Quantum Strategy Creation by Interlocking Interconnecting Directors in Boards of Directors in Modern Organizations at Time of Globalization

Dimitri O. Ledenyov, Viktor O. Ledenyov
2015 Social Science Research Network  
The research explores a scientific problem on the quantum strategy creation and implementation by the interlocking interconnecting directors in the boards of directors in the modern organizations at the time of globalization, solving the winning virtuous strategy search, the most effective strategy selection and the organizational strategy optimization paradigms. We know that, having the different mindset architectures, the directors in the interlocking interconnecting directors networks in the
more » ... boards of directors in the modern organizations complete the information sensing, filtering, processing, resonant absorption, analysis, strategy decision making processes with the aim to create and implement the most effective optimal winning virtuous organization development strategy, applying the early researched deductive, inductive and abductive logics. We propose that the new quantum strategy can be considered as a most effective optimal winning virtuous organizational strategy, allowing the board of directors to set a right direction vector toward the business development, to establish a necessary actions plan and to reach the sustainable business profitability goals in the economies of the scales and scopes. We explain that the quantum strategy can be formulated, going from: 1) the new quantum logic principles in the Copenhagen interpretation in the quantum mechanics science, 2) the deductive, inductive and abductive logics existing knowledge in the philosophy science, and 3) the modern strategy research findings in the business administration science. We think that the directors in the boards of directors in the complex organizations can implement the quantum strategies with the ultimate goal to build the prosperous organizations in the economies of the scale and scope at the time of the disruptive changes and opportunities by the globalization. JEL code: C0, G21, G24, G30, G34, L1, L4, M2 . PACS numbers: 89.65.Gh, 89.65.-s, 89.75.Fb . Keywords quantum strategy, winning virtuous strategy, strategy creation and implementation, strategy selection logics, strategy decision making, strategy optimization problem, most effective strategy search, quantum/inductive/deductive/abductive logics, board of directors composition, board of directors chairman, interlocking directors networks, boards of directors seats accumulation number, centrality, Freeman degree, Betweenness, information flows measurements, destructive coordination, information absorption, theory of firm, microeconomics, Schrodinger wave function, quantum mechanics, econophysics. Completing a short introduction, let us move forward with a more detailed consideration of research topic and uncover all our research thoughts on the subject of scientific interest comprehensively. Once again, we would like to be focused on the theory of the quantum strategy creation and execution by the interlocking interconnecting directors in the boards of directors in the modern organizations at the time of globalization. Interlocking interconnecting directors in boards of directors in modern organizations at time of globalization Beginning our research discussion, let us make a clear definition on the board of directors: The board of directors in the firm is an organized group of the business administrators, working together to create and execute the business strategy towards the successful business model development, the trade partnership relationships establishment and 4 the commerce interests promotion in time of infinite opportunities and challenges, which are created by the globalization. We could also refer to another possible definition on the board of directors in Ledenyov D O, Ledenyov V O (2015b): "A group of elected appointed directors (institutional agents), who control all the business activities by the management team (corporate agents) toward the firm's business development, constitute a board of directors." The standard board of directors in the firm could be mathematically represented as a two dimensions matrix in Ledenyov D O, Ledenyov V O (2015b)Board of Directors d d d d d d It would also be interesting to refresh the important research theses and propositions on the accurate characterization of the boards of directors in Ledenyov D O, Ledenyov V O (2015b): 6 accurately characterize the overlapping interconnecting interlocking directors networks performance and the director's competence and effectiveness. "The authors propose to use both 1) the transmitted information data-stream measurements, and 2) the existing bit error rate measurements (BER) in the overlapping interconnecting interlocking directors networks in the boards of directors in the firms to We propose to introduce the Quality of Service measurements scale for the directors' competence and effectiveness measurements during their work performance evaluation in the boards of directors in the firms, going from the accurate characterization of the generated, transmitted and received information streams by the director in the boards of directors in the firms over a certain period of time. 3. We do believe that the generated, transmitted, and received information data streams in the interlocking interlinking interconnecting directors' networks have a highly asymmetric nature, because of some reasons. In our opinion, every director has the different education, professional experience, accumulated knowledge base and can allocate the different amounts of time to work at the boards of directors in the firms, hence the director will generate, transmit, receive the various information data streams (the information data flows), resulting in the asymmetric information data streams appearance in the interlocking interlinking interconnecting directors' networks in the boards of directors in the firms. 4. Speaking about the accurate characterization of the overlapping interconnecting interlocking directors networks in the boards of directors in the firms, we would like to emphasis that the conducted empirical research reveals another interesting fact that the positive and negative feedback loops, which can be created by the interlocking directors networks in the boards of directors in the firms, can quite possibly lead to the destructive coordination among the directors in the boards of directors in the firms by eliminating the randomness element and introducing the greater uniformity in the pursuing business strategies (the destructive coordination term is well described in Whitehead (2011, 2014)). Anishenko, Vadivasova, Astakhov (1999), Kuznetsov (2001. We think that the stability of interlocking interconnecting directors' network depends on the nature of stochastic dynamic processes in the interlocking interconnecting directors' network, hence it can be impacted by the election / appointment / introduction of a new directors into the overlapping interconnecting interlocking directors networks in the boards of directors in the firms in the time domain in 6. We would like to mention that the excessive or insufficient levels of the information sensing, information filtering, information processing, information absorption, information analysis by the director may result in the bifurcations and chaos 7 appearances in the frames of a decision making process on the winning virtuous strategy creation in the case of presence of the considered overlapping interconnecting interlocking directors networks in the boards of directors in the firms." Let us remind that the above research is based on the knowledge base on the interlocking interconnecting directors networks in the boards of directors in the publicly traded and nontraded firms and the related scientific topics (in a chronological order) in Moving back to the main topic of our scientific discussion, we would like to suggest that the interlocking interconnecting director in the board of directors in the organization must analyze/observe the organization/business evolution and the economic system evolution, and make the final decision on the quantum strategy, applying the quantum logic, which is the probability based logic in De Let us make the two examples to draw a clear boundary between the probability based logic and the value based logic:
doi:10.2139/ssrn.2704417 fatcat:luhh6l62tzfgpb6u2pzdyqtn5y