This research addresses a structural cybernetic anomaly within strategic management precipitated by the integration of artificial intelligence into the organizational core. Traditional paradigms, specifically the resource-based view and the dynamic capabilities framework, operate under closed-system, first-order cybernetic assumptions that fail to capture the dissipative nature of algorithmic agents. By conceptualizing the enterprise as a complex adaptive system operating far from thermodynamic equilibrium, this study introduces the theory of dynamic cognitive advantage. Grounded in second-order cybernetics, the framework posits that competitive differentiation emerges from the historical, recursive, structural coupling of human semantic intent and machine syntactic processing. This research formalizes this co-evolutionary dynamic utilizing coupled non-linear differential equations and time decay integrals. Furthermore, it operationalizes the central mechanism of this capability—the cognitive flywheel—and proposes a fractal governance architecture to mitigate systemic vulnerabilities such as automation bias. To transition these propositions into management science, a proposed mixed-methods empirical research agenda is presented. It outlines a future partial least squares–structural equation modeling (PLS-SEM) approach to test the mediating role of the cognitive flywheel and the moderating effect of fractal governance on organizational resilience. This research provides a mathematically formalized, empirically testable architecture for navigating the artificial intelligence economy.
Tianchi Lu (Sun,) studied this question.