It is widely believed that the Information Society and its economic counterpart, the New Economy, require more flexibility especially in the labour market (i.e. less long term contracts) to allow faster reactions to the increased speed of change. The paper argues that increased complexity rather than faster change is the real problem. Dealing with complexity requires adaptability and organisational learning. Short term flexi-bility, however, is detrimental to adaptability and learning as it hinders the accumulation of firm-specific capabilities - and country-specific ones on the macro level. The ability of the firm to absorb and act upon knowledge depends to a large extent on staff continuity.
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Paper provided by Institute of Technology Assessment (ITA) in its series ITA manu:scripts with number
02_03.
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Holmstrom, Bengt R. & Tirole, Jean, 1989.
"The theory of the firm,"
Handbook of Industrial Organization,
in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 2, pages 61-133
Elsevier.
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