From Gaussian to Paretian Thinking: Causes and Implications of Power Laws in Organizations

成果类型:
Review
署名作者:
Andriani, Pierpaolo; McKelvey, Bill
署名单位:
Durham University; University of Salento; University of California System; University of California Los Angeles
刊物名称:
ORGANIZATION SCIENCE
ISSN/ISSBN:
1047-7039
DOI:
10.1287/orsc.1090.0481
发表日期:
2009
页码:
1053-1071
关键词:
pareto power law Gaussian statistics oganization average extreme events scale-free theory
摘要:
Although normal distributions and related current quantitative methods are still relevant for some organizational research, the growing ubiquity of power laws signifies that Pareto rank/frequency distributions, fractals, and underlying scale-free theories are increasingly pervasive and valid characterizations of organizational dynamics. When they apply, researchers ignoring power-law effects risk drawing false conclusions and promulgating useless advice to practitioners. This is because what is important to most managers are the extremes they face, not the averages. We show that power laws are pervasive in the organizational world and present 15 scale-free theories that apply to organizations. Next we discuss research implications embedded in Pareto rank/frequency distributions and draw statistical and methodological implications.