Organizational Innovations and Economic Growth

Organizational Innovations and Economic Growth

Organosis and Growth of Firms, Sectors and Countries

Elias Sanidas

Analysing the USA and Japan from the late 19th century to the present day, the book provides an accessible synthesis of economics, management and econometrics to calculate the impact of various organizational innovations on economic growth. The author concludes that organizational innovations make essential contributions to sustained economic growth and that this should be reflected in economic policy both at the firm and the national level.

Chapter 1: Introduction

Elias Sanidas

Subjects: business and management, organisational innovation, organisational behaviour, innovation and technology, organisational innovation

Extract

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 [1990]). Closer to our era, the Industrial Revolution that began in Britain about 200 years ago...