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Summary Organization Theories additional readings

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This is a summary about the additional readings Wright and Nyberg (2017), Porter (2008), Kenney and Zysman (2016) and Davis (2016) about change in organizations and platformization.

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  • 4 november 2020
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Wright & Nyberg 2017
Industrialization​ → exploitation of fossil fuels and destruction of forests and oceans →
radical changes in the functioning of society and economy to face such a crisis.
Major reason for lack of progress:​ the way in which climate change is translated within major
corporations.
→ even among strong proponents of the need to respond to the climate crisis, those concerns
converted into less treathening discourses of ​profit maximization​ and ​shareholder value​.
→ c​ onclusion:​ business leadership on climate change alone is i​ nsufficient​ to provide the
dramatic decarbonization needed to avoid dangerous climate change.
Business and t​ echnological innovation​ is an essential part of the climate response.
→ i​ ssue:​ climate change also needs ​regulatory guidance​ to ensure significant and permanent
reductions in g ​ reenhouse gas​ emissions.
Organizations and economies must be managed within the limits of​ planetary boundaries
requiring societal governance for the collective good.
→ climate change is an unparalleled threat to the future of our society → a future that goes
beyond the comfortable assumptions of business as usual.

Porter 2008
Porter's model includes five interrelated forces that influence industry competition.
→ 5​ forces​: ​(1) threat of new entrants, (2) power of buyers, (3) power of suppliers, (4) threat
of substitute products, and (5) rivalry among existing competitors.
Why:​ identifies and analyses 5 competitive forces that shape an industry and determine
weaknesses and strengths → to identify industry’s structure and corporate strategy.
→ framework for analysing company’s competitive environment → influence on profitability
→ used to guide business strategy to increase competitive advantage.
1. The less time and money it costs to enter a market and be an ​effective competitor​, the
more an established company’s position could be weakened → strong entry barriers
ideal for existing company’s to charge higher prices.
2. How many buyers a company has, how significant each one is and how much it
would cost a company to find new customers of markets for its output → s​ maller and
powerful client base​ means more power to customers to negotiate for lower prices.
3. How easily suppliers can drive up the cost of inputs → affected by number of
suppliers, how unique the inputs are and how much it would cost a company to
switch → the fewer suppliers in an industry, the more dependence → the more power
→ many suppliers and low ​switching costs​, company can keep input costs lower.
4. No close substitutes means more power to increase prices → available close
substitutes means customers have the option to buy others, power is weakened.
5. The larger the number of competitors, the lesser the power of a company → when
competitive rivalry is low, a company has greater power to charge higher prices.

Kenney & Zysman 2016
Digital platform economy​ enables radical changes → shape interactions → IT.
→a
​ ll platforms​ are based on mobilizing human beings to contribute.
→p​ latforms and the cloud​: essential part of ​third globalization​ → s​ hared economy​.
→p ​ latform owners​ develop power that may be more formidable than that of the factory
owners in the early industrial revolution → can result in ​utopia​ or ​dystopia​.

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