The Hypothesis about the Possibility of Using Complex Numbers to Analyze the Continuum of Organizational Changes
Phd in Economic Sciences, Assistant, doctoral candidate
Institute of Industrial Economics of the National Academy of Sciences of Ukraine, Kyiv
Sytnyk Ye. А. (2020). The Hypothesis about the Possibility of Using Complex Numbers to Analyze the Continuum of Organizational Changes. Visnyk ekonomichnoi nauky Ukrainy, 2 (39), рр. 16-19. doi: https://doi.org/10.37405/1729-7206.2020.2(39).16-19
The article is devoted to relationship between organizational component of the nature of the firm and market transactions. Here a hypothesis was put forward about the possibility of using complex numbers to analyze the continuum of organizational changes. The mathematical method in the form of a complex plane of total costs for a quantitative description of communication mechanisms between organizational changes in firms and the market environment was proposed.
The total cost of a corporation or firm can be represented on the complex plane on which the cost values of costs will be plotted on the real axis in the generally accepted, market sense of this term. On the additional, or imaginary, axis there will be special units, understood as units of change in the organizational continuum and, possibly, the projection of transaction costs on the sphere of intra-firm organization.
Herewith, using complex numbers it is possible to change the notation of the so-called. Demsetz formulas, passing from its generally accepted form to the form using a complex number.
Using the proposed model, one can better understand the driving forces of organizational changes in corporations and firms, linking them to transactional and other costs using a complex variable function. This will lead to a new understanding of the relationship between the organizational structure and the technological process during the transformation of resources into a product.
transaction cost, complex numbers, complex plane of total costs, continuum of organizational change, organizational evolution.
- Tsarenko A. S. (2013). Upravleniye organizatsionnymi izmeneniyami: razvitiye teorii i instrumentariya [Management of organizational changes: the development of theory and tools]. Public administration. Electronic bulletin, Issue 39, August [in Russian].
- Belousko M. V. (2006). General theory of economic organization. Organizational evolution of the industrial economy. Donetsk [in Russian].
- Dietrich M. (1994). Transaction Cost Economics and Beyond: Towards a New Economics of the Firm. London: Routledge.
- Andreeva T. E. (2004). Organizational changes: a comparative analysis of the main concepts. Bulletin of St. Petersburg University, Ser. 8, Issue. 2 (No. 16) [in Russian].
- Alchian A., Demsetz H. (1972). Production, Information Costs, and Economic Organization. American Economic Review, Vol. 62, Nо. 5, рр. 777-795.
- Madhok A. (2002). Reassessing The Fundamentals and Beyond: Ronald Coase, the Transaction Cost and Resource-Based Theories of the Firm and the Institutional Structure of Production. Strategic Management Journal, Vol. 23, рp. 535-550.
- Colombo M., Delmastro M. (1999). Some Stylized Facts on Organization and Its Evolution. Journal of Economic Behavior and Organization, Vol. 40, рp. 255-274.
Full Text .pdf