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 5: The Process of Firm Operations: Core of the Atomic/Systemic Model of Economic Growth

Elias Sanidas

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


5. The process of firm operations: core of the atomic/systemic model of economic growth 5.1 INTRODUCTION In the previous three chapters, OIs were at the centre of the analysis in order to demonstrate the need and the importance of the link between OIs and economic growth. In Chapter 2, a historical survey of the industrial growth of the USA and Japan revealed that OIs played a substantial role in promoting this growth in the last 130 years or so. In Chapter 3, the first general links between OIs, TIs and economic growth were established from a theoretical aspect. In Chapter 4 these links became more concrete as very specific OIs were scrutinized in both countries, again from a theoretical viewpoint. More particularly, in the last section of Chapter 4, it was proposed that the ‘main’ axis of intrafirm operations, represented by the Fordism cum JIT/QC alignment, was the predominant force generating industrial growth (ceteris paribus regarding the other axes of the analysis). In this chapter, it remains to justify further why this main axis can be considered as the predominant force. This can take place by further examining the nature of firm activities or operations in order to advance deeper into the core (firm) of industrial evolution. The need for a deeper analysis also comes from two other factors; first, OIs are related to a different process of firm activities from that of TIs and, second, industrial growth is generated by specific firms that lead the overall...

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