An Outline of a Descriptive Theory of the Enterprise

Abstract

C. West Churchman seems to have been wrestling with this dilemma of Systems Thinking. On one hand we need a comprehensive understanding of the system under consideration if we are to secure the opportunity to generate ethically sound design. On the other hand, it is not really feasible to secure comprehensive understanding of a system. This essay is a small contribution to the second challenge regarding the design and management of enterprises. The question posed here is: in what terms may an enterprise be conceived if a reasonably comprehensive understanding is to be achieved? The proposed outline of descriptive theory of an enterprise is derived from a French School of Systemics, denoted here as Le Moigne's Systemics, and is supported by several empirical case studies. Its main constituents are the Projective Constructivist Epistemology and the General Systems Theory conceived as a theory of modeling. This derivation has resulted in a set of enterprise concepts (i.e. categories, or constructs) that support the conceptualization of an enterprise. The value of the outlined theory of the enterprise is advanced here in two ways. The proposed theory is compared from a theoretical viewpoint with several other current theories for enterprise description. This is followed by a presentation of an empirical real-life case study and its value for problem identification. Both of these demonstrate that the proposed theory provides a rich and comprehensive understanding of the enterprise in question, which is its very purpose.