Organizations as Algorithms: A New Metaphor for Advancing Management Theory

Abstract

AbstractAccording to the ‘Point’ essay, management research's reliance on corporate data threatens to replace objective theory with profit‐biased ‘corporate empiricism’, undermining the scientific and ethical integrity of the field. In this ‘Counterpoint’ essay, we offer a more expansive understanding of big data and algorithmic processing and, by extension, see promising applications to management theory. Specifically, we propose a novel management metaphor: organizations as algorithms. This metaphor offers three insights for developing innovative, relevant, and grounded organization theory. First, agency is distributed in assemblages rather than being solely attributed to individuals, algorithms, or data. Second, machine‐readability serves as the immutable and mobile base for organizing and decision‐making. Third, prompting and programming transform the role of professional expertise and organizational relationships with technologies. Contrary to the ‘Point’ essay, we see no theoretical ‘end’ in sight; the organization as algorithm metaphor enables scholars to build innovative theories that account for the intricacies of algorithmic decision‐making.