Punctuated equilibrium: Reconciling theory of revolutionary and incremental change

Using Simon's concept of nested hierarchies, this paper advances a new synt hesis for understanding how and why the discontinuous change processes of p unctuated 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 syst ems, organizational structure, resources and distributions of power. Using a modified evolutionary process, change is triggered when a disturbance dis configures one or more levels of the system's deep structure. New variation s of deep structure, constrained by more fundamental levels, emerge as deep structure reconfigures. The variations are sorted through competitive sele ction and other non-competitive processes. The variations are retained as p art of the reconfigured deep structure. The concept of a nested, multi-leve l deep structure explains a continuum of change. Incremental change occurs when only the more marginal levels of deep structure are affected. Revoluti onary change occurs when the fundamental levels of deep structure reconfigu re, as do all more marginal levels nested within them. Copyright (C) 1999 J ohn Wiley & Sons, Ltd.