Corporate Communication in the Network Economy (original) (raw)
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Corporate communication in the emerging network economy
Corporate Communications: An International Journal, 2004
This paper draws on ideas in economics and game theory to develop a new theory of marketing in the emerging network economy. The paper argues that in a network economy, firms and consumers will confront "coordination problems". With the emerging network economy all this becomes urgent because the availability and cost of information decreases. Also, timing issues become urgent as millions of people get access to the same information simultaneously. That explains why events where masses of viewers simultaneously participate in the same events become so important. The paper introduces a simple game theoretic model and discusses marketing applications and possible strategies. These strategies imply considerable use of communication resources in order to fulfil the common knowledge requirements.
THEORY ON CORPORATE COMMUNICATION
The Coordinated Management of Meaning (CMM) theory, pioneered by W. Barnett Pearce and Vernon E. Cronen in 1980, has significantly shaped the landscape of communication studies. Originating in the communication discipline, this theory has transcended disciplinary boundaries, finding applications in psychology, sociology, and corporate communication. According to Pearce and Cronen (1980), the essence of communication lies in the intricate process of coordinating meaning between individuals. They assert that communication serves as the medium through which people co-generate and nurture their social realities, negotiating and coordinating meaning through interaction. In the context of the CMM theory, communication is not a passive transmission of messages; rather, it is an active, ongoing process where individuals collaboratively shape their understanding of the world. The theory highlights the transformative power of communication in constructing and sustaining social reality. It emphasizes that the meanings individuals ascribe to their experiences are not isolated but are socially constructed through communication. Furthermore, the CMM theory underscores the pivotal role of communication in influencing how individuals make sense of their encounters within diverse cultural and social contexts. It recognizes that the interpretation of events and experiences is not solely an individual endeavor but is profoundly influenced by the shared meanings co-created through communication. Understanding these processes becomes crucial in navigating the complexities of cultural and social interactions. 2 Grounded in the social constructionist perspective, the Coordinated Management of Meaning (CMM) theory posits that reality is not an objective entity but is, in fact, a product of social interactions (Pearce & Cronen, 1980). This perspective challenges traditional notions that posit an independent and fixed reality, contending instead that our understanding of the world is continually negotiated and coconstructed within social contexts. The social constructionist lens upon which the CMM theory is built asserts that individuals collectively shape and define their reality through ongoing interactions and communicative exchanges (Pearce & Cronen, 1980). This view rejects the notion of a predetermined or fixed reality, highlighting the dynamic and context-dependent nature of meaning-making processes within the social sphere. Central to the CMM theory is the recognition of the transformative power of language and communication in shaping our collective understanding of the world (Pearce & Cronen, 1980). Language is not seen merely as a tool for expressing pre-existing thoughts; rather, it is viewed as a dynamic force actively involved in shaping and reshaping our shared interpretations of reality. Communication, within this framework, emerges as the primary medium through which individuals collaboratively construct the meanings attributed to their experiences. Embracing the social constructionist perspective, the CMM theory underscores the role of language in influencing how individuals perceive, interpret, and respond to the world around them. The meanings ascribed to events, situations, and relationships are contingent upon the shared frameworks established through communicative processes, emphasizing the co-constructed nature of reality within a social context. The core abstractions of the CMM theory encompass three crucial elements: stories, hierarchy of meaning, and coordination. "Stories" represent the narratives individuals construct to make sense of their experiences and collectively create shared meanings. The "hierarchy of meaning" concept proposes that individuals organize their experiences into a hierarchy, where the most abstract notions precede the more concrete. "Coordination" is the process by which individuals synchronize their actions
Communications Strategies in the New Economy : The Case Studies
2019
Communication strategies, especially in the new economy, evolve in an increasingly accelerated way, to adapt to the complex and changing scenario of the interconnected network society. Based on the hypothesis of the existence of an approach to communication strategy 360o, heir to the integrated marketing communication approach, the article describes the communication strategies of three digital brands in Barcelona. The city is headquarters of the Mobile World Congress, with an interconnected ecosistem of startups and digital native brands. The results of this research come from three case studies (Wallapop, Westwing and Fotocasa), which show that its strategic planning consists of four phases (research, planning, execution and evaluation), coinciding with the Marston RACE model. The communicative strategy observed in these case studies focuses on the short term, with a growth hacker perspective, characteristic of the startup ecosystem, which takes advantage of the synergies between ...
A primer on Network Sciences. In the new economy as more people are connected to a network, greater is the value of the network. They now connect primarily through social media networks where the vast majority of connections happen between consumers and, with increasingly frequency, organizations. These online social networks have changed forever human relations to the world and with brands.
Coordination and Critical Mass in a Network Market - An Experimental Evaluation
2002
In this paper we present the results of an experiment aimed at testing the ability of consumers to coordinate actions in a market in which network externalities are present. Such markets are characterized by the necessity for consumers to believe that a certain minimum number of people will buy the good (the critical mass) in order to make purchase worthwhile. In our experiment, consumers were offered the option of buying a good at a certain price. Consumers were told the value of the product, but this value depended on how many other consumers bought. The experiment was run using a full 2x2 design with treatment variables for consumers' values (homogeneous or heterogeneous) and the price of the network good (high or low). Interestingly, consumers found it easier to purchase when they were heterogeneous than when they were homogeneous. In particular, the only setting in which cooperation was not usually attained was in the homogeneous setting when the price was high. We attribute this to critical mass. In the high priced homogeneous setting the critical mass for all players was high, thus leading to great risk in purchase. In the heterogeneous game the critical mass for the marginal player was also high, but the consumer knew that the critical mass for higher value consumers was much lower and that those consumers would therefore be likely to buy. This made purchase less risky, allowing equilibrium to be reached. One implication is that a firm facing a critical mass problem can efficiently help convince consumers that critical mass will be obtained by subsidizing low value consumers, since potential consumers will be likely to already be convinced about the purchase of high value consumers.
How Technology Enhances Communication. A Perspective about Network Enterprises
The network enterprises have appeared after the industrial revolution, and they have been studied indeed as a revolution in doing business. With the rise of the new informational platforms, a new type of network enterprise has appeared: a more collaborative, efficient and fast moving one; and thus, network society was born. Since then, there have been recorded changes in the human society, from the human behaviour with regards to technology, to the business models, with regards to efficiency. This paper aims to reflect a model of the new network society, from a collaboration and communication point of view, as well as to emphasise the importance of adapting to the new network society requirements. After an overview of the conceptual terminology and the theoretical approach of both the network society and the network enterprise, the paper identifies five dimensions of the network enterprise that will be used to describe the enterprise of the present as it is now, as well as to suggesting improvements for the one of the future.