The Epistemology of Enterprises

Michael J. Pennock and William B. Rouse

Systems Engineering, 2016, vol. 19, issue 1, 24-43

Abstract: Enterprises are essential to the sustainment of our modern society. However, they rarely receive the level of attention and rigor that technical systems do. Treating enterprises as systems is a promising approach, but enterprises depend on a substantial social component. The inherent complexity of social systems introduces epistemic limitations that inhibit our ability to model social systems and predict their behavior. Consequently, traditional engineering approaches that rely on prediction and control can be ineffective or misleading when applied to enterprises. In this paper we explore the implications of these epistemic limitations on the engineering of enterprises. We conclude that it is necessary to apply dynamic strategies to mitigate these limitations and adapt enterprise modeling efforts accordingly. The goal with enterprises, in contrast to traditional technical systems, is to influence rather than control. We outline an interdisciplinary research agenda to progress toward this goal.

Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:wly:syseng:v:19:y:2016:i:1:p:24-43

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