Int. J. Technology Management, Vol. 25, No. 8, 2003 728 Copyright © 2003 Inderscience Enterprises Ltd. Technology management – a complex adaptive systems approach Ian P. McCarthy University of Warwick, Organisational Systems and Strategy Unit, Warwick Manufacturing Group, Coventry, CV4 7AL, UK Fax: +44 (0) 247 652 4307 E-mail: i.p.mccarthy@warwick.ac.uk Abstract: There are systems methods and evolutionary processes that can help organisations understand the innovative patterns and competitive mechanisms that influence the creation, management and exploitation of technology. This paper presents a specific model based on the evolutionary processes of variation, selection, retention and struggle, coupled with fitness landscape theory. This latter concept is a complex adaptive systems theory that has attained recognition as an approach for visually mapping the strategic options an evolving system could pursue. The relevance and utility of fitness landscape theory to the strategic management of technology is explored, and a definition and model of technological fitness provided. The complex adaptive systems perspective adopted by this paper, views organisations as evolving systems that formulate strategies by classifying, selecting, adopting and exploiting various combinations of technological capabilities. A model called the strategy configuration chain is presented to illustrate this strategic process. Keywords: Technology strategy; evolution; complex adaptive systems; fitness landscapes. Reference to this paper should be made as follows: McCarthy, I.P. (2003) ‘Technology management – a complex adaptive systems approach’, Int. J. Technology Management, Vol. 25, No. 8, pp.728-745. Biographical notes: Dr. Ian McCarthy is head of the Organisational Systems and Strategy Unit at the University of Warwick. This unit focuses on understanding industrial organisations and their processes using systems methods that include evolutionary and population ecology concepts. This basic research underpins an applied research agenda that includes studies on operations and technology strategy, new product development and industrial networks. 1 Introduction Technology-based organisations contribute to dynamic competition, ensure product variety, close market gaps and create jobs. They are considered ‘high technology’ in terms of products and processes, and are key agents in the generation of regional and national economic wealth [1]. Yet, this wealth creation does not just depend on the discovery of new technology; it also requires the ability to successfully exploit discoveries and inventions. This is the theme in March’s seminal paper that considers the relation between exploration of new possibilities (innovation) and the exploitation of old