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I believe that, in terms of firm theory and how technology plays into organization side, we're reaching the limits of current paradigms. Over the last three to
by namaria 3y ago
I believe that, in terms of firm theory and how technology plays into organization side, we're reaching the limits of current paradigms. Over the last three to four decades, transactions costs grew (more regulations on personal data, more complicated cross-borders contracts as services became dominant in most economies - free trade agreements typically cover goods but not services) while coordination costs fell (most business facing software can now be used as a metered service in the browser). This favored growing corporations.
I've seen in my lifetime conglomerates fall out of favor ('synergies' failed to materialize) and then rise up again but this time in the computer technology sector - are you in the Apple, Microsoft or Google corporate tech garden?
But now interest rates are back and investors can't just park wealth in businesses that just grow revenue but not profit. So ballooning complexity can't just be dealt with by throwing bodies (and pay raises) at the problem anymore.
I hope this leads to more niche player offerings and less saas where small local outfits are just independent sales outfits for cloud borgs.