A new study from the Complexity Science Hub (CSH) reveals that companies’ information consumption grows with size, showing surprising parallels to biological processes. Just as organisms take in and process nutrients, firms “consume, transmit, and transform information” to make strategic decisions. But as companies grow, they don’t just read more—they read differently, facing unique challenges in managing that knowledge flow efficiently.
The research team analyzed employees’ online reading patterns across millions of companies worldwide, using data from major publications like The Wall Street Journal and Bloomberg as well as specialized outlets like ITCentral Station and Questex. “This dataset has never been examined at such a detailed scale,” the authors note. Their findings illuminate previously unseen patterns in the knowledge economy.
Reading the way to success
The study shows that as firms grow, their information consumption scales up disproportionately—suggesting an “economy of scale” in reading, where larger firms make substantial decisions with relatively fewer resources per unit of information consumed. This scaling, however, brings challenges: large firms’ reading habits are often more redundant and less specialized, which may lead to coordination issues as teams overlap in the information they digest.
The study also found that larger companies don’t necessarily narrow their focus, contradicting classic ideas about labor specialization. Instead, they tend to expand their reading to cover a broader range of topics. Interestingly, companies that deviate from typical reading patterns—consuming more information than expected—often achieve higher financial returns and foster greater innovation.
“These findings reveal a fascinating link between information consumption and firm performance. Companies with more active, diverse reading habits tend to be financially healthier and more innovative,” the authors conclude. Understanding how firms manage information could thus provide valuable insights into their dynamics and financial resilience.
