Phase 2's focus was on heterogeneous agents interacting just before the 'edge of chaos' (the 2nd critical value) of imposed tensions. In between the 'edges' of order and chaos is the Region of Emergent Complexity, what Kauffman terms the 'melting' zone (1993, p. 109). Bak (1996) argued that to survive, organisms have to have a capability of staying within the melting zone, maintaining themselves in a state of 'self-organized criticality,' that is, adaptive efficacy. Holland (2002) defined emergent phenomena as multi-level hierarchies, intra-and inter-level causal processes, and nonlinearities. Phase 3 focuses on nonlinearity, scalability, power laws (PLs), the 'butterfly effect', 1 scalability and fractals. Though beginning many decades ago with Pareto (1897), Auerbach (1913) and Zipf (1949), Phase 3 re-focused attention to PL phenomena (Newman 2005; Andriani and McKelvey 2007, 2009), and eventually includes econophysics (West and Deering 1995, Mantegna and Stanley 2000). Econophysics began with Benoit Mandelbrot's focus on stock market crashes (1963). While crashes are negative extreme events, their showing of the PL signature indicates that the markets were free to go up or down without restraint. PLs often appear as indicators of self-organization, emergencein-action, self-organizing economies (Krugman 1996), and the growth of firms, cities and economies (Stanley et al. 1996; Axtell 2001). Various descriptions of how complexity science has been applied to organizations appear in Maguire et al. (2006) Hazy et al. (2007), Allen et al. (2011), Strathern and McGlade (2014). These existing views and theories about how complexity science thinking and concepts apply to organizations and management are more explicitly tested and elaborated in the chapters comprising this Section.
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