Organosis and Growth of Firms, Sectors and Countries
Chapter 1: Introduction
1.1 BACKGROUND The objective of this research is to answer the following questions: have organizational innovations (OIs) signiﬁcantly and positively impacted on economic growth, and can this be shown both quantitatively and qualitatively? As adjuncts to this main question, some other issues need to be answered. First, can OIs be successfully transferred from one country to another? In particular, is it possible to provide quantitative evidence that the so-called lean production system of Japan, with its corollary of just-in-time/ quality control (JIT/QC), has been successfully operating in the USA with a signiﬁcant effect on this country’s sectoral and hence macro growth? Second, what are the links between OIs and economic growth from a theoretical point of view? Table 1.1 summarizes the major OIs that have taken place over the last 150 years. This non-exhaustive list is based upon the major ﬁndings presented in Chapter 2. This study is devoted to analysing and exploring these OIs in relation to economic growth, with emphasis on the internal OIs of ﬁrms (taking place inside the ﬁrm, for example kanban). Economic activities have been variously organized since ancient times. Farms, estates, mines, shops, craft production and governments are organizational entities that have existed in many areas of the world for at least 3000 years. A large estate was the object of the ﬁrst known economic or management manual ever written, that of Xenophon (circa 370 BC ). Closer to our era, the Industrial Revolution that began in Britain about 200 years ago...