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Deferment and Normative Coordination (5)Filed Under: General

Epochal increase in the average delay reflects the general rise in capital and in divisions of labor. Systemic increase in delay reflects an increase in divisions of labor. The velocity with which an intermediate product might move through Ecom intermediaries reflects technological pace and the productivity but that hastened velocity cannot compensate for the lengthened divisions of labor. Prior to its appearance, technology is uncertain. However, following its appearance, it determines the circuit of production and hence the plans for production. Human ingenuity reflected in the strategic moves, however, bypasses such determinations by inventing and innovating further on economic organization of production. This is a step that a firm takes with the hope of reaping a profit, which is beyond technological rent (the Schumpeterian profit) and which belongs to the Cantillon profit. The firm resorts to strategic surprise and evocation of expectation. Modes through which expectations can be raised include of course lengthening of the production net, bringing about novelties and surprises in combining resources or in design of contracts and finally in innovating upon new technologies and in engendering divisions of labor. To underscore, Ecom affords best such requirements of mediation.

Coordination under such circumstances must look forward to the future. The coordination discussed above referred to the plans made previously. Concurrent coordination refers to the adjustment process. However, plans for deferment of consumption and on surprisingly new forms of intermediate products and combinations thereof are unique to a firm. This plan refers to the present and the future. Incumbent firms expect that novel routes of production net will emerge from its strategic choices. Firms belonging to the strategic milieu expect that expectations of the incumbent follow a path that is advantageous to them. Coordination of expectations can be achieved through intermediations, acting as a surrogate for dialogues amongst the parties. A dialogue often continues for rather long, however, often taking off to a rounding up through the evolution of norms. A norm is not a rule. It is not a routine either. A norm is always robust when it speaks only of what parties are not expected to do and when it allows freedom to parties to write
whatever their expectation guides them to. A norm sets down injunctions then. Injunctions allow a very large space to the parties in a dialogue to expect the expectations of others.

Taken From : Digital Economy – Impacts, Influences and Challenges