Jenga Capitalism and the Cyber-Energy-Production Plexus: New forms of Risk and Uncertainty that are Reshaping Economic Geography

Risk management is an on-going intra- and inter-firm process that blends macro- and micro-level processes. The micro-level processes are critical as these reflect the ways in which individuals and groups identify and perceive risk and uncertainty and highlight the importance of developing a micro-foundational approach to risk management. This chapter begins by exploring new types of risk that have emerged based on system convergence, including enhanced connectivity related to the emergence of a global plexus that emerges from coupling together national cyber-energy-production plexuses. This enhanced connectivity is central to debates on Global Production Networks or Global Value Chains that celebrate the benefits of internationalisation. Benefits come with risks, and these include extra-network effects. System convergence is creating possibilities for new domino effects or chain reactions that result in new forms of risk and uncertainty. The outcome is the emergence of a new form of capitalism – Jenga Capitalism. This new era of Jenga capitalism comes with enhanced risks and a key issue is the geographic and network reach of these impacts rather than their duration. This chapter outlines the features of Jenga capitalism and frames this within a multi-scalar framework informed by the application of a micro-foundational perspective.