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Managament in a New and Experimentally Organized Economy


  • Eliasson, Gunnar

    () (Infrastructure)


The parallel development of management theory and practice over three phases of economic development is surveyed; (1) the pre-oil crisis experience 1969-1975, (2) the post oil crisis sobering up through most of the 1990s and (3) the emergence of new global production organizations , blurring the notion of the firm to be managed. The external market circumstances of each period dictate different structures of business operations ; (a) a steady state and predictable environment, (b) crisis, inflation and disorderly markets and (c) new technology supporting a globally distributed production organization. As a consequence structural learning between the periods has been of limited value and often outright misleading. The influence of management theory on management practice and its origin in the received economic equilibrium model are discussed, and an alternative management theory based on the theory of the Experimentally Organized Economy (EOE) presented. The increased rate of failure among large firms is related to the increasing complexity of business decisions in globally distributed production and the decreased reliability of learning . It is concluded that successful management practice develops through experimentation in markets and that the best management education has been a varied career in many lines of business and in several companies.

Suggested Citation

  • Eliasson, Gunnar, 2004. "Managament in a New and Experimentally Organized Economy," Ratio Working Papers 51, The Ratio Institute.
  • Handle: RePEc:hhs:ratioi:0051

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    References listed on IDEAS

    1. Gunnar Eliasson & Asa Eliasson, 1996. "The biotechnological competence bloc," Revue d'Économie Industrielle, Programme National Persée, vol. 78(1), pages 7-26.
    2. Robert J. Gordon, 2000. "Does the "New Economy" Measure Up to the Great Inventions of the Past?," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 49-74, Fall.
    3. Eliasson, Gunnar, 1984. "Micro heterogeneity of firms and the stability of industrial growth," Journal of Economic Behavior & Organization, Elsevier, vol. 5(3-4), pages 249-274.
    4. Robert J. Gordon, 2000. "Interpreting the "One Big Wave" in U.S. Long-Term Productivity Growth," NBER Working Papers 7752, National Bureau of Economic Research, Inc.
    5. Eliasson, Gunnar, 1977. "Competition and Market Processes in a Simulation Model of the Swedish Economy," American Economic Review, American Economic Association, vol. 67(1), pages 277-281, February.
    6. Dale W. Jorgenson, 2001. "Information Technology and the U.S. Economy," American Economic Review, American Economic Association, vol. 91(1), pages 1-32, March.
    7. Andrew Atkeson & Patrick J. Kehoe, 2002. "The transition to a new economy after the Second Industrial Revolution," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
    8. Eliasson, Gunnar, 1990. "The firm as a competent team," Journal of Economic Behavior & Organization, Elsevier, vol. 13(3), pages 275-298, June.
    9. Eliasson, Gunnar & Johansson, Dan & Taymaz, Erol, 2005. "Firm Tunrover and the Rate of Macroeconomic Growth - Simulating the Macroeconomic Effects of Schumpeterian Creative Destruction," Ratio Working Papers 66, The Ratio Institute.
    10. Eliasson, Gunnar, 1991. "Modeling the experimentally organized economy : Complex dynamics in an empirical micro-macro model of endogenous economic growth," Journal of Economic Behavior & Organization, Elsevier, vol. 16(1-2), pages 153-182, July.
    11. Eliasson, Gunnar, 1988. "The Firm as a Competent Team," Working Paper Series 207, Research Institute of Industrial Economics, revised Feb 1990.
    12. Anonymous, 1991. "Research Reports And Updates," Journal of Food Distribution Research, Food Distribution Research Society, vol. 22(1), February.
    13. Abramovitz,Moses, 1989. "Thinking about Growth," Cambridge Books, Cambridge University Press, number 9780521333962, March.
    14. Dale W. Jorgenson, 2001. "Information Technology and the U. S. Economy," Harvard Institute of Economic Research Working Papers 1911, Harvard - Institute of Economic Research.
    15. Ballot, Gérard & Taymaz, Erol, 1993. "Firm-Sponsored Training, Technical Progress and Aggregate Performance in a Micro-Macro Model," Working Paper Series 402, Research Institute of Industrial Economics.
    16. Carlsson, Bo A W, 1983. "Industrial Subsidies in Sweden: Macro-Economic Effects and an International Comparison," Journal of Industrial Economics, Wiley Blackwell, vol. 32(1), pages 1-23, September.
    17. Ballot, Gerard & Fakhfakh, Fathi & Taymaz, Erol, 2001. "Firms' human capital, R&D and performance: a study on French and Swedish firms," Labour Economics, Elsevier, vol. 8(4), pages 443-462, September.
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    Cited by:

    1. Schulze-Cleven, Tobias, 2006. "The Politics of an Experimental Society: Creating Labor Market Flexibility in Europe," Institute for Research on Labor and Employment, Working Paper Series qt92x040tt, Institute of Industrial Relations, UC Berkeley.

    More about this item


    Competence bloc theory; Experimentally Organized Economy (EOE); Management theory; WAD theory; Firm Dynamics; Learning;

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D59 - Microeconomics - - General Equilibrium and Disequilibrium - - - Other
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other

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