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 2: Organizational Innovations from the 1860s in the USA and Japan

Elias Sanidas

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

Extract

2.1 INTRODUCTION The primary aim of this chapter is to pinpoint the most significant and essential OIs in the USA and Japan. The period examined is approximately from the 1860s to the present. However, two sub-periods will be more closely scrutinized, the 1880s to 1920s and the 1950s to 1990s, of approximately 40 years each. During these two sub-periods the so-called Second Industrial and Third Industrial Revolutions took place. The first two sections will examine the historical evolution of OIs up to World War II (the first section for the USA and the second for Japan). The next two sections will examine the historical evolution of OIs from World War II onwards (the third section for the USA and the fourth for Japan). Finally, in the fifth section, a brief comparison between the two countries in terms of OIs will be undertaken. In this historical survey the analysis will concentrate on the detection of the main OIs and their evolution, thus avoiding as much as possible any links with economic theories. These links will be made in the following three chapters. Finally, note that this chapter does not provide a comprehensive history of all OIs in the two countries; rather, its aim is selectively to pinpoint the aspects and nature of the major OIs that will be useful for the present study. 2.2 OIs IN THE USA UP TO WORLD WAR II This section is primarily based on Chandler’s pioneering work on the evolution of big business. However, it...

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