interfirm relationships? Physica A (2007) 383:158–163Crossref, Google Scholar
- Wal-Mart lobbying up 60 percent in 2007. Associated Press (2008) March 7Google Scholar
- Self-organized criticality and economic fluctuations. American Econom. Rev. (1994) 84:417–421Google Scholar
- Self-Organization and Dissipative Structures (1981) (University of Texas Press, Austin) Google Scholar
- Are living beings in a state of self-organized criticality? A new interpretation of data on work incapacity due to low back pain. Medical Hypotheses (2004) 62:458–461Crossref, Google Scholar
- Fractals, Chaos, Power Laws (1991) (Freeman, New York) Google Scholar
- The architecture of complexity. Proc. Amer. Philos. Soc. (1962) 106:467–482Google Scholar
- Scaling laws of marine predator search behaviour. Nature (2008) 451:1098–1103Crossref, Google Scholar
- On the fractal nature of ecological and macroevolutionary dynamics. Fractals (2001) 9:1–16Crossref, Google Scholar
- Power laws of wealth, market order volumes, and market returns. Physica A (2001) 299:188–197Crossref, Google Scholar
- Statistical properties of world investment networks. Physica A (2009) 388:2450–2460Crossref, Google Scholar
- Critical Phenomena in Natural Sciences (2000) (Springer-Verlag, Heidelberg, Germany) Crossref, Google Scholar
- Why Stock Markets Crash? (2003) (Princeton University Press, Princeton, NJ) Google Scholar
- Endogenous versus exogenous shocks in complex networks: An empirical test using book sale rankings. Phys. Rev. Lett. (2004) 93(22). http://link.aps.org/ doi/10.1103/PhysRevLett.93.228701Crossref, Google Scholar
- Correlation in business networks. Physica A (2006) 370:151–155Crossref, Google Scholar
- Managing Chaos (1992) (Kogan Page, London) Google Scholar
- Scale invariance and universality of economic fluctuations. Physica A (2000) 283:31–41Crossref, Google Scholar
- Scaling behaviour in the growth of companies. Nature (1996) 379:804–806Crossref, Google Scholar
- A research note on deriving the square-cube law of formal organizations from the theory of time-minimization. Soc. Forces (1983) 61:847–854Crossref, Google Scholar
- The Extended Organism (2000) (Harvard University Press, Cambridge, MA) Google Scholar
- Knowledge for theory and practice. Acad. Management Rev. (2006) 31:809–821Crossref, Google Scholar
- Six Degrees: The Science of a Connected Age (2003) (Norton, New York) Google Scholar
- Everybody else is: Networks, power laws, and peer contagion in the aggressive recess behavior of elementary school boys. Nonlinear Dynam. Psych. Life Sci. (2005) 9:155–173Google Scholar
- Where Medicine Went Wrong (2006) (World Scientific, Singapore) Crossref, Google Scholar
- The average person is truly exceptional: Where medicine went wrong. 17th Annual Conf. Society for Chaos Theory in Psych. and Life Sciences (2007) (August 28)(Chapman University, Anaheim, CA) Crossref, Google Scholar
- The Lure of Modern Science: Fractal Thinking (1995) (World Scientific, Singapore) Crossref, Google Scholar
- Life's universal scaling laws. Phys. Today (2004) 57(9):36–42Crossref, Google Scholar
- A general model for the origin of allometric scaling laws in biology. Science (1997) 276(4):122–126Crossref, Google Scholar
- Time Series (1949) (MIT Press, Cambridge, MA) Google Scholar
- In the Beat of a Heart: Life, Energy, and the Unity of Nature (2006) (National Academy Press, New York) Google Scholar
- “Smart parts” logistics systems as complex adaptive systems. Int. J. Phys. Distrib. Logist. Mgmt. (2008) 38:102–125Crossref, Google Scholar
- Vertical transmission of culture and the distribution of family names. Physica A (2001) 295:1–8Crossref, Google Scholar
- Using “power curves” to assess industry dynamics. McKinsey Quart. (2008) November):1–6Google Scholar
- Zipf distribution in top Chinese firms and an economic explanation. Physica A (2009) 388:2020–2024Crossref, Google Scholar
- Human Behavior and the Principle of Least Effort (1949) (Hafner, New York) Google Scholar

