The Paradox of Postindustrialization

Abstract

An important segment of writings on postindustrialization is distinctly utopian in stressing the greater mastery and control made possible by recent innovations in information technology. The utopian theme underscores the technical outcomes of innovations and highlights their benefits for ameliorating social problems. By contrast, our work suggests that many of the social problems in contemporary society are a consequence of recent innovations in information technology. We argue that postindustrial theorists are correct in stressing mastery over certain technical problems but incorrect in slighting the destabilizing effect innovations have on organizations and the markets in which these organizations participate. These destabilizing effects complicate organizational strategies by increasing market risk and uncertainty. Since most organizations are risk aversive, social problems are created as organizations externalize their costs and pass along risk to other, more dependent actors. Illustrations from two institutions, politics and the economy, indicate that many postindustrial innovations are associated with heightened competition as well as greater risk and uncertainty across the institutional order. We conclude that postindustrial technology introduces no net gain in managing the complexities of the social world. Risk and control are both integral to

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