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The Social Cost of Social Value Creation: An Exploratory Inquiry into the Ambivalent Nature of Complex Information Technology Intensive Firms
Abstract
Google, eBay, Amazon, Facebook, Myspace, Craig’s List and their foreign equivalents, such as the Chinese QQ and Baidu, for example, are ostensibly complex, and – more troublesome - their attitudes are becoming increasingly contradictory, controversial, and conflicted: For one, Tom Malone’s decade-old predictions of a decentralized network of a multitude of small, cooperating firms did not materialize; to the contrary and counter to the spirit of the democratic nature of information and information technology, these e-giants are defining their own industries and defying regulation, submitting the participants in their respective markets to proprietary rules via three central tenets: regulatory capture, regulatory arbitrage, and regulatory opportunism. In the present critical chapter the authors explore these traits of the Complex Information Technology-Intensive firms and formulate elements of a framework for their ambiguous nature that may lead to social cost exceeding their initially glorified social value creation.
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