The Influence of Digitalization on Work, Prosperity and Entrepreneurship

Sectorplan SSH-Breed
Polak Building outside in the sun.
Logo of SSH-breed.

The Sectorplan SSH-Breed (Dwars Doorsnijdend Thema) is dedicated to the societal effects of digitalization, looking at it from five different perspectives. The contribution from Erasmus University Rotterdam is fully focused on the effects of digitalization on work, prosperity and entrepreneurship.

The interdisciplinary Erasmus Sectorplan SSH-Breed is one of the three plans in the SSH sector that received funding. This Sectorplan SSH-Breed is completely dedicated to the societal effects of digitalization, looking at it from five different perspectives. At EUR this plan involves Erasmus School of Economics (ESE), Erasmus School of History, Culture and Communication (ESHCC), Erasmus School of Law (ESL), Erasmus School of Philosophy (ESPhil), Erasmus School of Social and Behavioural Sciences (ESSB), and Rotterdam School of Management (RSM).

Scope of the programme

The stability and sustainability of a society derives to a large extent from the way its members earn their daily bread. What kind of work do they do? Is everyone able to participate in the labour market? Do opportunities for entrepreneurship exist and is innovation sufficiently facilitated? What is the basis for prosperity and how is wealth divided?

Due to digitalization of work in and increasingly outside traditional organizations, the answers to the previous questions – as well as many other related questions – are changing fundamentally and at an unprecedented pace. For instance, cloud computing together with low latency network technology has resulted in the death of distance, rendering it less necessary and often even unnecessary to come to a specific location in order to work (together). Stimulated by the changes required as a result of the Covid-pandemic, all kinds of online interactions that we used to consider unusual or even illegitimate, such as online shareholder meetings, have suddenly become business as usual. 

Besides the physical aspect of working, also its organizational aspects have changed. The number of self-employed people who offer their services through the Internet has exploded. “Influencer” has become a new type of job with significant appeal to many. The platform economy is growing rapidly, and is expected to constitute 30% of the total global economy by 2030.

Furthermore, the nature of work in many sectors is changing due to digitalization. For instance, the increasing monitoring of our behaviour through smart technologies and the growing use of AI can be the basis for clever suggestions to improve the way we work and efficiency, but it can also undermine the right to be let alone.  
Last but not least, the rapidly growing availability of data about products, processes, consumer behaviour and investments by competitors, deeply affects how we make decisions in the context of work, prosperity and entrepreneurship. In our work, how can we make better use of the vast amounts of data that is available in cyberspace and how can we make sure that we draw the right conclusions, despite the enormous volume of data that confronts us?

Given that all questions and challenges mentioned concern rapid developments, no time is to be lost in studying and understanding these developments profoundly. By combining expertise from a wide range of disciplines, we aim to develop a better understanding of the enormous opportunities associated with digitalization for individual workers, their organizations and society as a whole. Simultaneously, we also aim to develop a more profound comprehension of its disadvantages and risks. Both from an academic and a societal point of view this represents a tremendous challenge in relation to a rapidly moving target, and to address it effectively, expertise from all social sciences and humanities involved will be indispensable.

Overview of the themes

Against the background of this overall topic, five themes have been defined within 'The influence of digitalization on work, prosperity and entrepreneurship:

The digital society theme facilitates research on digital democracy and its connections with social knowledge, work, and social justice, broadly construed. 

The digitalization of global society and contemporary culture offers unprecedented opportunities for participation, collaboration, and communication. More particularly, for work, prosperity and entrepreneurship digitalization provides a broad range of opportunities that affects us both as employees or entrepreneurs and as citizens and consumers. This allows us to rethink notions of prosperity and democracy to include the opportunities afforded by technologies. 

However, the fact that the rules for working and for creating wealth can be and are redefined at a fundamental level is not only good news. Parallel to the development of the new opportunities outlined above, large global players, such as big tech companies and certain powerful nation states, are transforming the global societal ecosystem in a top-down manner that merits rigorous scrutiny. They drive a transformation that renders obsolete many of the guarantees, safeguards and controls concerning work that have been gradually put in place in the past 120 years especially in the EU. These risks manifest themselves, for instance as unfairness, algorithmic discrimination, misinformation, exploitation and alienation. 

This theme asks critical questions that shape the macro approach of SSH breed, not only examining societal determinants of prosperity, work and entrepreneurship, but also questioning these concepts themselves and the assumptions that underlie them. Some examples of questions are: What are appropriate normative frameworks to assess the ethics of digitalization, for instance concerning algorithmic fairness? What challenges does digitalization pose for the normative theory of the labour market? What is the responsibility of the government, for instance regarding the rapidly expanding platform economy or the existing systems for taxation? What should be expected from the private sector, to make sure that digitalization acts as an engine for inclusive prosperity? What are the methodological changes needed to address such issues adequately? How do the skills required for professional success and participatory citizenship change? What can be done to mitigate negative effects of digitalization for the working and non-working population? What is necessary to better reap its possible benefits?

Leads

WhoFacultyContact
Nicholas VrousalisErasmus School of Philosophyvrousalis@esphil@eur.nl
João Ferreira GonçalvesErasmus School of History, Culture and Communication ferreiragoncalves@eshcc.eur.nl

Members

WhoFacultyContact
Sarah BertrandErasmus School of History, Culture and Communicationbertrand@eshcc.eur.nl
Ofra KleinErasmus School of History, Culture and Communicationklein@eshcc.eur.nl
Giulia NapolitanoErasmus School of Philosophynapolitano@esphil.eur.nl
Yagmur OzdemirRotterdam School of Managementozdemir@rsm.nl
Chandrika RatheeRotterdam School of Management rathee@rsm.nl

 

Digitalization and platformization of work processes and products, organizational and legal aspects of digital transformation, impact of digitalization.

Within this theme, we look at the legal and organizational aspects of digitalization in the area of work processes and products. Digitalization is understood broadly, which means a wide variety of issues related to digital transformations are included in our research and teaching endeavors. Digitalization can relate to content matter, such as the development of digital products. It can also relate to processes, such as selling products and providing services via online platforms or using digital tools when governing a firm.  

Application of digital tools can have both advantages and risks. For example, digitalization may contribute to more efficiency, higher turnover, and the attainment of sustainability goals. But digitalization may also have unwanted (side-)effects, for example rapid 24/7 small deliveries of groceries facilitated via online platforms is convenient, but not very sustainable and has led to traffic safety issues in cities. Another issue is the accountability (and related liability) for systemic risks. 

Questions that can come up are: what is the impact of digitalization on organizations and people? How are work-processes affected? What measures should be taken to optimize the results that can be achieved by digitalization? How can the risks or disadvantages be avoided or minimized? Is the legal framework adequate to facilitate digitalization and at the same time mitigate the risks? Should the legal framework be adapted and if so, how? 

Accountability, manageability, and optimization are key topics, which can be related to: 

  • creation and governance of legal entities;
  • the nature of work processes and their results;
  • the mechanisms for trade and service delivery, including the rise of the platform economy; 
  • payment for products and services. 

Lead

WhoFacultyContact
Martien SchaubErasmus School of Lawschaub@law.eur.nl

Members

WhoFacultyContact
Kathrin BornerRotterdam School of Managementborner@rsm.nl 
Sean BrüggemannErasmus School of Economicsbruggemann@ese.eur.nl
Léon DijkmanErasmus School of Lawdijkman@law.eur.nl 
Julie HoppenbrouwersErasmus School of Lawhoppenbrouwers@law.eur.nl
Titiaan KeijzerErasmus School of Lawkeijzer@law.eur.nl
Julia KrämerErasmus School of Lawj.k.kramer@law.eur.nl
Shu LiErasmus School of Lawli@law.eur.nl
Clemens MüllerErasmus School of Economicsc.mueller@ese.eur.nl
Eugene PuynRotterdam School of Managementpyun@rsm.nl
Enrique Santamaria Echeverria Erasmus School of Lawsantamariaecheverria@law.eur.nl
Josje de VogelErasmus School of Lawdevogel@law.eur.nl
Cees ZweistraErasmus School of Lawzweistra@law.eur.nl

New ways of working, algorithmic management, employment relationships, AI-driven strategy, digital transformation. 

Due to technological advancements and for instance the unprecedented level of digital trace data, digital technologies will continue to (re)shape work and organizing. These new ways of working (NWW) will affect private and public organizations, work and jobs within and outside the organization, employees and their well-being, their competences, the relation between supervisors and their employees, and how they are governed. 

Researchers within this theme will focus on research questions on the level of the organization and the network as well as at the level of individual workers and teams, e.g. on how organizational level changes are related to individual level outcomes. While it is expected that digitalization and other kinds of technology affect organizational governance, leadership, employment relationships, labor relations and institutions, and the design of incentives and compensation, much remains to be investigated due to the recent developments in the fields. Of particular interest is how the changes differ across economic sectors, in particular between private and public organizations. A central issue in that regard concerns the level of freedom that organizations have with regard to their design, or whether these new technologies are deterministic and leave little room to maneuver. 

Central questions to be answered are:  

  • What are the main effects of digitalization for organizations and which choices do organizations have to implements forms of digitalization?  
  • How does digitalization affect organizational governance and the employment relationship?  
  • What are the effects of new ways of working (including virtual and hybrid working) for employees’ well-being and organizational performance? How are these related to sectoral differences?  
  • How do AI-enhanced new ways of working affect employee well-being and overall organizational performance? Are there sectoral nuances in these impacts, and how can organizations tailor their AI strategies to maximize benefits and minimize drawbacks? 
  • How can organizations influence these effects on well-being and performance?  
  • How much influence does the new employee have on the adoption and the outcomes of digital technologies (either directly or via collective representation)?   
  • How does algorithmic management affect work design and the meaningfulness of work?  
  • How does digitalization relate to the decline of ‘standard’ work arrangement and how does that, subsequently, relate to precarious employment?  
  • What do these changes mean for vertical (leadership) and horizontal relationships within organizations? What specific challenges does leadership in a digital context encounter?  
  • In what ways does AI influence organizational governance, leadership styles, and the evolution of employment relationships? How can organizations navigate the challenges of AI integration to foster a productive, inclusive, and bias-free workplace? 

Lead

WhoFacultyContact
Ferry KosterErasmus School of Social and Behavioural Scienceskoster@essb.eur.nl

Members

WhoFacultyContact
Mattia ColomboErasmus School of Economicscolombo@ese.eur.nl
Greetje CorporaalRotterdam School of Managementcorporaal@rsm.nl
Sophia FrickErasmus School of Social and Behavioural Sciencesfrick@essb.eur.nl
Francisca GromméErasmus School of Social and Behavioural Sciencesgromme@essb.eur.nl
Daphne van HeldenErasmus School of Social and Behavioural Sciencesvanhelden@essb.eur.nl
Joëlle van der MeerErasmus School of Social and Behavioural Sciencesj.j.s.vandermeer@essb.eur.nl
Elien VoermansErasmus School of Economicsvoermans@ese.eur.nl

The theme Digital Decision Support develops and studies methods and applications for helping individuals and organizations to make better decisions and become more effective in reaching their goals.

Decision makers need to make informed decisions to effectively reach their goals. This theme therefore aims to develop and improve methodology for obtaining data-driven insights in contexts of the digital society.  How can digital technology be used to improve decision making? What methods are necessary to enable this? How can we ensure that methods are statistically sound and robust? How do we ensure that technologies such as AI remain fair, explainable, and aligned with the goals in organizations and society? How does increased digital decision support affect human decision making? Does digital decision support always improve decision quality for everyone? 

Digitalization has contributed to a dramatic rise in the amount of data available in professional contexts. This has had a large impact on how decisions are made in individuals, companies, other organizations, and in society in general. In principle, the availability of detailed data allows people and organizations to better understand their environment. Digital media also offer increasing possibilities to support behavioral change based on such data, which can improve wellbeing and increase productivity.  

However, actually obtaining knowledge from the abundantly available data is not straightforward. The intrinsic value of the data increases with more detail and so does the complexity of the analysis task. Although there are rapid developments in artificial intelligence and machine learning, these methods are not always directly applicable to business or societal questions due to low predictability in those domains. Further work is needed to tailor methods for applications in these fields in general and related to work, prosperity, and entrepreneurship in particular. In addition, the impact of applications of digital decision support tools in, for instance, human resource management, related health psychology, logistics, marketing, finance, and accounting will be studied, both at the level of individuals and of organizations as a whole. 

Lead

WhoFacultyContact
Andreas AlfonsErasmus School of Economicsalfons@ese.eur.nl
Paul KockenErasmus School of Social and Behavioural Scienceskocken@essb.eur.nl

Members

WhoFacultyContact
Hakan AkyuzErasmus School of Economicsakyuz@ese.eur.nl
Carlo CavicchiaErasmus School of Economicscavicchia@ese.eur.nl
Kathrin GruberErasmus School of Economicsgruber@ese.eur.nl
Onno KleenErasmus School of Economicskleen@ese.eur.nl
Olga KuryatnikovaErasmus School of Economicskuryatnikova@ese.eur.nl
Marta MarciniakErasmus School of Social and Behavioural Sciencesmarciniak@essb.eur.nl
Shwetha MariadassouRotterdam School of Managementmariadassou@rsm.nl
Yaniv MorgensternErasmus School of Social and Behavioural Sciencesmorgenstern@essb.eur.nl
Gilian PonteRotterdam School of Managementponte@rsm.nl
Eric SlobErasmus School of Social and Behavioural Sciencese.slob@essb.eur.nl

Digitisation of work provokes cyber risks, and security responses in turn provoke dilemmas and a search for best practices across diverse sectors. 

The widespread interconnectivity and the proliferation of data has become an attractive target to criminals and other malicious actors who exploit it in a variety of ways. This may take the form of social engineering practices in which people are manipulated to provide secure or confidential information voluntarily or through hacking, when outside persons infiltrate a network of devices for various illegitimate purposes. Furthermore, in professional environments digital (sexual) harassment can bring devastating consequences for the often vulnerable victims. Companies and public authorities are trying to address these risks by stepping up digital surveillance. This comprises a wide spectrum of initiatives – including the use of so-called smart applications – that are based on ‘big data’ and ‘artificial intelligence’. This enhanced surveillance may produce (social) benefits but also evokes specific new risks, and not only in the field of privacy. Thorough research is needed to understand the core elements of this shifting ‘playing field’.  

Furthermore, the fact that digital platforms collect large amounts of data on markets and consumers to improve products and services poses serious challenges for data protection legislation, especially within critical infrastructures systems. Law enforcement agencies will be interested in the collected information which might include evidence of criminal behaviour of citizens. Since digital platform economies are often transnational, it is difficult for law enforcement to get access to this information. Traditional interstate judicial cooperation instruments are not effective in this regard. Therefore, new legal instruments must be created on a national and international level.  

Finally, digital platform economies are dominated by highly competitive entities that focus on technological innovation and (artificial) intelligence, but typically still need some (low cost) human labour force. The latter offers opportunities for undocumented and other labour migrants. They will find themselves in an environment where labour relations are poor, leaving room for possible inequalities deriving from their migration status, ethnicity, and gender. They may also be compelled to engage in criminal online activities. Research in this field should focus on where this amounts to discrimination and exploitation of vulnerable workers.  

We therefore pay attention to the many ways in which employers, employees and job candidates are downstream from securitisation of digital infrastructures. Theme 6 investigates the criminal and wider societal risks deriving from increased digitalization, including how these risks develop as digital technologies become ever more ubiquitous and the magnitude of the threat they constitute? What vulnerabilities are incorporated in specific algorithmic approaches but also in regular social media communication? How do these and other examples of use of digital media facilitate crime and how should this be addressed? How could legislation help to mitigate cybercrime? What can be done to help victims of cybercrime, and how can we help people to recognize the threats? What changes in professional behaviour would be needed to better address cyber risks, e.g., by becoming more sensitive to virtual deception or to sharing data and in general by increasing cyber hygiene? How could digital support help to detect suspect online transactions, e.g., in the financial sector?  We work with a multidimensional understanding of work and the workplace that includes public-facing forms of strategic communication. 

To address this topic – both to understand and effectively respond to cyber risks – requires input from various disciplines. Both cyber-criminal activity and its mitigation have economic effects on an organization and on its victims, costing time, productivity and resources. Given the vulnerabilities of systems, ensuring appropriate regulatory measures are made and enforced with the use of legacy, current and future technology. This requires effective communication and an understanding of the mediated practices of users. These differing approaches also provide an opportunity to develop more holistic approaches to cyber secure practices that move beyond binary divisions between technology and the human factor, towards the recognition that cybersecurity is always part of an integration of human practices with technological use. The potential connection of AI enabled identification of cybersecurity risks combined with behavioural changes at a personal and organizational level are key to achieving more stable and less vulnerable contexts in multiple domains.

Lead

WhoFacultyContact
Alberto QuintavallaErasmus School of Lawquintavalla@law.eur.nl
Daniel TrottierErasmus School of Economicstrottier@eshcc.eur.nl

Members

WhoFacultyContact
Elise AlkemadeErasmus School of History, Culture and Communicationalkemade@eshcc.eur.nl
Aviv BarnoyErasmus School of History, Culture and Communicationbarnoy@eshcc.eur.nl
Clara BogginiErasmus School of Lawboggini@law.eur.nl
Julia KrämerErasmus School of Lawj.k.kramer@law.eur.nl
Enrique Santamaria Echeverria Erasmus School of Lawsantamariaecheverria@law.eur.nl
Sascha van SchendelErasmus School of Laws.vanschendel@law.eur.nl
Wouter ScherpenisseErasmus School of Lawscherpenisse@law.eur.nl
Sophie van der ZeeErasmus School of Lawvanderzee@ese.eur.nl
Cees ZweistraErasmus School of Lawzweistra@law.eur.nl

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