The Transformation of Work in a Global Knowledge Economy

Abstract

Dynamic changes in the global labor market, the need for innovation and the integration of digital technology in the processes and coordination of economic transactions through digital networks known as ‘platforms’ have led to changes in business practices and forms of labor. The global market has opened up innumerable opportunities for free-lancers, who are outsourced to by firms worldwide. Influenced by modern technologies, the way people do business changes and moves from internally focused to externally managed companies. According to the method of running companies, three basic types can be distinguished: Innovation platform companies; Transaction platform companies; and Integrated platform companies. Managers can foster collaboration between traditional and contract workers as well as make strategic plans for engaging contract workers. Digital skills are becoming an important prerequisite for employment worldwide, but a significant portion of the population still lacks the skills needed to function in a digital business environment.