Institutions on the Move and Revolutionary Shifts

After the analysis of evolutionary institutional changes, the fourth chapter will define revolutionary transformations. Revolutions, conceptualized as abrupt processes of social transformation, follow specific life-cycle and result from two main reasons: lack of efficiency and social justice. The chapter is structured as follows. In the first part, the author will provide a general overview of revolutions and revolutionary processes, discussing in detail its main classifications, characteristics and causes, leading actors, overall phases, and outcomes. The second part will outline different revolutionary processes, zooming on scientific revolutions, technology revolutions, and industrial revolutions. There, industrial revolutions and its main elements are investigated in detail, showing how technological innovations lead to dramatic changes of the social reality. By comparing characteristics of the first, second, and third industrial revolutions, there is proposed a model defining the elements of the Fourth Industrial Revolution. Finally, there is discussed a model outlining how of industrial revolutions can change and transform the social institutions.

Understanding Mechanics of Smooth Institutional Transformation

Institutions, similar to other human and social undertakings, emerge and evolve following different social dynamics. The third chapter aims to discover some of the mechanisms behind smooth institutional transformations and the main elements and characteristics of institutional change. The first part makes an overview of the neo-institutional schools and their considerations for institutional change. The second part defines the basic elements of institutional change, including the analysis of exogenous and endogenous processes and characteristics. The third part outlines the agency view of institutional change and proposes an analysis of theoretical concepts of institutional entrepreneurship, institutional work and proto-institutions, the types, processes, and stages of institutional transformation. Based on that, in the discussion part, there is presented a model defining how new technology can affect institutional change combining micro and macro perspective and social actors. Finally, there are analyzed the main criteria for successful transformation of the institutionalization process.

Institutions as Designers of Better Social Games

Institutions predefine and make possible development of many social processes. As already discussed, institutions define “the rules of the game,” encouraging further social and organizational transformations. The aim of Chapter 6 is to propose an alternative approach for shaping the future institutions. By assuming institutions to be game-designers of complex social systems, there are explored the main mechanisms and elements of the game-design. Following this approach, the author discusses how institutions can transform to designers of new types of rules and social arrangements that will be more just and efficient for all. The structure of the chapter is as follows: In the first part there are identified the main elements of the game design, including game-mechanics, game-play, and game-word. The second part makes analysis of social ecosystems, where the new types of rules and regulations can stimulate creativity and innovations. Finally, an analysis is made about how institutions can figure out the gamification models and transform in order to promote new type of development and social cohesion. In this respect, Chapter 6 aims to propose an experiment of thought, discussing how to design more efficient and more socially just rules and regulations that can further ensure our sustainable development.

Why Institutions Matter

Institutions play a crucial role both on an individual and on a societal level. Many of the personal life choices as well as the decision making on an organizational level and the development of the society as a whole are functions of various institutional arrangements. In the second chapter, the author defines institutions and their characteristics, elements, and functions. By analyzing the complex framework of institutional settings and rules, the author further points out what makes institutions a unique human achievement and why understanding of their functions will be crucial for the defining path ahead. Further, an overview of the rules and regulations sum up their functions as main ingredients of the social interactions. The last part proposes an in-depth study and analysis of the mechanisms by which new technologies influence institutional settings.

Organizations Facing the Disruptive Change

Organizations take the lead of any innovation process and thus they pave the way for further social changes. Small companies and start-ups are in the avant-garde of innovations, proposing disruptive solutions on the market. In the present chapter the author will analyze the role of organizations in the framework of new digitalization shift. The first part of the chapter will discuss organizational development from institutional point of view. Then there will be outlined the main understanding of organizational change, organizational change management in the framework of the system theory. Further there will be assessed the mechanisms and methodologies for measuring maturity assessment models and its impact on organizational capacity to adopt new technologies. Finally, there will be analyzed some of the key findings of digitalization processes including business model innovations and organizational transformation. In the end, a general analysis will be made about digitalization shifts, company transformation, and the role of the institutions in this process.

Introduction to Digital Transformation in Era 4.0

The robotic era currently attracts the attention of experts and professionals in the digital fields. Policymakers, leaders, scholars, and public authorities and experts have to make decisions and formulate what will be the next digital transformation. In the first chapter, the author proposes an overview of the basic technologies and digital concepts, defining Industry 4.0 and its potential as source of disruptive changes. The chapter is structured as follows. First there are the main concepts behind Industry 4.0 technologies and the characteristics of the digital technologies. Then there are conceptualized some of the unique technology elements, functionalities, and implementations, outlining their disruptive potential to outperform the existing paradigm. Finally, there are identified some general complex system applications and implementation models, focusing on their impact to transform dominant mental models and institutional bases.