Does complexity belong inside the firm, or out?
This theoretical article presents evidence that companies choose to impose complexity on their customers, rather than comprehend system complexity internally. It argues that externalising complexity in this manner is fundamentally different from the externalisation of costs and risks as usually desc...
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2020-01-01
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Series: | Ekonomska Istraživanja |
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Online Access: | http://dx.doi.org/10.1080/1331677X.2019.1625796 |
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doaj-68525f782d2a435eaa961119fe6765872021-04-06T13:27:28ZengTaylor & Francis GroupEkonomska Istraživanja1331-677X1848-96642020-01-013312397240910.1080/1331677X.2019.16257961625796Does complexity belong inside the firm, or out?Fred Phillips0University of New MexicoThis theoretical article presents evidence that companies choose to impose complexity on their customers, rather than comprehend system complexity internally. It argues that externalising complexity in this manner is fundamentally different from the externalisation of costs and risks as usually described in the literature, because its impact is on the customer’s attention, rather than (just) on the customer’s wallet or health. Attention is a limited resource. Thus, exporting complexity should reduce the buyer base, leaving only the buyer segment that will tolerate the drain on their attention. It does not seem to be a tactic that is viable for the long run.http://dx.doi.org/10.1080/1331677X.2019.1625796complexityconsumer psychologyexternalities; marketing |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Fred Phillips |
spellingShingle |
Fred Phillips Does complexity belong inside the firm, or out? Ekonomska Istraživanja complexity consumer psychology externalities; marketing |
author_facet |
Fred Phillips |
author_sort |
Fred Phillips |
title |
Does complexity belong inside the firm, or out? |
title_short |
Does complexity belong inside the firm, or out? |
title_full |
Does complexity belong inside the firm, or out? |
title_fullStr |
Does complexity belong inside the firm, or out? |
title_full_unstemmed |
Does complexity belong inside the firm, or out? |
title_sort |
does complexity belong inside the firm, or out? |
publisher |
Taylor & Francis Group |
series |
Ekonomska Istraživanja |
issn |
1331-677X 1848-9664 |
publishDate |
2020-01-01 |
description |
This theoretical article presents evidence that companies choose to impose complexity on their customers, rather than comprehend system complexity internally. It argues that externalising complexity in this manner is fundamentally different from the externalisation of costs and risks as usually described in the literature, because its impact is on the customer’s attention, rather than (just) on the customer’s wallet or health. Attention is a limited resource. Thus, exporting complexity should reduce the buyer base, leaving only the buyer segment that will tolerate the drain on their attention. It does not seem to be a tactic that is viable for the long run. |
topic |
complexity consumer psychology externalities; marketing |
url |
http://dx.doi.org/10.1080/1331677X.2019.1625796 |
work_keys_str_mv |
AT fredphillips doescomplexitybelonginsidethefirmorout |
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