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

Author

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  • 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.

Suggested Citation

  • Bengt-Åke Lundvall & Frank Skov Kristensen, 1997. "Organisational Change, Innovation and Human Resource Development as a Response to Increased Competition," DRUID Working Papers 97-16, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  • Handle: RePEc:aal:abbswp:97-16
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    File URL: https://wp.druid.dk/wp/19970016.pdf
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    References listed on IDEAS

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    1. 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.
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    3. Dieter Ernst, 1998. "High-Tech competition puzzles - How globalization affects firm behavior and market structure in the electronics industry," Revue d'Économie Industrielle, Programme National Persée, vol. 85(1), pages 9-30.
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    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. 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.
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    16. 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.
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    Citations

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    Cited by:

    1. 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.
    2. Bernhard Dachs & Martin Hud & Christian Köhler & Bettina Peters, 2016. "Employment Effects of Innovations over the Business Cycle: Firm-Level Evidence from European Countries," CREA Discussion Paper Series 16-20, Center for Research in Economic Analysis, University of Luxembourg.
    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. 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.
    5. repec:iab:iabmit:v:35:i:4:p:506-522 is not listed on IDEAS

    More about this item

    Keywords

    Innovation; competition; human resources;

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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