Social Systems: Resources and Strategies

Abstract

This theoretical article reviews the model describing processes in social systems based on the analysis of their resource base. Application of the system theory can help to explain why some systems are aimed at prevention of type I errors, while others seek to decrease the quantity of type II errors. Such differences are manifested in investment of resources either into deep interaction or into wide coverage. Some examples of such strategies in economic, market and production systems are provided in the article. The article introduces some provisions of the system theory in the context of the resource flows. The main indicators that are considered in this article are the characteristics of the sources of the exchanging flows of resources. Their relative frequency and quality are investigated; on the basis of which the most effective strategy of the system is derived; as a mechanism for redistribution of resources. The rigor of the system’s strategy depends on the magnitude of the difference in characteristics. It is explained how exactly it influences the exchange processes, that in reality systems do not interact simultaneously and one of the opposite resource flows is always delayed. It is shown how the system strategy depends on the risks linked with interactions. Also, there are grounds for the need to accumulate resources, including in the situation of their surplus. The model helps also explain shift of economic centers throughout history. Additionally, there is an analogy between systems strategies and the competitive strategies described by M. Porter and outsourcing versus integration.

Keywords

• systems theory
• economic systems
• social structure
• competition
• strategy
• culture