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This book is a collection of essays about the emergence of routines
and, more generally, about getting things organized in firms and in
industries in early stages and in transition. These are subjects of
the greatest interest to students of entrepreneurship and
organizations, as well as to business historians, but the academic
literature is thin. The chronological settings of the book's eleven
substantive chapters are historical, reaching as far back as the
late 1800s right up to the 1990s, but the issues they raise are
evergreen and the historical perspective is exploited to advantage.
The chapters are organized in three broad groups: examining the
emergence of order and routines in initiatives, studying the same
subject in ongoing operations, and a third focusing specifically on
the phenomena of transition. The topics range from the
Book-of-the-Month Club to industrial research at Alcoa, from the
evolution of procurement and coordination to project-based
industries such as bridge- and dam-building and the governance of
defence contracting, and from the development of project
performance appraisal at the World Bank to the way the global
automobile industry collectively redesigned the internal combustion
engine to deal with after the advent of environmental regulation.
The chapters are vivid and thought-provoking in themselves and, for
pedagogical purposes, offer excellent jumping-off points for
discussion of relevant experiences and cognate academic literature.
Case studies that examine how firms coordinate economic activity in
the face of asymmetric information--information not equally
available to all parties--are the focus of this volume.
In an ideal world, the market would be the optimal provider of
coordination, but in the real world of incomplete information, some
activities are better coordinated in other ways. Divided into three
parts, this book addresses coordination within firms, at the
borders of firms, and outside firms, providing a picture of the
overall incidence and logic of economic coordination. The case
studies--drawn from the late nineteenth and early twentieth
century, when the modern business enterprise was evolving, address
such issues as the relationship between coordination mechanisms and
production techniques, the logic of coordination in industrial
districts, and the consequences of regulation for coordination.
Continuing the work on information and organization presented in
the influential "Inside the Business Enterprise," this book
provides material for business historians and economists who want
to study the development of the dissemination of information and
the coordination of economic activity within and between firms.
"Learning by Doing in Markets, Firms, and Countries" draws out the
underlying economics in business history by focusing on learning
processes and the development of competitively valuable
asymmetries. The essays show that organizations, like people, learn
that this process can be organized more or less effectively, which
can have major implications for how competition works.
The first three essays in this volume explore techniques firms have
used to both manage information to create valuable asymmetries and
to otherwise suppress unwelcome competition. The next three focus
on the ways in which firms have built special capabilities over
time, capabilities that have been both sources of competitive
advantage and resistance to new opportunities. The last two extend
the notion of learning from the level of firms to that of nations.
The collection as a whole builds on the previous two volumes to
make the connection between information structure and product
market outcomes in business history.
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