Punctuated equilibrium: Reconciling theory of revolutionary and incremental change

Using Simon's concept of nested hierarchies, this paper advances a new synthesis for understanding how and why the discontinuous change processes of punctuated equilibrium may occur in socio-economic settings. A. key concept is the nested, multilevel organization of 'deep structure', the order in a system. This includes culture, technology, operating routines, control systems, organizational structure, resources and distributions of power. Using a modified evolutionary process, change is triggered when a disturbance disconfigures one or more levels of the system's deep structure. New variations of deep structure, constrained by more fundamental levels, emerge as deep structure reconfigures. The variations are sorted through competitive selection and other non-competitive processes. The variations are retained as part of the reconfigured deep structure. The concept of a nested, multi-level deep structure explains a continuum of change. Incremental change occurs when only the more marginal levels of deep structure are affected. Revolutionary change occurs when the fundamental levels of deep structure reconfigure, as do all more marginal levels nested within them. Copyright (C) 1999 John Wiley & Sons, Ltd.