A second-order cybernetic explanation for the existence of network direct selling organisations as self-creating systems

Abstract

Network Direct Selling Organisations (NDSOs) exist in more than 50 countries and have more than 74 million members. The most recent statistical information reveals that the vast majority of members do not earn significant income. Criticism of these organisations revolves around the ethicality of consumption, the commercialisation of personal relationships, and the exploitation of unrealistic expectations. This study aims to explore how communication creates networks that sustain an industry of this kind despite the improbability of its existence. The study commences with a description of NDSOs from historical, operational, tactical, and strategic perspectives. Given the broader context created by the global presence of this industry, cybernetics has been selected as a meta-theoretical perspective for the study of communication. The more recent development of second-order cybernetics and social autopoiesis are introduced to communication theory as a field. Niklas Luhmann‟s new social theory of communication is assessed and applied in relation to existing communication theory. New conceptual models are developed to explore communication as the unity of the synthesis of information, utterance, understanding, and expectations as selections that occur both consciously and unconsciously, intentionally and unintentionally. These models indicate the multiplexity of individual and social operationally closed, yet informationally open systems, and they are used here to provide a systemic and coherent alternative to orthodox communication approaches to the study of organisations. The study adopts a constructivist epistemological stance and propounds throughout the necessity of further interdisciplinary collaboration. The study concludes that individuals are composite unities of self-creating systems, and they co-create social systems by self-creating and co-creating meaning. Meaning is described as the continuous virtualisation and actualisation of potentialities that in turn coordinate individual and social systems‟ actions. A communication process flow model is created to provide a theoretical explanation for the existence of NDSOs as self-creating systems. The study aims to show that communication has arguably become the most pervasive discipline as a result of the globally interactive era. It is shown that second-order cybernetics and social autopoiesis raise several further questions to be explored within communication theory as a field.