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Leading Manufacturing Sectors in the USA and Japan During 1899-1937 and Organizational Innovations: Embeddedness for Corporate Strategy


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    Organizational innovations (OIs) such as scientific management, integration of mass production and mass distribution, and particular types of corporate governance played a preponderant role in the economic development of the USA during the period 1880s to 1920s. To provide some further evidence of this role, historical data analyzed by Kuznets (1971) are scrutinized in this paper by calculating total factor productivity (TFP) for manufacturing sectors in the USA, and the impact of OIs on leading sectors is briefly explored in the light of these TFPs. Thus this paper provides quantitative evidence that leading sectors are linked with OIs during the examined period. In the light of this evidence the following proposition is made: leading sectors and OIs can be considered as a process of ‘embeddedness’ (Granovetter, 1985) for corporate strategy, governance, and leadership.

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    Bibliographic Info

    Paper provided by School of Economics, University of Wollongong, NSW, Australia in its series Economics Working Papers with number wp02-20.

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    Length: 13 pages
    Date of creation: 2002
    Date of revision:
    Handle: RePEc:uow:depec1:wp02-20

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    Postal: School of Economics, University of Wollongong, Northfields Avenue, Wollongong NSW 2522 Australia
    Phone: +612 4221-3659
    Fax: +612 4221-3725
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    Keywords: manufacturing sectors; USA; Japan; embeddedness; corporate strategy;

    This paper has been announced in the following NEP Reports:


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    1. Sanidas, Elias, 2002. "Manufacturing Sectoral Growth in the USA and Japan: Relevance to SMEs, Organizational Innovations, and Recent Economic Growth," Economics Working Papers wp02-09, School of Economics, University of Wollongong, NSW, Australia.
    2. repec:fth:harver:1487 is not listed on IDEAS
    3. Sanidas, E., 2001. "The Successful Imitation of the Japanese Lean Production System by American Firms: Impact on American Economic Growth," Economics Working Papers wp01-02, School of Economics, University of Wollongong, NSW, Australia.
    4. David, Paul A, 1990. "The Dynamo and the Computer: An Historical Perspective on the Modern Productivity Paradox," American Economic Review, American Economic Association, vol. 80(2), pages 355-61, May.
    5. Nyland,Chris, 1989. "Reduced Worktime and the Management of Production," Cambridge Books, Cambridge University Press, number 9780521345477.
    6. Sanidas, E., 2002. "Organizational Innovations of Firms from the 1850s in the USA and Japan," Economics Working Papers wp02-06, School of Economics, University of Wollongong, NSW, Australia.
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