Advances in Business-Related Scientific Research Journal (ABSRJ) 
Volume 2 (2011), Number 1 
 
 
 
THE UNDERLYING MECHANISM OF EVOLUTION AND 
REVOLUTION DURING THE PROCESS OF ORGANIZATIONAL 
DEVELOPMENT 
Wen-ping Wang* 
School of Economics and Management, Sou heast University, Nanjing t
t
t
China 
wpwang@seu.edu.cn
 
Hai-yan Shan 
School of Economics and Management, Nanjing University of Information Science & 
Technology , Nanjing 
China 
shanhaiyan_1981@126.com
 
Qing-li Da 
School of Economics and Management, Sou heast University, Nanjing 
China 
dqlseunj@126.com
 
Wei-Da Chen 
School of Economics and Management, Sou heast University, Nanjing 
China 
cwd@seu.edu.cn
Abstract  
A systematic understanding of organizational development is critical to strategy research 
because organizational life cycle becomes increasingly shorter. In this paper, a new type of 
evolving model of organizational knowledge system which is comprises by empirical 
knowledge subsystem and revolution knowledge subsystem is constructed. The nature 
between evolution and revolution during the process of organizational development is 
defined. Based on this, the modes of organizational development are classified. The 
mechanism of different modes of organizational development is analyzed. The strategies and 
the opportunities during the process of organizational development are given. Finally, we 
ABSRJ 2(1): 101 
 
Advances in Business-Related Scientific Research Journal (ABSRJ) 
Volume 2 (2011), Number 1 
 
 
verify our proposed theoretical model through the studies of success and failure cases in 
reality. 
Key Words: evolution, revolution, organizational development, knowledge system  
Topic Groups: Change management and organizational development, Organizational 
behavior, Technology and innovation management  
INTRODUCTION 
Change management is the core and hot issues in the field of organization development and 
enterprise growth theory, and the related theoretical studies and practices mainly from such 
three aspects, the change mode of enterprise or organization, the influence factors of 
change and the strategies of change. 
In the research of change mode, Lewin (1951) proposed discontinuous change model, which 
is syllogism of changes: defrost - change - redefrost. Weick & Quinn (1999) revised Lewin's 
point of view, divided change mode of enterprise into gradual mode and mutation mode. 
Larry (1998) proposed evolution and revolution according to the growth of enterprise, the 
evolution is moderate adjustments in order to keep the growth and the revolution is the 
great change in the practice of management. Zhang (2000) pointed that the enterprise that 
both can be integrated organically can be called self-organizing enterprise. Liu (2003, 2004) 
combined the complex system theory with change management, and put forward that 
enterprises should be multi-agent organization and the change process should be along with 
complexity growth in order to adapt to the complexity of external environment.  
In the research of the influence factors of change, many studies think internal and external 
environmental factors affect organizational change, which is completed by the interaction of 
driving force and resistance force (Hu & Wan, 2005). Natural selection assumes that the 
internal and external network of the enterprise and the interaction between them influence 
the change path of the enterprise (Michael & John, 1977; Michael & John, 1984). Jeffrey & 
Gerald (1978) consider that, the distribution of key resources and the control mode of 
organization behavior will cause the change in the organizational behavior. 
In the research of the strategies of change, there are process reengineering, the change of 
organization structure, and the establishment of networked organization, living organization, 
and learning organization. These change practices and theoretical research adapt to the 
development of the knowledge-based enterprise to a great extent.  
However, the high failure rate of change practice demonstrates that the existing theories are 
lack of guidance and explanatory power. For example, the existing research about the 
classification of change mode (revolution and evolution) has not revealed the essential 
characteristics of different change modes. Moreover, it is lack of the research of the 
influence factors of change and intrinsic mechanism based on the characteristics of 
knowledge-based enterprise. To be exactly, what is the essential difference of different 
change modes? What is the decision mechanism of different change modes? What is the 
occurrence and feedback mechanism when the change process and the change of network 
structure and knowledge level are connected together? What is the dynamics theory of 
driving different change modes? These problems are not only the basic problems but also 
the core problems in the research of change management.  
The systematic research of the influence factors of change, change modes and intrinsic 
mechanisms has theoretical significances and practical application values. Following we will 
define the essential difference of different change modes, consider the decision mechanism 
ABSRJ 2(1): 102 
 
Advances in Business-Related Scientific Research Journal (ABSRJ) 
Volume 2 (2011), Number 1 
 
 
of different change modes, analyze the occurrence and feedback mechanism when the 
change process and the change of network structure and knowledge level are connected 
together, and conclude the dynamics theory of driving different change modes.  
In this paper, we mainly reveal the underlying mechanism of evolution and revolution from 
the aspect of knowledge during the process of organizational development. In section 2, a 
new type of evolving model of organizational knowledge system which is comprised by 
empirical knowledge subsystem and revolution knowledge subsystem is constructed. 
Moreover we analyze the stable state of the knowledge system. In section 3, the dynamic 
change of knowledge system and the structure of NIL networks are studied. In section 4, the 
mechanisms of different modes of organizational development are given. In section 5, 
management suggestions of this paper are pointed. Section 6 concludes the paper. 
EVOLVING MODEL OF ORGANIZATIONAL KNOWLEDGE SYSTEM 
The dynamic change process of knowledge-based enterprise is always under the co-
evolution interaction of revolution force and stability force. The new and heterogeneity 
knowledge introduced during the growing process of knowledge-based enterprise form the 
revolutionary knowledge subsystem. And experience knowledge transformed by stocking 
knowledge after the entering of revolutionary knowledge forms the empirical knowledge 
subsystem. The revolutionary knowledge subsystem and the empirical knowledge subsystem 
form the knowledge system of knowledge-based enterprise commonly. The dynamic 
mechanism of the growth or revolution of the enterprise is determined by the evolution of 
knowledge organization systems (Park 2005). The revolution force comes from the 
revolutionary knowledge subsystem and the stability force comes from the empirical 
knowledge subsystem. Moreover the revolution force and stability force are proportional to 
the revolutionary knowledge level and the empirical knowledge level respectively. The 
revolution force and the revolutionary knowledge level form the positive feedback, and the 
stability force and the empirical knowledge level form the positive feedback either. 
Meanwhile, as the increase of the empirical knowledge level and the stability force, there will 
produce inhibiting effect on the revolution force, and the growth rate of the revolutionary 
knowledge will be reduced. The reduction of the growth rate of the revolutionary knowledge 
means the decrease of external heterogeneity knowledge which will also leads the decrease 
of the growth rate of empirical knowledge. When the growth rate of empirical knowledge 
and the revolutionary knowledge both decrease to zero, the knowledge level of the 
knowledge system comes to maximum. And the tension force produced by the stability force 
and revolution force reaches maximum. 
Above mentioned knowledge dynamic characteristics corresponding to the change process of 
knowledge-based enterprise can be described as follows. 
Suppose ( )x t , denote the empirical knowledge level and the revolutionary knowledge 
level of the knowledge-based enterprise at time t  respectively, and  denotes the 
heterogeneity knowledge level at time .  
( )y t
( )z t
t
Moreover knowledge could not grow limitlessly, thus the basic dynamic model of knowledge 
evolution may be defined by the following differential equation: 
 
ABSRJ 2(1): 103 
 
Advances in Business-Related Scientific Research Journal (ABSRJ) 
Volume 2 (2011), Number 1 
 
 
1 1
max
2 2
max
( ) ( )( )(1 )(1 ( ) ( ))
( ) ( )( )(1 )(1 ( ) ( ))
x
y
dx t x ta x t b y t c z t
dt K
dy t y ta y t b x t c z t
dt K
⎧ = − − +⎪⎪
⎨
⎪ = − − +
⎪⎩
1
2
 
 
with the initial conditions 
 
0
0
(0)
(0)
x x
y y
=⎧
⎨ =⎩  
 
where max
xK , max
yK  denote the development limit of the empirical knowledge level and the 
revolutionary knowledge level of the knowledge-based enterprise respectively, and 
( ). , ,i i ia b c 0> 1, 2i =
The equilibrium conditions are 
 
1 1 1
max
2 2 2
max
( )( )(1 )(1 ( ) ( )) 0
( )( )(1 )(1 ( ) ( )) 0
x
y
x ta x t b y t c z t
K
y ta y t b x t c z t
K
⎧ − − +⎪⎪
⎨
⎪ − − +
⎪⎩
=
=
 
The singular points of the equations are , (0,0)O
2
2
1 ( )( ,0)c z tA
b
+
, , max( ,0)
xB K
1
1
1 ( )(0, )c z tC
b
+
, , max(0, )
yD K
2
max
2
1 ( )( , )yc z tE K
b
+
max max( ,
x yF K K, , )
2 1
2 1
1 ( ) 1 ( )( , )c z t c z tG
b b
+ +
 and 
1
max
1
1 ( )( ,x c z tH K
b
+ )
. 
Following we will analyze the effect of heterogeneity knowledge level on the dynamic 
evolving process of knowledge system. 
 
(1) When 
2
max
2
1 ( ) xc z t K
b
+
<
 and 
1
max
1
1 ( ) yc z t K
b
+
<
, that is 
2 max 1 max
2 1
1 1( ) min{ , }
x yb K b Kz t
c c
− −
<
. 
 
ABSRJ 2(1): 104 
 
Advances in Business-Related Scientific Research Journal (ABSRJ) 
Volume 2 (2011), Number 1 
 
 
Figure1: The dynamic evolving process of knowledge system (case (1)) 
O A B
C
D
E F
G H
x
y
 
 
From the dynamic evolving process of knowledge system (Fig.1), we can derive that the 
stable points are B  and . D
 
 (2) When 
2
max
2
1 ( ) xc z t K
b
+
>
 and 
1
max
1
1 ( ) yc z t K
b
+
>
, that is 
2 max 1 max
2 1
1 1( ) max{ , }
x yb K b Kz t
c c
− −
>
. 
 
Figure2: The dynamic evolving process of knowledge system (case (2)) 
O AB
C
D E
F
GH
x
y
 
 
From the dynamic evolving process of knowledge system (Fig.2), we can derive that the 
stable point is . F
ABSRJ 2(1): 105 
 
Advances in Business-Related Scientific Research Journal (ABSRJ) 
Volume 2 (2011), Number 1 
 
 
(3) When 
2
max
2
1 ( ) xc z t K
b
+
>
 and 
1
max
1
1 ( ) yc z t K
b
+
<
, that is 
2 max 1 max
2 1
1 1( )
x yb K b Kz t
c c
− −
< <
. 
 
Figure3: The dynamic evolving process of knowledge system (case (3)) 
O AB
C
D
EF
GH
x
y
 
 
From the dynamic evolving process of knowledge system (Fig.3), we can derive that the 
stable point is . D
 
(4) When 
2
max
2
1 ( ) xc z t K
b
+
<
 and 
1
max
1
1 ( ) yc z t K
b
+
>
, that is 
1 max 2 max
1 2
1 1( )
y xb K b Kz t
c c
− −
< <
, 
similarly to case (3), the stable point is A . 
THE CHANGE PROCESS AND NIL NETWORKS 
Although the dynamic change process of knowledge-based enterprise is always under the co-
evolution interaction of revolution force and stability force, people can not only through 
introducing new knowledge to change the enterprise’s management style or strategy 
(Grieves 2000). To realize change, enterprise’s behavior must be checked, the alternative 
plans will be verified, and the modified patters will be put into practice. To realize 
organizational revolution and evolution process, the enterprise need to conduct single loop 
learning to correct and enhance organizational capability and reconstruct double loop 
learning within the organization based on not changing the basic norms, policy and 
objectives of enterprise. And organizational learning effectiveness depends on all levels of 
staff and the interactions and mutual relations between them (Burke 1997). The main bodies 
between the organization’s internal and external, formal and informal interactions and 
mutual relations construct the perception-strain-decision neural network with the property of 
optimizing or changing internal and external relations and interactions, and form immune 
network with the property of distributed autonomy meanwhile.  
In order to support the evolution of revolutionary knowledge subsystem and form rapid and 
intuitive perception and reaction of external change, double loop learning manner is adopted 
to destruct stability in neural network which has the positive feedback process 
ABSRJ 2(1): 106 
 
Advances in Business-Related Scientific Research Journal (ABSRJ) 
Volume 2 (2011), Number 1 
 
 
characteristics. And in order to support the evolution of empirical knowledge subsystem and 
keep sustained and healthy development in stable region of evolution, single loop learning 
manner is adopted to strengthen the stability in immune network which has the negative 
feedback process characteristics. What is more, neural network and immune network 
commonly form learning network. The learning mechanism is determined by the synergy 
impact between single loop learning and double loop learning constantly to realize the 
collection, share, and integration of internal and external knowledge and generate dynamic 
knowledge system and core abilities for different stage of organization. Here we define such 
neural network, immune network and learning network formed during the process of 
organizational development as NIL networks for short. 
At the same time, during the process of knowledge exploration and exploitation in neural 
network, immune network and learning network, the introduction of external new knowledge 
and increment of empirical knowledge will produce new interactive relationships and the 
change of the original connections of the organization, i.e., give rise to the change of 
structure of neural network, immune network and learning network. The dynamic change of 
knowledge system and the structure of NIL networks are concomitant.  
THE MECHANISM OF DIFFERENT MODES OF ORGANIZATIONAL DEVELOPMENT 
Based on knowledge system, the generation of change strategy in knowledge-based 
enterprise is determined by the mechanism of foreknowledge, referred as internal model, 
which is codetermined by organization structure, benefit structure, knowledge structure, 
subject of internal and external relations and ways of their interactions (John 1998). The 
internal model is the key to our basic standard, vision and behavior manner, and it also 
decides how to transform the perceptions of changes of external environment to the 
adjustment of its own NIL network structure. And the vision is the limit of time series of 
internal model in the knowledge-based enterprise. The internal model of the knowledge-
based enterprise can be divided into explicit internal model and tacit internal model. Based 
on neural network, the explicit one is the prospective ability and mechanism organized by 
the effect of the revolution knowledge subsystem, while by assistant of the immune network, 
the tacit one is the predictive ability and mechanism organized by the effect of empirical 
knowledge subsystem. 
Evolution and revolution are two ways of things development, and the essential difference 
between them is not the magnitude of the change rate, but whether there occurs new 
properties hereabout the change point. The change of the knowledge-based enterprise can 
be classified as evolution, mutation revolution and sliding revolution. The so-called evolution 
means invariant or minimal optimized changes of the internal model in the knowledge 
system. And with the domination of the empirical knowledge and the support of the immune 
network in the organization, the course of the evolution is realized through single loop 
learning. Meanwhile, revolution is a change process, which is driven by the external and 
internal innovative knowledge and characterized by changes of internal models and it is 
realized through double loop learning with the support of the neural network in the 
organization. 
Revolution can be classified as mutation revolution and sliding revolution. Mutation 
revolution means discontinuous and saltatory changes in the internal model, while sliding 
revolution means the process of the continuous and non-saltatory changes in the internal 
model. The change process caused by evolution and mutation revolution has been defined 
as mechanical revolution mode, while the change process caused by evolution and sliding 
revolution has been defined as organic adaptive revolution mode. With the structure of the 
ABSRJ 2(1): 107 
 
Advances in Business-Related Scientific Research Journal (ABSRJ) 
Volume 2 (2011), Number 1 
 
 
sliding mode, the sliding movement should have good stability and dynamical quality. 
Different revolution modes during the change process of knowledge-based enterprise are 
shown in Fig.4.  
Figure4: Different revolution modes of knowledge-based enterprise 
 
PRACTICE IMPLICATIONS 
Through the above analysis, knowledge-based enterprise can adopt some strategies and 
make use of some opportunities during the process of organizational development. Different 
strategies of knowledge change and different strategies of network change can be combined 
which will result in mutation revolution or sliding revolution and decide that whether the 
change mode is organic adaptive mode or mechanical mode. 
Secondly, choosing suitable change opportunity is very important. Successful change should 
be happened at proper time with proper combinations. Proper knowledge change strategy 
and proper network change strategy should be organic matched. Otherwise if one hand is 
not matched, that will lead to failure of change.  
Thus our proposed theoretical model and analysis can provide some suggestions or 
verifications during the change processes of knowledge-based enterprise in reality, such as 
the mode of Chrysler, Xerox Corporation, Haier and so on. 
CONCLUSIONS 
We have modeled the process of organizational development from the aspect of 
organizational knowledge system which is comprised by empirical knowledge subsystem and 
revolution knowledge subsystem. We define the essential difference of different change 
modes, consider the decision mechanism of different change modes, analyze the occurrence 
and feedback mechanism of different change modes, give the strategies and the 
opportunities during the process of organizational development, conclude the dynamics 
theory of driving different change modes and finally point out some practice implications. In 
a word, our efforts can explain the increasingly phenomenons of shorter life cycle, guide the 
behavior of knowledge-based enterprises, enrich the theory of organizational development 
and so on.  
ABSRJ 2(1): 108 
 
Advances in Business-Related Scientific Research Journal (ABSRJ) 
Volume 2 (2011), Number 1 
 
 
In further study, we will try to confirm our conclusions in practical knowledge-based 
enterprises and analyze the problem or the model in certain less restricted situations. 
ACKNOWLEDGMENT 
The authors acknowledge support from the funds provided by the National Natural Science 
Foundation of China (Grant No. 70571013, 70973017), Humanities and Social Sciences 
Planning Project of Ministry of Education (No.09YJA630020). 
REFERENCES 
Burke W. Warner (1997). The new agenda for organization development. Organizational 
Dynamics, 26 (1), 7-18. 
Grieves J. (2000).  The origins of organizational development. Journal of Management 
Development, 19 (5), 345-447. 
Hu Xiao-han, & Wan Di-fang (2005). Empirical research on the organization change effect 
factors and the organization change mode: samples as the high-tech new ventures, 
Application of Statistics and Management, 24 (1), 15-20. 
Jeffrey Pfeffer, & Gerald R. Salancik (1978). The external control of organizations: a resource 
dependence perspective, Harper & Row, New York. 
John H. Holland (1998). Emergence: From Chaos to Order, Redwood City, California: 
Addison-Wesley. 
Karl E. Weick, & Robert E. Quinn (1999). Organizational Change and Development, Ammu. 
Review Pcychol, 50, 361-386. 
Larry E. Greiner (1998). Evolution and Revolution as Organizations Grow, Harvard Business 
Review, May-June, 55-67. 
Lewin K. (1951). Field Theory in Social Science, Harper and Row, New York. 
Liu Hong (2004). Complexity of multi-agents based organization, Ziran Zazhi, 26 (4), 227-
233. 
Liu Hong, & Zhou Lin (2003). Organization change along with complexity growth. 
Management Review, 15 (12), 52-56. 
Michael Hannan, & John Freeman (1977). The Population Ecology of Organizations, 
American Journal of Sociology, 82 (5), 929-964. 
Michael Hannan, & John Freeman (1984).  Structural Inertia and Organizational Change, 
American Sociological Review, 49, 149-164. 
Park S. H., & Zhou D. (2005). Firm heterogeneity and competitive dynamics in alliance 
formation, Academy of Management Review, 30, 531-554. 
Zhang Ding-kun (2000), Improving and revolutionary-the study for organizational change, 
China Soft Science, 10, 121-124. 
 
ABSRJ 2(1): 109