An analysis of algorithmic capability and organizational impact

Organizations face ever more complex environments and the need to adapt and increase their performance. A well-known trade-off lies between the convergence of performance-related factors to an organization’s strategic orientation that produces inertia versus the need to sense opportunity and change in the environment and make the necessary internal changes. The advent of the algorithms has given rise to algorithmic governance and the notion that this trade-off can be addressed through the large-scale implementation of algorithms for data mining of Big Data. This chapter addresses the implementation aspects of data governance programs in terms of the two sides of this trade-off. It may enable improvements in organizational performance but at the same time it is necessary to managing unwanted effects inside and beyond the organization.