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Introducing an Epigenetic Approach for the Study of Internet Industry Groups

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Dynamics of Big Internet Industry Groups and Future Trends

Abstract

The aim of this first chapter is to study how organizations adapt to extremely fast qualitatively significant changes in the environment. As opposed to the prevalent Darwinian approach in which the logic of the phenotype is seen as a slow and moderate adaptation of social organizations to changes, our view focuses on rapid adaptation to quickly changing environments. The analytical framework we put forth in this chapter, through the concept of Epigenetic Economic Dynamics (EED), comes from different fields of knowledge. This concept finds its roots in: (i) new discoveries in molecular biology; (ii) the complexity theory, which is a theoretical framework stemming from very diverse sciences; (iii) current approaches in terms of organizational routines in management; (iv) economic theory on competition and profits; and (v) innovation studies from a Schumpeterian approach.

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Notes

  1. 1.

    Despite part of the current approaches to business routines being based on the complexity theory, we will not develop this point as it goes beyond the objectives set for this book.

  2. 2.

    The biological analogy, following classical Darwinism, has been widespread for several decades. In fact, in the early 1990s some North American economists started a research stream around bioeconomics, from which journals such as the ‘Journal of Bioeconomics’ or the ‘Journal of Evolutionary Economics’ emerged. The biological analogy is, for example, dominant in some areas such as economic geography, within the evolutionary realm. Therefore, when introducing epigenetics, we do not require any legitimacy, as we are acting on an area where Darwinian biology has been widespread for decades.

  3. 3.

    If, for example, we compared the changes that will occur in Internet industry group environments with the recent past, perhaps we should not talk about very fast changes because the current speed of change has become ‘quite normal’.

  4. 4.

    From another perspective, the second law of thermodynamics has one main purpose: Impose a strict world symmetry on the directions of the time axes towards the past and the future (Davies 2002). That is to say, there is asymmetry in both directions, past and future. And the essence of this asymmetry lies in the changes that have taken place. As Davies states (2002: 10) we do not really observe the passage of time, but we are actually observing how the later states of the world differ from earlier states that we still remember. A watch does not really measure the speed with which one event follows another. Therefore, it appears that the flow of time is subjective, not objective (ibid: 11).

  5. 5.

    Folke et al. (2010) develop a concept of resilience, which we believe has a greater scope than the one used by other authors. In their approach, resilience is formulated as the capacity that a complex ‘social ecological system’ has to continuously adapt, which is a more reasonable and less ‘mechanistic vision than others used for the concept, as they are mainly limited to the field of economic geography.

  6. 6.

    See https://www.encodeproject.org/ (last access October 2015).

  7. 7.

    The capacity to transmit epigenetic marking between generations translates as chemical changes in the chromatin structure, which may be greatly determined by environmental factors.

  8. 8.

    See http://www.epigenesys.eu (last access October 2015).

  9. 9.

    In this sense, human cells resort to splicing, producing several proteins with very different functions from the same gene (ENCODE Project).

  10. 10.

    “Given that the entities and processes involved are very different; these common principles will be highly abstract particular domain. For example…, we can generalize principles that apply to all the phenomena, despite major differences in their features. In biology and in the social sciences, the phenomena are so complex that scientists supplement general principles by many more auxiliary and particularistic explanations, thus differentiating these sciences from physics” (Aldrich et al. 2008: 580).

  11. 11.

    The main controversy between Hodgson and Knudsen (2012), Pelikan (2010, 2012) and Levit et al. (2011) centers on the role that replicators play in evolution.

  12. 12.

    The resource-based view of the firm “is enhanced by blending its usual path dependent strategic logic of leverage with a path-breaking strategic logic of change. [It] encounters a boundary condition in high velocity markets where the duration of competitiveness and advantage is inherently unpredictable, and dynamic capabilities are themselves unstable. Here the strategic imperative is not leverage but change” (Eisenhardt and Martin 2000: 1105).

  13. 13.

    We have seen that the epigenome is subject to the influence of the environment. Epigenetic inheritance is related to phenotype plasticity, which supports a Lamarckian interpretation (Jablonka and Lamb 2005).

  14. 14.

    The concepts of ostensive and performative routines are defined in Table 3.

  15. 15.

    These perspectives have often been approached from the literature on open innovation (Chesbrough 2003; Huizingh 2011; Mortara and Minshall 2011; Van de Brande et al. 2009).

  16. 16.

    Disruptive innovations place rapid limitations on what organizations are doing and how they usually carry out their activities (Gómez-Uranga et al. 2013).

  17. 17.

    We consider that alternative approaches such as that introduced by Geels (2002) on technological and sustainability transitions could also be compatible with the EED, in particular when addressing the analysis of the changes in the environment.

  18. 18.

    For an illustration of the main features characterizing items A (environment) and B (epigenetic dynamics) see Gómez-Uranga et al. (2013).

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Correspondence to Jon Mikel Zabala-Iturriagagoitia .

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Gómez-Uranga, M., Zabala-Iturriagagoitia, J.M., Barrutia, J. (2016). Introducing an Epigenetic Approach for the Study of Internet Industry Groups. In: Gómez-Uranga, M., Zabala-Iturriagagoitia, J., Barrutia, J. (eds) Dynamics of Big Internet Industry Groups and Future Trends. Springer, Cham. https://doi.org/10.1007/978-3-319-31147-0_2

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