Co-evolution
For organizations, co-evolution manifests as competitive dynamics where companies don't adapt to fixed market conditions but to each other's strategies.
The environment doesn't remain static - competitors evolve, creating dynamic fitness landscapes where running hard is required just to stay in place.
Co-evolution is reciprocal evolutionary change between interacting species, where each species is a selective pressure on the other. The environment isn't static (as in conventional natural selection); it's dynamic, changing because the other species is also evolving. Ehrlich and Raven (1964) studied butterflies and plants, observing how plants in the family Apiaceae produce toxic furanocoumarins, while Papilionidae butterflies evolved detoxification mechanisms. In turn, some plants evolved higher toxin concentrations, and butterflies evolved more efficient detoxification.
Business Application of Co-evolution
For organizations, co-evolution manifests as competitive dynamics where companies don't adapt to fixed market conditions but to each other's strategies. Understanding co-evolution reveals why competitive advantages are often temporary, why some competitions escalate destructively, when cooperation can evolve among competitors, and how to recognize whether you're in a sustainable competitive position or a costly arms race.