From Imbalanced Wealth Distribution to Predictable Asymmetry in Various Fields: A Multi-Imprinting Perspective of Pareto Principle

Abstract

The early experiences by the scientific community of the pareto principle during its infancy “stamp” distinct imprints across multiple fields. Examining the pareto principle in various disciplines, we argue and find that such multi-imprinting simultaneously creates an internal capability imprint, as a tool in both analytical and strategic decision-making, and an external identity imprint, as a universal phenomenon of predictable imbalance. In view of operations strategy future challenges, and high performer and high potential being associated with a small percentage of employees that consistently delivers the vast majority of results in many organisations; the mathematical equations reveal that the generalised pareto principle equation splits the “vital few” area in two subsets areas. Therefore, it is suggested that the pareto principle includes any proportion from subsets areas in which the sum of the numerator and denominator is greater or smaller than 100%, over and above the belief that the generalised pareto principle is only restricted to any proportion in which the sum of the numerator and denominator is equal to 100%. These findings advance a multi-imprinting perspective and contribute to strategy research by explaining persistent universality phenomenon through internal and external capabilities imprints.