Networks and the Nature of the Firm

networks trump traditional forms of corporate organization, and ... changing traditional ways of managing that organization... If the (transaction) costs of exchanging value in the society at large go down drastically ... The core firm should now be small and agile, with a large network. The mainstream firm... becomes the more expensive alternative... Uber, Lyft, and Airbnb ... are networked platforms for physical world services... bringing fragmented industries into the 21st century in the same way that ecommerce has transformed retail.... eliminates the jobs of ... managers... replacing them with a relatively flat network managed by algorithms... Here are some key lessons for companies wanting to emulate the success of Internet marketplaces like Amazon, Google, Uber, and Airbnb: - Networks and the Nature of the Firm — The WTF Economy — Medium