Development of autopoietic economic structures in the Baltic states: analysis of factors

  • Mangirdas Morkunas Mykolas Romeris University
  • Viktorija Skvarciany Vinius Gediminas Technical University
  • Jelena Titko University of Economics and Culture


Research background: Since the introduction of the concept in 1972 Autopoiesis has enjoyed great popularity among academicians representing various fields of science. However, the number of studies devoted to the investigation of factors that have an impact on the formation of autopoietic economic structures is quite limited. This paper addresses the gap in scientific research on autopoiesis of economic structures in small open markets, specifically in the Baltic States.
Purpose of the article: The paper aims to identify and evaluate factors that turn on self-organization mechanisms of autopoietic economic structures in the Baltic States, in particular in Latvia.
Methods: Expert survey was used to identify the most important factors affecting the for-mation of meso-economic entities in the Baltic States. The factors’ assessments provided by seven experts were analyzed. Analytic Hierarchy Process (AHP) with fuzzy numbers was employed to process the data. Two different scales of evaluation (inverse linear and balanced) were used.
Findings & Value added: The factors influencing the process of formation of business groups were evaluated by experts. Research results allow for making conclusions regarding the causes of the business integration, and impact of diversified integrated business structures on the country's business system in Central Europe.


Alaa, G. (2009). Derivation of factors facilitating organizational emergence based on complex adaptive systems and social autopoiesis theories. Complexity and Organization, 11(1).
Allen, M., & Friston, K. J. (2016). From cognitivism to autopoiesis: towards a computational framework for the embodied mind. Synthese, First online. doi: 10.1007/s11229-016-1288-5.
Bich, L. (2012). Complex emergence and the living organization: an epistemiological framework for biology. Synthese, 185(2). doi: 10.1007/s11229-010-9722-6.
Brocklesby, J. (2012). Using the viable systems model to examine multi-agency arrangements for combatting transnational organised crime. Journal of the Operational Research Society, 63(3). doi: 10.1057/jors.2011.43.
Buchanan, I. C. (2007). Emerging giants: building world-class companies in developing countries. Harvard Business Review, 85(4).
Carney, M., Gedajlovic, E. C., Heugens, P., Van Essen, M., & Van Oosterhout, J. (2011). Business group affiliation, performance, context, and strategy: a meta-analysis. Academy of Management Journal, 54(3). doi: 10.5465/AMJ.2011 .61967812.
Chang, S.-J., Chung, Ch.-N., & Mahmood, I. P. (2006). When and how does business group affiliation promote firm innovation? A tale of two emerging economies. Organization Science, 17(5). doi: 10.1287/orsc.1060.0202.
Chettiparamb, A. (2007). Re-conceptualizing public participation in planning: a view through autopoiesis. Planning Theory, 6(3). doi: 10.1177/1473095207082034.
Claessens, S., Feijend, E., & Laevena, L. (2008). Political connections and preferential access to finance: the role of campaign contributions. Journal of Financial Economics, 88(3). doi: 10.1016/j.jfineco.2006.11.003.
Cooper, M. J., Gulen, H., & Ovtchinnikov, A. V. (2010). Corporate political contributions and stock returns. Journal of Finance, 65(2). doi: 10.1111/j.1540-6261.2009.01548.x.
Dittus, R., & Vásquez, C. (2016). Opening autopoiesis: implications for the study of organizational communication. Cinta De Moebio, 52. doi: 10.4067/S0717-554X2016000200002.
Duanmu, J. L. (2012). Firm heterogeneity and location choice of Chinese multinational enterprises (MNEs). Journal of World Business, 47(1). doi: 10.1016/j.jwb.2010.10.021.
Duncan, J. (2010). A critical consideration of executive orders: glimmerings of autopoiesis in the executive role. Vermont Law Review, 333.
Ferrary, M. (2011). Specialized organizations and ambidextrous clusters in the open innovation paradigm. European Management Journal, 29(3). doi: 10.1016/j.emj.2010.10.007.
Franek, J., & Kresta, A. (2014). Judgment scales and consistency measure in AHP. Procedia Economics and Finance, 12. dpi: 10.1016/S2212-5671(14)00332-3.
Goepel, K. D. (2013). Implementing the analytic hierarchy process as a standard method for multi-criteria decision making in corporate enterprises – a new AHP excel template with multiple inputs. Proceedings of the International Symposium on the Analytic Hierarchy Process. Retrieved from .pdf.
Goldspink, Ch., & Kay, R. (2003). Organizations as self-organizing and sustaining systems: a complex and autopoietic systems perspective. International Journal of General Systems, 32 (5). doi: 10.1080/0308107031000135017.
Granovetter, M. (1995). Coase revisited: business groups in the modern economy. Industrial and corporate change, 4(1). doi: 10.1093/icc/4.1.93.
Granovetter, M. (2010) Business groups and social organization. In N. J. Smelser & R. Swedberg (Eds.). The Handbook of Economic Sociology. Princeton University Press. doi: 10.1515/9781400835584.429.
Gregory, A. (2006). The state we are in: insights from autopoiesis and complexity theory. Management Decision, 44(7). doi: 10.1108/002517406106 80613.
Guriev, S., & Rachinsky, A. (2005). The role of oligarchs in Russian capitalism. Journal of Economic Perspectives, 19. doi: 10.1257/0895330053147994.
Ishizaka, A., & Labib, A. (2011). Review of the main developments in the analytic hierarchy process. Expert Systems with Applications, 38(11). doi: 10.1016/j.eswa.2011.04.143.
Jackson, T. W. (2007). Applying autopoiesis to knowledge management in organisations. Journal of Knowledge Management, 11(3). doi: 10.1108/ 13673270710752126.
Khan, T., & Gray, R. (2016). Accounting, identity, autopoiesis. Meditari Accountancy Research, 24(1). doi: 10.1108/MEDAR-06-2015-0032.
Khanna, T., & Yafeh, Y. (2007). Business groups in emerging markets: paragons or parasites?. Journal of Economic Literature, 45(2). doi: 10.1257/jel.45.2.331.
Khanna, T., & Rivkin, J. W. (2001). Estimating the performance effects of business groups in emerging markets. Strategic management journal, 22(1). doi: 10.1002/1097-0266(200101)22:1<45::AID-SMJ147>3.3.CO;2-6.
Knudsen, M. P. (2007). The relative importance of interfirm relationships and knowledge transfer for new product development success. Journal of Product Innovation Management, 24(2). doi: 10.1111/j.1540-5885.2007.00238.x.
Ma, D., & Zheng, X. (1991). 9/9-9/1 Scale Method of AHP. In 2nd Int. Symposium on AHP.
Mahmood, I.P., & Lee, Ch-Y. (2004). Business groups: entry barrier–innovation debate revisited. Journal of Economic Behavior & Organization, 54(4). doi: 10.1016/j.jebo.2002.12.003.
Masulis, R., W., Pham, P., K., & Zein, J. (2009). Family business groups around the world: costs and benefits of pyramids. Working Paper. Owen Graduate School of Management, Vanderbilt University, 58.
Maturana, H. R., & Varela, F. J. (1980). Autopoiesis and cognition: the realization of the living. Springer. doi: 10.1007/978-94-009-8947-4.
Meyer, K. E., Estrin, S., Bhaumik, S. K., & Peng, M. W. (2009). Institutions, resources, and entry strategies in emerging economies. Strategic Management Journal, 30(1). doi: 10.1002/smj.720.
Mirazo, K., & Moreno, A. (2004). Basic autonomy as a fundamental step in the synthesis of life. Artificial life, 10(3). doi: 10.1162/1064546041255584.
Morck, R., Wolfenzon, D., & Yeung, B. (2005). Corporate governance, economic entrenchment, and growth. Journal of economic literature, 43(3). doi: 10.1257/002205105774431252.
Morkunas. M. (2017). Lietuvos verslo grupių formavimosi veiksnių vertinimas. Submitted to Mykolas Romeris university In partial fulfillment of the Requirement for the degree of Doctor of Philosophy in Management. Retrieved from /content.
Nobles, R., Schiff, D., & Teubner, G. (2002). The autonomy of law: an introduction to legal autopoeisis. Oxford: Oxford University Press.
Pina Mendoza, L. M. (2016). Autopoiesis in the innovative university teacher. Agroindustria Sociedad Y Ambiente Asa, 1(6).
Priban, J. (2015). Power in sovereignty and its self-legitimation: on the autopoietic semantics and contingency of popular sovereignty. International Journal of Law in Context, 11(4).
Radosavljevic, M. (2008). Autopoiesis vs. social autopoiesis: critical evaluation and implications for understanding firms as autopoietic social systems. International Journal of General Systems, 37(2). doi: 10.1080/03081070701251018.
Rosenberg, M. (2003). Constructing autopoeisis: the architectural body in light of contemporary cognitive science. Interfaces, 21/22.
Salo, A. A., & Hämäläinen, R. P. (1997). On the measurement of preferences in the analytic hierarchy process. Journal of Multi-Criteria Decision Analysis, 6. doi: 10.1002/(SICI)1099-1360(199711)6:6<309::AID-MCDA163>3.0.CO;2-2.
Thacker, S. C. (2006). Big business, the state, and free trade. constructing coalitions in Mexico. Boston University.
van Laarhoven, P. J. M., & Pedrycz, W. (1983). A fuzzy extension of Saaty’s priority theory. Fuzzy Sets and Systems, 11(1–3). doi: 10.1016/S0165-0114(83)80082-7.
Vásquez, C., & Benavente, R. D. (2015). Revisiting autopoiesis studying the constitutive dynamics of organization as a system of narratives. Management Communication Quarterly, 30(2). doi: 10.1177/0893318915620492.
Zeleny, M. (2010). Machine/organism dichotomy and free-market economics: crisis or transformation? Human Systems Management, 29.
Zhang, N., Zhou, K., & Du, X. (2017). Application of fuzzy logic and fuzzy AHP to mineral prospectivity mapping of porphyry and hydrothermal vein copper deposits in the Dananhu-Tousuquan island arc, Xinjiang, NW China. Journal of African Earth Sciences, 128. doi: 10.1016/j.jafrearsci.2016.12.011.
How to Cite
Morkunas, M., Skvarciany, V., & Titko, J. (2017). Development of autopoietic economic structures in the Baltic states: analysis of factors. Equilibrium. Quarterly Journal Of Economics And Economic Policy, 12(2), 319-338. doi:10.24136/eq.v12i2.17