Governing transformation: The case of the collaborative economy Dr Chris Riedy 13 December 2015

The transformative agenda Transformation is our watchword. At this moment in time, we are called to lead and act with courage. We are called to embrace change. Change in our societies. Change in the management of our economies. Change in our relationship with our one and only planet. ~ Ban Ki Moon, 5 December 2014 isf.uts.edu.au

Transformations towards sustainability is one of Future Earth’s three research themes

How do we govern transformation? Governance seeks stability It is a State imperative to maintain order and stability (Dryzek et al. 2003) The multi-level perspective – stable regimes, carbon lock-in, the fossil fuel complex (Geels 2014) Social field theory – incumbents exercise social skill to maintain order in their field (Fligstein and McAdam 2012) isf.uts.edu.au

Research questions How do governance systems, which typically seek to maintain stability, cope with disruption and transformation? Are existing institutions up to the task of leading, facilitating, or at least accommodating transformation towards a sustainable society? Or do they actively impede transformation? isf.uts.edu.au

Social field theory Fligstein and McAdam, 2012 ‘A strategic action field is a constructed mesolevel social order in which actors (who can be individual or collective) are attuned to and interact with one another on the basis of shared (which is not to say consensual) understandings about the purposes of the field, relationships to others in the field (including who has power and why), and the rules governing legitimate action in the field’ (p.9) A ‘central interest in understanding the sources of stability and change in strategic action fields’ (p.12)

Key concepts Fields as the basic building block of modern political / organisational life Field actors include incumbents, challengers and internal governance units Actors deploy “social skill” to pursue their ends Social skill is ‘the ability to induce cooperation by appealing to and helping to create shared meanings and collective identities’ (p.46) isf.uts.edu.au

Social field theory on transformation Transformation happens when the balance of power between incumbents and challengers shifts decisively at times of disruption. This could come about due to the exercise of social skill but opportunities are often created as a result of impacts from proximate fields. ‘Proximate strategic action fields – both state and nonstate – are ordinarily the source of both stability and change in a given field’ (Fligstein & McAdam 2012, p. 85) isf.uts.edu.au

Case study: The collaborative economy What is it? Juliet Schor (2014) Recirculation of goods (e.g. eBay, Craigslist) Increased utilisation of durable assets (e.g. AirBnB, Uber) Exchange of services (e.g. Task Rabbit, Zaarly) Sharing of productive assets (e.g. co-working spaces, Landshare) isf.uts.edu.au

Case study: The collaborative economy Why choose it? Potential for transformation towards sustainability High-profile cases of push-back from governance systems e.g. AirBnB in New York City – 25,000 listings per night, ¾ technically illegal isf.uts.edu.au

Is the collaborative economy a social field? No, it is a label for a loose coalition of social entrepreneurs challenging incumbents in many diverse fields Disagreement on terminology, who is in and who is out Social skill of key actors (e.g. Rachel Botsman) in creating shared meaning for these diverse actors, which has caught media attention But in fact, Uber and AirBnB etc are operating in diverse fields with unique sets of conditions and challenges isf.uts.edu.au

Uber: P2P ride sharing Field: Urban transport (rapid) Incumbents: Taxi drivers and associations, public transport Disruption: Cheaper, on-demand, mobile technology, opening up driver pool Response: Mobilisation of internal governance units (e.g. NSW Taxi Council), taxi driver protests, legal challenges Governments responding with new regulations to legalise Uber (e.g. ACT, NSW) that increase cost to drivers and soften the disruption isf.uts.edu.au

AirBnB Field: Short-term accommodation Incumbents: Hotels, BnBs Disruption: Meet local people, simple search and booking, different travel experience, can be cheaper Response: City government crackdowns, fines for hosts, new regulations governing short-term rentals (e.g. New York, Santa Monica) Some supportive regulations (e.g. Amsterdam and London) isf.uts.edu.au

Findings so far Crucial role of proximate fields in triggering disruption Information technology, social media sharing Common response pattern No response until challengers become a serious threat to incumbents Then incumbents draw on field internal governance units and state allies to defend the status quo The change may be successfully resisted, or a new field settlement is reached Diversity in governance response – what explains this? isf.uts.edu.au

Emerging implications for transformation What is the field we are trying to transform? What are its characteristics? Stable, emerging, in crisis? Are there developments in proximate fields that help to create the conditions for transformation? How can we help successful transformations to spread to proximate fields? How can we collaborate with internal governance units and state bodies to open up opportunities for transformation? How can cross-field coalitions help transformation to proceed?

Thank you Dr Chris Riedy Associate Professor Institute for Sustainable Futures University of Technology, Sydney Phone: 02 9514 4964 or 0402 043 386 Email: criedy@uts.edu.au Blog: http://chrisriedy.me Twitter: @chrisjriedy