Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • 2010
  • Working Paper
  • HBS Working Paper Series

The Architecture of Complex Systems: Do Core-periphery Structures Dominate?

By: Alan MacCormack, Carliss Y. Baldwin and John Rusnak
  • Format:Print
  • | Language:English
  • | Pages:37
ShareBar

Abstract

Any complex technological system can be decomposed into a number of subsystems and associated components, some of which are core to system function while others are only peripheral. The dynamics of how such "core-periphery" structures evolve and become embedded in a firm's innovation routines has been shown to be a major factor in predicting survival, especially in turbulent technology-based industries. To date however, there has been little empirical evidence on the propensity with which core-periphery structures are observed in practice, the factors that explain differences in the design of such structures, or the manner in which these structures evolve over time.

We address this gap by analyzing a large number of systems in the software industry. Our sample includes 1,286 software releases taken from 19 distinct applications. We find that 75-80% of systems possess a core-periphery structure. However, the number of components in the core varies widely, even for systems that perform the same function. These differences appear to be associated with different models of development—open, distributed organizations developing systems with smaller cores. We find that core components are often dispersed throughout a system, making their detection and management difficult for a system architect. And we show that systems evolve in different ways—in some, the core is stable, whereas in others, it grows in proportion to the system, challenging the ability of an architect to understand all possible component interactions. Our findings represent a first step in establishing some stylized facts about the structure of real world systems.

Keywords

Innovation and Management; Product Design; Practice; Core Relationships; Software; Information Technology Industry

Citation

MacCormack, Alan, Carliss Y. Baldwin, and John Rusnak. "The Architecture of Complex Systems: Do Core-periphery Structures Dominate?" Harvard Business School Working Paper, No. 10-059, January 2010.
  • Read Now

About The Authors

Alan D. MacCormack

Technology and Operations Management
→More Publications

Carliss Y. Baldwin

→More Publications

More from the Authors

    • February 2023 (Revised May 2023)
    • Faculty Research

    Doing Business in Athens, Greece

    By: Alan D. MacCormack, Carlota Moniz and Emilie Billaud
    • Industrial and Corporate Change

    Introduction

    By: Stefano Brusoni, Joachim Henkel, Michael G Jacobides, Samina Karim, Alan MacCormack, Phanish Puranam and Melissa Schilling
    • November–December 2022
    • Harvard Business Review

    Your Company Needs a Space Strategy. Now.

    By: Matthew Weinzierl, Prithwiraj (Raj) Choudhury, Tarun Khanna, Alan MacCormack and Brendan Rosseau
More from the Authors
  • Doing Business in Athens, Greece By: Alan D. MacCormack, Carlota Moniz and Emilie Billaud
  • Introduction By: Stefano Brusoni, Joachim Henkel, Michael G Jacobides, Samina Karim, Alan MacCormack, Phanish Puranam and Melissa Schilling
  • Your Company Needs a Space Strategy. Now. By: Matthew Weinzierl, Prithwiraj (Raj) Choudhury, Tarun Khanna, Alan MacCormack and Brendan Rosseau
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College