SME'S SUPPORT AND REGIONAL POLICY IN EU - THE NORTE-LITORAL PORTUGUESE EXPERIENCE



1.1.4 Emergence and Evolution

Many authors refer to the existence of a fundamental tension in the evolution process
of the firm:
exploitation of the current routines versus exploration of new routines; change of
the
technical-economic paradigm versus technical trajectories within a given paradigm. We
are dealing with concepts that identify two types of evolution, a gradualist and a superficial
one, a radical and a deep one.

Seeking to materialise a global explanation for the existing of incremental changes and radical
ones in the socio-economic systems, Wollin (1999) puts emphasis upon the complex
interaction (similar to the concept of ‘structuration’ by Giddens) among three most
determining factors of change:
the environment of the system, the deep structure of the
organisation and the transforming
action of the actors.

It is worth mentioning that beliefs, values, culture, technology, operational routines,
structures, resources, core competencies and power sharing constitute a ‘deep structure’ which
has different branches hierarchically structured. The dynamics of the change is subject to a
complex interaction of factors which unveil the existence of different types of evolution:

“During punctuations, or periods of discontinuous change, it is the most fundamental
levels of deep structure that are reconfiguring, and causing consequent reconfiguration of
more marginal levels in the same branch. Change in the more marginal levels of deep
structure is possible without changing the most fundamental levels, but these changes are
constrained by the fundamental levels.”
(Wollin, 1999:361)

Briefly, it can be said that change may happen at any level (from the fundamental to the
marginal ones) and at any of its dimensions (beliefs, technology, power), from which stems a
wide range of potential changes, from the more superficial, incremental and frequent to the
deeper and rare ones that affect the whole system. The environment is the cause of
disturbances at any level of the ‘deep structure’, whilst originating adjustment behaviours or
new forms of structure (
variety) that are likely to occur. The survival of one of those forms,
considering the sequence of favourable and unfavourable pressures of different types, means
that this variety was embodied in the ‘deep structure’ while bringing along consequences
which will be felt at other levels.

This self-organising ability of hierarchical complex systems is the basis upon rests their
relative stability but it also explains the emergence of crisis. In this sense, the concept of
‘complex system’ gains a new status: “
Creativity and change find a place together with
structure and function in this new scientific paradigm”
(Allen, 1988:118).



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