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Organisational Change, Innovation and Human Resource Development as a Response to Increased Competition

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Author Info

  • Bengt-Åke Lundvall
  • Frank Skov Kristensen

Abstract

This paper draws upon a questionnaire survey, conducted 1996 in 1900 Danish Firms, on technical and organisational change. The topics in the survey were among others if firms been through significant organizational change, how the firm had developed its human resources, and what were the motives for organizational change. Our analysis shows that more intense competition is a primary driving force behind organisational change and technical innovation. Firms are divided into three groups (the C-firms, the A-firms and the S-firms), according to how fare the intensity of competition had changed in recent years. The propensity to change and adapt is much higher among the firms that have experienced the strongest rise in competition (the C-firms). Further we show that there is a very clear and consistent direction of change among the C-firms. The C-firms tend to change towards what in broad terms is called organisational and functional flexibility. The C-firms emphasise human ressource development, apply modern management tools and introduce innovations related both to products and processes, to a much higher extent than the other firm types. But they are also more selective in their hiring of new labour. At the end some policy implications that relate to the marginalisation of the unskilled workers are sketched.

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Bibliographic Info

Paper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number 97-16.

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Date of creation: 1997
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Handle: RePEc:aal:abbswp:97-16

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Web page: http://www.druid.dk/

Related research

Keywords: Innovation; competition; human resources;

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References

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  1. Richard N. Langlois & Nicolai J. Foss, 1996. "Capabilities and Governance the Rebirth of Production in the Theory of Economic Organization," Working papers 1996-02, University of Connecticut, Department of Economics.
  2. Dieter Ernst, 1997. "High-Tech Competition Puzzles. How Globalization Affects Firm Behavior and Market Structure in the Electronics Industry," DRUID Working Papers 97-9, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  3. Peter Maskell, 1996. "Localised Low-tech Learning in the Furniture Industry," DRUID Working Papers 96-11, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  4. Dieter Ernst & Bengt-Ake Lundvall, 2000. "Information Technology in the Learning Economy: Challenges for Developing Countries," Economics Study Area Working Papers 08, East-West Center, Economics Study Area.
  5. Bengt-Åke Lundvall, 1996. "The Social Dimension of the Learning Economy," DRUID Working Papers 96-1, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  6. Nicolai J. Foss, 1996. "Capabilities and the Theory of the Firm," Revue d'Économie Industrielle, Programme National Persée, vol. 77(1), pages 7-28.
  7. Nicolai J. Foss, 1996. "Thorstein B. Veblen Precursor of the Competence-Based Approach to the Firm," DRUID Working Papers 96-15, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  8. S. Baranzoni & P. Bianchi & L. Lambertini, 2000. "Market Structure," Working Papers 368, Dipartimento Scienze Economiche, Universita' di Bologna.
  9. Nicolai J. Foss, 1996. "Firms, Incomplete Contracts and Organizational Learning," DRUID Working Papers 96-2, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  10. Keld Laursen & Ina Drejer, 1997. "Do Inter-sectoral Linkages Matter for International Export Specialisation?," DRUID Working Papers 97-15, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  11. Esben Sloth Andersen, 1996. "The Evolution of an Industrial Sector with a Varying Degree of Roundaboutness of Production," DRUID Working Papers 96-13, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  12. Ina Drejer & Frank Skov Kristensen & Keld Laursen, 1997. "Studies of Clusters as a Basis for Industrial and Technology Policy in the Danish Economy," DRUID Working Papers 97-14, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  13. Bent Dalum & Keld Laursen & Gert Villumsen, 1996. "The Long Term Development of OECD Export Specialisation Patterns: De-specialisation and "Stickiness"," DRUID Working Papers 96-14, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  14. Nicolai J. Foss, 1997. "The Resource-Based Perspective An Assessment and Diagnosis of Problems," DRUID Working Papers 97-1, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  15. Nicolai J. Foss & Jens Frøslev Christensen, 1996. "A Process Approach to Corporate Coherence," DRUID Working Papers 96-7, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  16. Nicolai J. Foss, 1997. "Incomplete Contracts and Economic Organization Brian Loasby and the Theory of the Firm," DRUID Working Papers 97-11, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  17. Esben Sloth Andersen & Anne K. Jensen & Lars Madsen & Martin Jørgensen, 1996. "The Nelson and Winter Models RevisitedPrototypes for Computer-Based Reconstruction of Schumpeterian Competition," DRUID Working Papers 96-5, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
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Cited by:
  1. repec:iab:iabmit:v:35:i:4:p:506-522 is not listed on IDEAS
  2. Jukka Kaisla, 1998. "The Market Process and the Emergence of the Firm Some Indications of Entrepreneurship Under Genuine uncertainty," DRUID Working Papers 98-17, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  3. Frank Skov Kristensen, 1997. "The Performance of Different Organisations under Different Marked Conditions An Empirical Analysis of the Organisational Structure and Performance of 1900 Danish Firms [Revised Feb. 12th. 1999]," DRUID Working Papers 97-13, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  4. Dieter Ernst, 1999. "Responses to the Crisis Constraints to a Rapid Trade Adjustment in East Asia�s Electronics Industry," DRUID Working Papers 99-2, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.

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