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Abstract

In the management and social sciences literature, chaos theory has been used primarily as a metaphor to understand organizational phenomena. Using metaphors to understand organizations is a novel idea that has gained much acceptance, thanks to the pioneering work of Morgan (1986). However, chaos theory's value as a metaphor has been overused and offers little that cannot already be explained using existing theories and frameworks. Because chaos theory is a mathematical theory, we believe its mathematical principles offer the greatest application to the management literature. In this paper, we offer the use of phase space, a tool of chaos theory, as a way to analyze firm performance.

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