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Chaos theory
Book chapter

Chaos theory

Bernard Forgues and Raymond-Alain Thietart
The Palgrave Encyclopedia of Strategic Management
Palgrave Macmillan
01/10/2013

Abstract

Firms can be described as non-linear dynamic systems in that they are home to counteracting forces simultaneously at play. As a consequence, firms or some of their processes can enter a chaotic state. In such a state prediction is impossible, especially at a global scale and in the long run. Closure is still possible as firms may be attracted towards specific configurations. Finally, because contextual conditions are never the same, no similar actions can yield the same result.

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