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The Hypothesis about the Possibility of Using Complex Numbers to Analyze the Continuum of Organizational Changes

Journal: Herald of the Economic Sciences of Ukraine (Vol.39, No. 2)

Publication Date:

Authors : ;

Page : 16-19

Keywords : transaction cost; complex numbers; complex plane of total costs; continuum of organizational change; organizational evolution.;

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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.

Last modified: 2021-03-16 22:22:02