Castells stated that the new network society is dominated by a new techno-economic paradigm based on information networks-informationalism
(Cabot, 2003, p.1148). Castells
(2004) definition of informationalism is a technological paradigm based on the augmentation of the human capacity of information processing and communication made possible by the
revolutions in microelectronics, software, and genetic engineering
(p. 11). Information processing and communication, like newspapers, radios, and televisions, existed in history too.
However, information technologies were not fundamental materials for development in the past industrial economy. The informational economy depends on the capacity of networks. Thus, without the
capacity provided by these new technologies, the new economy would not be able to operate, as the industrial society could not fully expand without electricity (Castells, 2004).
Whereas the industrial economy was based on a value chain from manufacturers to retailers, the information economy created various positions related to information technologies and the networks
in the value chain such as designers, operators, and integrators. The information economy requires a greater number of highly intelligent laborers that can manage and control the technologies
than in an industrial economy. Moreover, there are comparatively more opportunities to create a profit in the network industry or information industry than in other industries. Due to the
importance of the networks and communication technologies in the new economy, networks, as a new material for new economy, began to formulate social power, and the members exploiting the
ability of networks began to acquire social power (Gerstner, 1999). For example, the network enterprise is the prevailing form of business organization in information economy, since it follows
a complete transformation of relationships of production and management
(Castells, 2000b, p.607).
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