| Summary: | Chaos and complexity theory is a special, functionalist systems approach to dealing with complex, dynamic, nonlinear systems. Through treating organizations as complex, with their environments coevolving, nonlinear systems, complexity theory is aimed at creative research of their erratic nature. When an organization is in a state of bounded instability, at the edge of chaos, order and disorder are intertwined, its behavior is irregular and unpredictable but has some pattern. According to the complexity paradigm organizations have to strive to avoid the equilibrium states of stability and instability. They have instead to strive to remain in a state of bounded instability, at the edge of chaos, where they are able to display their full potential for creativity and innovation.
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