In marketing theory, the shift from the paradigm of value creation to value ‘cocreation’ calls for a deeper grasp of the interactions between producers and customers. Marketing studies have widely focused on the value cocreation concept, but so far, the mechanism through which consumers can be involved in the process of value cocreation through product development had found little space in marketing studies. In this theoretical paper, we aim to fill this gap and pave the way towards a better understanding of the mechanisms of value cocreation for product development through second-order cybernetics. We conceive the market arena as a physical or virtual place where communications of value propositions produce eigenforms driving the eigenbehaviours of producers and customers towards shared meaningful objects. Based on these assumptions, we offer a framework based on the viable systems model and the law of requisite variety to shed light on processes of interaction between producers and consumers in the market arena. The proposed framework can be an effective tool for the managers involved in product design and marketing to contribute to a firm’s policies by supplying a clearer picture of the systemic relations involved in the value cocreation for product innovation and product development.
Open peer commentary on the target article “From Objects to Processes: A Proposal to Rewrite Radical Constructivism” by Siegfried J. Schmidt. Upshot: Interested in the practical side of philosophy, I tell a story as an example of the never-ending process of life and add some questions: which stories can we tell that undermine and complement our traditions, emotions, abstract rationality, and mainstream ideologies?
Jede Gesellschaft hat wirtschaftliche Probleme zu lösen. In der modernen Gesellschaft geschieht dies mit Hilfe eines ausdifferenzierten Wirtschaftssystems. Trotz aller Interdependenzen und kausalen Verknüpfungen, die bei funktionaler Differenzierung der Gesellschaft noch zunehmen, operiert dies Wirtschaftssystem als ein “autopoietisches” Subsystem unter funktionaler Autonomie. Es ist geschlossen durch rekursive Zirkularität. Es besteht aus Zahlungen, die auf Grund von Zahlungen möglich sind und weitere Zahlungen ermöglichen. In diesem Sinne werden die Elemente des Systems durch die Elemente des Systems produziert, und die Umwelt des Systems enthält keinerlei Elemente dieser Art. Zugleich ist das Wirtschaftssystem aber auch ein offenes System, da seine Operationen auf Bedürfnisse seiner gesellschaftlichen und seiner menschlichen Umwelt abgestimmt sind und da seine Funktion in der Sicherstellung der Aussicht auf Bedarfsdeckung in der näheren Zukunft besteht. In diesem Sinne ist Geschlossenheit des Systems Bedingung seiner Offenheit und umgekehrt. Der Aufsatz verfolgt einige Konsequenzen dieses theoretischen Ansatzes.
Purpose: This paper aims to introduce the reader to investigation of some aspects of investment decision making from a constructivist perspective. Approach: The constructivist perspective is introduced in its dual nature of epistemology and of modelization. From constructivist epistemology, the paper mentions the corollaries of theoretical pluralism and cognitive pragmatism. From Kruglanski and Ajzen’s lay epistemology theory, the paper presents in more detail a constructivist modelization for the study and improvement of formal processes of investment decision making. Findings: Beginning from the proposed framework, the paper indicates the lines for the development of a critical (or reflective) investment decision-making attitude. This is an investment decision making which is able to reflect on its own constructs and cognitive processes in order to develop investment processes with a higher “constructivist awareness” and efficacy. Value: The proposed modelization can contribute to the work of those dedicated to the development of better formal processes of investment. The paper presents three examples of possible applications potentially useful for the improvement of the processes of asset valuation of value investors. Relevance: This paper aims to introduce the reader to investigation of some aspects of investment decision making from a constructivist perspective.
In this article, an exploration of a “second order variety” is undertaken which concludes with some new insights into the long-running debate on the reversibility or irreversibility of historical processes. The investigation begins with a detailed methodological discussion of the legitimate and irreducible multiplicity of potentially complex historical models which refer to virtually identical processes of socio-economic transformation. In view of the surprising diversity of the potential models analysed, a new type of investigation is proposed, namely a series of “second order analyses” which are designed to identify the self-referential second order features inherent in complex model building such as the attributes of attributes, the dynamics of dynamics, the models of models and, lastly, the evolution of evolution.
Research background: Since the introduction of the concept in 1972 Autopoiesis has enjoyed great popularity among academicians representing various fields of science. However, the number of studies devoted to the investigation of factors that have an impact on the formation of autopoietic economic structures is quite limited. This paper addresses the gap in scientific research on autopoiesis of economic structures in small open markets, specifically in the Baltic States. Purpose of the article: The paper aims to identify and evaluate factors that turn on selforganization mechanisms of autopoietic economic structures in the Baltic States, in particular in Latvia. Methods: Expert survey was used to identify the most important factors affecting the formation of meso-economic entities in the Baltic States. The factors’ assessments provided by seven experts were analyzed. Analytic Hierarchy Process (AHP) with fuzzy numbers was employed to process the data. Two different scales of evaluation (inverse linear and balanced) were used. Findings & Value added: The factors influencing the process of formation of business groups were evaluated by experts. Research results allow for making conclusions regarding the causes of the business integration, and impact of diversified integrated business structures on the country’s business system in Central Europe.
Upshot: Massumi innovatively interlinks poststructuralist theory with ideas from cognitive psychology and Luhmann’s systems theory to deconstruct rational choice as the founding myth of the liberal economy. His politically charged constructivism explores socio-economic reproduction as a process of constant re-stabilization between the openness of affective response and the closure of rationality. Defying social determination, Massumi shows how affect can constitute a source of potential change when modulated trans-individually in response to political events.
Using the updated Google Book corpus dataset generated in July 2012, we analyze the largest available corpus of digitalized books to review social macro trends such as the secularization, politicization, economization, and mediatization of society. These familiar trend statements are tested through a comparative analysis of word frequency time-series plots for the English, French, and German language area produced by means of the enhanced Google Ngram Viewer, the online graphing tool that charts annual word counts as found in the Google Book corpus. The results: a) confirm that the importance of the political system, religion, economy, and mass media features significant change in time and considerable regional differences and b) suggest that visions of economized or capitalist societies are intellectual artifacts rather than appropriate descriptions of society. Relevance: Social systems, functional differentiation, Niklas Luhmann, Google Ngram Viewer Using the updated Google Book corpus dataset generated in July 2012, we analyze the largest available corpus of digitalized books to review social macro trends such as the secularization, politicization, economization, and mediatization of society. These familiar trend statements are tested through a comparative analysis of word frequency time-series plots for the English, French, and German language area produced by means of the enhanced Google Ngram Viewer, the online graphing tool that charts annual word counts as found in the Google Book corpus. The results: a) confirm that the importance of the political system, religion, economy, and mass media features significant change in time and considerable regional differences and b) suggest that visions of economized or capitalist societies are intellectual artifacts rather than appropriate descriptions of society.
George Soros’s reflexivity theory is quite compatible with second order cybernetics. Indeed his work shows how to apply ideas in second order cybernetics to economics, finance, and political science. This paper briefly reviews three theories of reflexivity in cybernetics. It provides an introduction to Soros’s version of reflexivity theory and reviews applications in economics and finance. Soros’s approach to economics is based on different assumptions about information and about human behavior. His approach to finance is more holistic than most current work in finance. He does not emphasize mathematical models but rather sees finance as a human player game with himself as a participant. The paper concludes that Soros’s work is a very important contribution to and expansion of contemporary social science.
Heinz von Foerster proposed that the observer should be included in the domain of observation. He suggested that this approach to cybernetics be called second-order cybernetics. Heinz was primarily interested in understanding cognition, based on neurophysiology and mathematics. But there has also been strong interest in cybernetics as a theory of social systems. Using the “second order” idea for existing social science fields would focus attention on the role of the observer and on reflexive phenomena such as the effect of theories on what is being studied. This article considers how the field of economics might adopt the second order idea. Relevance: Second-order cybernetics, by interpreting self-reference as occurring in time, can serve as a guide to the social sciences for how to include reflexive phenomena in their theories.