The E‐economy and the Rise of Technocapitalism: Networks, Firms, and Transportation

Abstract

The e-economy is part of a larger phenomenon, technocapitalism, that is transforming business organizations and the ways in which they transact, produce, and ship their goods. Technocapitalism is an evolution of market capitalism that is rooted in technological innovation and supported by such intangibles as creativity and knowledge. This paper considers first the main characteristics of networks that support the e-economy and its source phenomenon, the emergence of technocapitalism. Networks are thought to be the main vehicle through which the e-economy spreads, and they have major effects on the organization of business firms. The culture of technocapitalism, with its emphasis on continuous innovation and rapid adjustment, is largely behind the rising importance of networks. A second section then considers the deconstruction of business firms and its relation to networks, the e-economy, and the rise of technocapitalism. A historical perspective is provided to show the contrast with previous eras. The deconstruction of business organizations involves a major transformation of the norms and ways in which firms are run and structured. Finally, the likely implications for transportation and shipping of the rise of the e-economy, its networks, and the deconstruction of firms are discussed. The logistics, pricing, and infrastructure of shipping are likely to be substantially affected by the spread of the e-economy, its networks, and the deconstruction of firms. Copyright 2003 Gatton College of Business and Economics, University of Kentucky..

High-Tech Firms’ Location Considerations within the Metropolitan Regions and the Impact of Their Development Stages

“…Even though the factors informing the local production milieu were found to be the most influential for location choice, some of them were found to be less important in the intra-metropolitan context. Among these was the presence of anchor firms and international companies, which had been reported as significant in the literature (Suarez-Villa & Walrod, 1997;Suarez-Villa, 2003). We did not find any difference in this factor among plants belonging to different phases of the life cycle.…”

“…Moreover, the advantages that encourage the agglomeration of firms remain even when geographical proximity means much more intense competition among firms. A concentration of firms at a location makes it possible for them to achieve technological advantages and a competitive ability, which combine to raise profitability and improve performance in spite of the intensive competition (Satterthwaite, 1992;Gersbach & Schmutzler, 2000;Suarez-Villa, 2003). Thus, such factors are expected to be of great importance in the process of high-tech firms choosing a preferred location.…”

Globalization, e‐economy and trade

“…First there are situations where economies of scale are obtained, i.e. where value results from scale not from scarcity; second, the dilution of hierarchies may occur as participants interact more freely; third, networks generate changes and fluidity (adaption to deregulation); and fourth, networks support decentralization and devolution (which is conspicuous in e-commerce networks) (Suarez-Villa, 2003).…”

Global Production Networks

“…In order to describe the transformation (or deconstruction) of the firm and the modularization of manufacturing, Suarez-Villa (2003) emphasize the emerging network logic of the modern economy and coined the term "techno-capitalism". It is also being used as an interpretative scheme, a paradigm for analyzing structural changes that are primarily driven by information technologies and globalization.…”