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      System ComplexityRemove System Complexity →

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      • October 2010 (Revised December 2015)
      • Supplement

      Toyota Motor Corporation: 1990-2010

      By: Roy D. Shapiro and Stephanie van Sice
      This case follows Toyota's remarkable growth and geographic expansion from 1990 to 2010 and, in the recalls of 2009 and 2010, poses questions about the impact of that growth. Issues of increasing technological complexity also play a part. View Details
      Keywords: Growth and Development; Problems and Challenges; Expansion; Complexity; Technology; Auto Industry
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      Shapiro, Roy D., and Stephanie van Sice. "Toyota Motor Corporation: 1990-2010." Harvard Business School Supplement 611-035, October 2010. (Revised December 2015.)
      • August 2010 (Revised March 2012)
      • Supplement

      The Dow Acquisition of Rohm and Haas (E)

      By: Jay W. Lorsch and Melissa Barton
      Dow completed the acquisition of Rohm and Haas and escaped a battle in a Delaware courtroom View Details
      Keywords: Mergers and Acquisitions; Legal Liability; Managerial Roles; Complexity
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      Lorsch, Jay W., and Melissa Barton. "The Dow Acquisition of Rohm and Haas (E)." Harvard Business School Supplement 411-005, August 2010. (Revised March 2012.)
      • January 2010 (Revised December 2011)
      • Case

      Jiamei Dental: Private Health Care in China

      By: William C. Kirby and G.A. Donovan
      With the recent announcement from the Chinese government that the country's healthcare system was going to undergo reform, Jiamei Dental Chairman Liu Jia wondered what that meant for his 15 year-old dental clinic business. Founded in 1993, Jiamei Dental Medical... View Details
      Keywords: Private Sector; Economic Slowdown and Stagnation; Entrepreneurship; Governing Rules, Regulations, and Reforms; Policy; Health Care and Treatment; Private Ownership; Partners and Partnerships; Competition; Expansion; Health Industry; China
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      Kirby, William C., and G.A. Donovan. "Jiamei Dental: Private Health Care in China." Harvard Business School Case 910-404, January 2010. (Revised December 2011.)
      • January 2010 (Revised August 2010)
      • Background Note

      Advanced Leadership Note: An Institutional Perspective and Framework for Managing and Leading

      By: Rosabeth M. Kanter and Rakesh Khurana
      Large-scale societal issues increasingly appear on the agenda of business leaders, including poverty, health, education, business-government relations, and the degradation of the environment. These problems are not entirely new, but the forces of globalization and the... View Details
      Keywords: Change Management; Framework; Global Range; Leadership; Business and Stakeholder Relations; Social Enterprise; Social Issues; Complexity
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      Kanter, Rosabeth M., and Rakesh Khurana. "Advanced Leadership Note: An Institutional Perspective and Framework for Managing and Leading." Harvard Business School Background Note 410-076, January 2010. (Revised August 2010.)
      • 2010
      • Chapter

      Leadership in a Globalizing World

      By: Rosabeth Moss Kanter
      In this chapter, world-renowned business expert, author, and Harvard Business School professor Rosabeth Moss Kanter asks the question, "Is leadership different in a globalizing world--one of broadening horizons and burgeoning sources of ideas and supplies--than in... View Details
      Keywords: Risk and Uncertainty; Globalized Firms and Management; Leadership; Research; Complexity; Diversity
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      Kanter, Rosabeth Moss. "Leadership in a Globalizing World." Chap. 20 in Handbook of Leadership Theory and Practice, edited by Nitin Nohria and Rakesh Khurana. Harvard Business Press, 2010.
      • 2010
      • Working Paper

      The Architecture of Complex Systems: Do Core-periphery Structures Dominate?

      By: Alan MacCormack, Carliss Y. Baldwin and John Rusnak

      Any complex technological system can be decomposed into a number of subsystems and associated components, some of which are core to system function while others are only peripheral. The dynamics of how such "core-periphery" structures evolve and become embedded in a... View Details

      Keywords: Innovation and Management; Product Design; Practice; Core Relationships; Software; Information Technology Industry
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      MacCormack, Alan, Carliss Y. Baldwin, and John Rusnak. "The Architecture of Complex Systems: Do Core-periphery Structures Dominate?" Harvard Business School Working Paper, No. 10-059, January 2010.
      • 2010
      • Working Paper

      The Mirroring Hypothesis: Theory, Evidence and Exceptions

      By: Carliss Y. Baldwin
      The mirroring hypothesis predicts that the organizational patterns of a development project (e.g. communication links, geographic collocation, team and firm co-membership) will correspond to the technical patterns of dependency in the system under development. Scholars... View Details
      Keywords: Infrastructure; Product Design; Organizational Design; Practice; Groups and Teams; Social and Collaborative Networks; Information Technology
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      Baldwin, Carliss Y. "The Mirroring Hypothesis: Theory, Evidence and Exceptions." Harvard Business School Working Paper, No. 10-058, January 2010. (Revised June 2010.)
      • Article

      Mission-Driven Governance

      By: Raymond Fisman, Rakesh Khurana and Edward Martenson

      The purpose of this paper is to provide a useful, easily applied theory of governance performance. The existing model is fundamentally adversarial, rooted in the paradigm of principal-agent conflict. At its base is an image of governance as a never-ending struggle... View Details

      Keywords: Corporate Governance; Governing and Advisory Boards; Knowledge Management; Standards; Mission and Purpose; Organizational Change and Adaptation; Performance Effectiveness; Performance Evaluation
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      Fisman, Raymond, Rakesh Khurana, and Edward Martenson. "Mission-Driven Governance." Stanford Social Innovation Review 7, no. 3 (Summer 2009).
      • May 2009
      • Case

      Tokyo Electron Ltd.

      By: Willy C. Shih and Andrew A. King
      Tokyo Electron Ltd. operates in a constrained innovation environment, defined by modular boundaries that are long standing in the industry that it serves, the global semiconductor manufacturing industry. While the original motivation for these boundaries was division... View Details
      Keywords: Globalized Markets and Industries; Governance Controls; Technological Innovation; Organizational Change and Adaptation; Boundaries; Manufacturing Industry; Semiconductor Industry
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      Shih, Willy C., and Andrew A. King. "Tokyo Electron Ltd." Harvard Business School Case 609-096, May 2009.
      • January 2009 (Revised June 2014)
      • Supplement

      CityCenter (B): Economics and Delivery

      By: A. Eugene Kohn, John D. Macomber and Ben Creo
      Bill Smith is informed by his general contractor that a key component of the Aria Resort is going to be delayed. Aria is the centerpiece of CityCenter: a $9 billion complex and a bet-the-firm decision for MGM Mirage. Smith must make a decision as to whether to force... View Details
      Keywords: Buildings and Facilities; Decision Choices and Conditions; Construction; Finance; Organizational Structure; Projects; Complexity
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      Kohn, A. Eugene, John D. Macomber, and Ben Creo. "CityCenter (B): Economics and Delivery." Harvard Business School Supplement 209-094, January 2009. (Revised June 2014.)
      • September 2008
      • Article

      Firm Heterogeneity and Credit Risk Diversification

      By: Samuel G. Hanson, M. Hashem Pesaran and Til Schuermann
      This paper examines the impact of neglected heterogeneity on credit risk. We show that neglecting heterogeneity in firm returns and/or default thresholds leads to under estimation of expected losses (EL), and its effect on portfolio risk is ambiguous. Once EL is... View Details
      Keywords: Volatility; Credit; Investment Return; Outcome or Result; Risk and Uncertainty; Loss; Diversification; Complexity; United States
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      Hanson, Samuel G., M. Hashem Pesaran, and Til Schuermann. "Firm Heterogeneity and Credit Risk Diversification." Journal of Empirical Finance 15, no. 4 (September 2008): 583–612.
      • 2008
      • Working Paper

      The Architecture of Platforms: A Unified View

      By: Carliss Y. Baldwin and C. Jason Woodard
      The central role of "platform" products and services in mediating the activities of disaggregated "clusters" or "ecosystems" of firms has been widely recognized. But platforms and the systems in which they are embedded are very diverse. In particular, platforms may... View Details
      Keywords: Digital Platforms; Industry Clusters; Infrastructure; Information Infrastructure; Digital Platforms
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      Baldwin, Carliss Y., and C. Jason Woodard. "The Architecture of Platforms: A Unified View." Harvard Business School Working Paper, No. 09-034, September 2008.
      • July 2008 (Revised March 2010)
      • Case

      McDonald's Plan to Win (A)

      By: Ramon Casadesus-Masanell, Karla Ingrid Gravis and Annette Kristine Rodriguez
      As of 2007, McDonald's had made significant progress on its “Plan to Win,” and the company was rewarded by reaching an all-time high share price. However, McDonald's competitors had expanded beyond the typical fast food giants, such as Wendy's and Burger King, as... View Details
      Keywords: Business Model; Competitive Strategy; Complexity; Supply and Industry; Retail Industry; Food and Beverage Industry
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      Casadesus-Masanell, Ramon, Karla Ingrid Gravis, and Annette Kristine Rodriguez. "McDonald's Plan to Win (A)." Harvard Business School Case 709-419, July 2008. (Revised March 2010.)
      • 2008
      • Working Paper

      Communication (and Coordination?) in a Modern, Complex Organization

      By: Adam M. Kleinbaum, Toby E. Stuart and Michael L. Tushman
      This is a descriptive study of the structure of communications in a modern organization. We analyze a dataset with millions of electronic mail messages, calendar meetings and teleconferences for many thousands of employees of a single, multidivisional firm during a... View Details
      Keywords: Business Conglomerates; Interpersonal Communication; Organizational Structure; Social Issues; Boundaries
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      Kleinbaum, Adam M., Toby E. Stuart, and Michael L. Tushman. "Communication (and Coordination?) in a Modern, Complex Organization." Harvard Business School Working Paper, No. 09-004, July 2008.
      • June 2008
      • Case

      System on a Chip 2008: Global Unichip Corp.

      By: Willy C. Shih, Chintay Shih, Chen-Fu Chien and Yuan-Chieh Chang
      Though much of the semiconductor industry has shifted to a horizontal model, complexity driven by technological evolution is driving a shift in the perceived boundaries in the value chain. Global Unichip sees itself as a "virtual integrated device manufacturer," a... View Details
      Keywords: Customer Value and Value Chain; Horizontal Integration; Vertical Integration; Boundaries; Semiconductor Industry
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      Shih, Willy C., Chintay Shih, Chen-Fu Chien, and Yuan-Chieh Chang. "System on a Chip 2008: Global Unichip Corp." Harvard Business School Case 608-159, June 2008.
      • February 2008
      • Article

      Where Do Transactions Come From? Modularity, Transactions, and the Boundaries of Firms

      By: Carliss Y. Baldwin
      This article constructs a theory of the location of transactions and the boundaries of firms in a productive system. It proposes that systems of production can be viewed as networks, in which tasks-cum-agents are the nodes and transfers—of material, energy and... View Details
      Keywords: Boundaries; Production; Market Transactions; Supply Chain; Management; Cost; Theory; Performance Productivity; Information Management; Complexity
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      Baldwin, Carliss Y. "Where Do Transactions Come From? Modularity, Transactions, and the Boundaries of Firms." Industrial and Corporate Change 17, no. 1 (February 2008): 155–195. (Selected as one of the top twenty articles in the first twenty years of publication, 1992-2011.)
      • December 2007 (Revised July 2010)
      • Case

      Who Killed Bhavani Manjula? A Story of Microfinance in Andhra Pradesh (A)

      By: V. Kasturi Rangan and Katharine Lee
      Keywords: Microfinance; Complexity; Networks; Andhra Pradesh
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      Rangan, V. Kasturi, and Katharine Lee. "Who Killed Bhavani Manjula? A Story of Microfinance in Andhra Pradesh (A)." Harvard Business School Case 508-021, December 2007. (Revised July 2010.)
      • 2007
      • Working Paper

      Competition in Modular Clusters

      By: Carliss Y. Baldwin and C. Jason Woodard
      The last twenty years have witnessed the rise of disaggregated "clusters," "networks," or "ecosystems" of firms. In these clusters the activities of R&D, product design, production, distribution, and system integration may be split up among hundreds or even thousands... View Details
      Keywords: Price; Profit; Digital Platforms; Industry Clusters; Competition; Horizontal Integration; Vertical Integration
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      Baldwin, Carliss Y., and C. Jason Woodard. "Competition in Modular Clusters." Harvard Business School Working Paper, No. 08-042, December 2007.
      • 2007
      • Working Paper

      The Impact of Component Modularity on Design Evolution: Evidence from the Software Industry

      By: Alan MacCormack, John Rusnak and Carliss Y. Baldwin

      Much academic work asserts a relationship between the design of a complex system and the manner in which this system evolves over time. In particular, designs which are modular in nature are argued to be more "evolvable," in that these designs facilitate making... View Details

      Keywords: Product Design; Adaptation; Software; Information Technology Industry
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      MacCormack, Alan, John Rusnak, and Carliss Y. Baldwin. "The Impact of Component Modularity on Design Evolution: Evidence from the Software Industry." Harvard Business School Working Paper, No. 08-038, December 2007.
      • October 2007
      • Article

      The Art of Designing Markets

      By: Alvin E. Roth
      Traditionally, markets have been viewed as simply the confluence of supply and demand. But to function properly, they must be able to attract a sufficient number of buyers and sellers, induce participants to make their preferences clear, and overcome congestion by... View Details
      Keywords: Market Design; Market Participation; Market Transactions; Information Technology; Internet and the Web
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      Roth, Alvin E. "The Art of Designing Markets." Harvard Business Review 85, no. 10 (October 2007): 118–126.
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