The role of technology in the one-contracting party exchange

Indice

The impact of the distortive effect of the one-contracting party exchange on wealth redistribution is all the stronger the greater the corporate group’s ability to skilfully combine both the legal and the technical and organisational leverage.

In this respect, technology plays a major role in the expansion of the one-contracting party economy. The integration and control of the production process is essential for the group to effectively act as a single firm, while still operating and being perceived on the market as a plurality of companies.

Legal control must in fact be matched by the power to control and direct the organisation of means and the workers. Otherwise, the legal transfer of individual elements of the production chain would create inefficiencies that would make it economically unviable, especially in the case of relocation abroad.

In particular, for this to be possible, it is necessary that administrative and accounting functions, functions related to sales and distribution of end goods, as well as those related to customer relations, are computerised.

The standardisation of data and activities becomes an indispensable success factor for the corporate group, otherwise the control and management of processes would be unattainable. For instance, employees that are assigned with a certain task, despite being located in different territories and employed by different companies, are put in a position to work in exactly the same way and using the same IT tools. Corporate control thus takes the form of employer power, which in turn is an expression of entrepreneurial power. This explains why the phenomenon is so widespread.


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