# complexity theory

### See Also

### Definition

Complexity theory enables understanding the realities of the evolutionary, dynamic, and complex nature of organizations, businesses, and economics. This understanding is necessary to develop an evolving organization capable of producing and sustaining a competitive advantage. Understanding complexity means it is *explainable*, not that complex systems are *predictable*, whether unpredictable due to the complexity itself or that the system is truly indeterminate.

__Chaos theory, systems theory, and complexity__ --

Chaotic systems are deterministic. Complexity theory is about systems that can learn, like business organizations. Thus the term 'complex adaptive system' describes organizations. Stacey (2000, pp 209 - 210) posits the notion that systems thinking is an inadequate 'source domain' for understanding business organizations and prefers to tap directly into complexity as the source for analogy - thinking of organizations as *complex responsive processes* instead of *complex adaptive systems*.

There does not appear to be any standard for how systems, chaos, and complexity theory fit together. Complexity theory can be thought to fit within the umbrella of

Complexity theory certainly does apply to areas of science and study where