Homeostasis and control systems: the intelligent organisation
The paper provides a conceptual discussion of the firm interpreted as living intelligent being, similar to a biological cell in the economic tissue. By conceptually developing the analogy, the paper discusses how the concept of homeostasis can help interpret the firm’s control system, as aimed at recovering an equilibrium, after shocks producing unbalances. The paper further discusses the conditions of internal equilibrium and the interdependencies with the external environment. Finally, the paper uses the concept of set point as value (or index) for different quantitative and/or financial parameters within the firm, which can be used to measure the equilibrium for each stage of the firm life cycle.
Keywords: Control Systems, Homeostasis, Internal Equilibrium