Exploring the Boundaries of What Can Be Considered Organizational:Decentralized Autonomous Organizations (DAOs) Between Decided Order and Algorithmic Order

Abstract

Decentralized Autonomous Organizations (DAOs) represent a new and emerging form of organizing that leverages algorithmic technologies, automating many processes traditionally managed by humans. DAOs represent a radical shift as they rely on blockchain-enabled automated decision-making, diverging from the continuous human-driven decision processes that define traditional organizations. This conceptual paper examines DAOs as a critical case, questioning their place within the broader scope of organizational theory. More specifically, we discuss whether DAOs, often seen as embodiments of ‘algorithmic order,’ challenge conventional notions of organization, traditionally centered on human decision-making or ‘decided order.’ By juxtaposing gradual theories of organization, which emphasize the degree of organization through human decision-making, with theories of algorithmic organizing, we aim to uncover the unique dynamics of DAOs. This analysis underscores the need for revisiting and possibly expanding organizational theories to accommodate emerging digital phenomena like DAOs. Ultimately, DAOs serve as a pivotal case for probing the evolving boundaries of what constitutes an organization in the digital age.