Just as technological and economic innovations in an earlier period underpinned the evolution of the centralized nation state, current innovations are undermining those same states. The great nation states, despite their military prowess, are doomed like the dinosaurs of old, unable, unwilling or insufficiently nimble to meet the threat to their dominance posed by agile virtual organizations that have no sense of national identity.
Translator: Akira Kawaguchi Download the entire translation as a single ZIP file or individual chapter PDFs below. Complete Japanese Translation (ZIP file containing all chapters) Individual chapter PDF files - Forward by Translator - Profile of Translator - Preface to Japanese Translation (by Author) - Foreword (by Murray Turoff) - Preface - Chapter 1: Intimations of a New Order -…
November 1, 2005 (Original article date)
Virtual organization presents two different faces to the world. One face reveals an ability to enhance the efficiency and effectiveness of management, and to achieve greater flexibility of action. The other shows the dissolution of traditional relationships in the course of realizing these desirable ends. In a word, virtual organization is a disturbing agent of social change and thus provokes ambivalent responses. It is most clearly evident as an innovation in business management, especially within multinational firms and in e-commerce. But virtual organization has implications for society as a whole and is thus treated in this book in its broad social context.
These reflections on virtual organization are about the meaning and social significance of computers as mediators and brokers. Computers mediate between individuals by providing channels of communication in the form of messaging systems; they act as brokers in matching buyers and sellers, employees and employers, resources and work processes, etc. The explosive growth of electronic commerce on the Internet has made such functions commonplace. Computer-based mediation and brokerage lie at the heart of virtual organization, a powerful and flexible mode of organization founded on a separation of requirements from the ways in which requirements are met. Separating these elements allows managers to switch easily from one way of meeting a requirement (e.g., for an employee, a supplier, partner, etc.) to another. Used systematically, switching brings huge increases in productivity provided transaction costs are held in check. The price of this increased efficiency is that, practiced regularly, switching weakens personal and political loyalties. Absent a sense of loyalty to persons or places, virtual organizations distance themselves from the regions and countries in which they operate. Virtual organization is undermining the nation state. Government as we know it today cannot control virtual organizations and will have to cede its responsibilities and powers to them. A new feudal system is in the making.