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Article
Publication date: 1 July 1998

Tatsuo Kinugasa

This paper provides an empirical test of the available evidence concerning firms’ productivity structure and the Schumpeterian hypothesis using the Japanese trunk route airlines…

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Abstract

This paper provides an empirical test of the available evidence concerning firms’ productivity structure and the Schumpeterian hypothesis using the Japanese trunk route airlines during the period 1977‐1993. Empirical tests of this hypothesis have traditionally examined the relationship between some measure of innovative activity and firm size. Former studies have employed the growth rate of productivity as a measure of innovative activity in empirical tests. However, the innovative activity should be measured as the rate of technical change using some innovative inputs and outputs. Since the total factor productivity (TFP) can be decomposed into the technical change and the scale economies terms, this study demonstrates the shift in the cost function associated with technical change, and the change of economies of scale. In this study, the technical change and the scale economies are directly measured by using trans‐log type function. Lastly, the Schumpeterian hypothesis is tested by the technical change. From the empirical results, the Schumpeterian hypothesis is rejected.

Details

International Journal of Social Economics, vol. 25 no. 6/7/8
Type: Research Article
ISSN: 0306-8293

Keywords

Book part
Publication date: 31 October 2005

Arnold Heertje

This chapter deals with aspects of technical change and entrepreneurship which have dominated the economics literature. Since we shall confine our attention to the economic…

Abstract

This chapter deals with aspects of technical change and entrepreneurship which have dominated the economics literature. Since we shall confine our attention to the economic aspects of technical change, our approach is one-sided. This is reinforced by the fact that we discuss only a part of the very large body of literature. The tension between wants and the means to satisfy these is directly influenced by technical change, both from a qualitative and a quantitative point of view. This relationship between scarcity and technical change has been studied in detail since the 1970s, although elements have always been part of economic debate (Heertje, 1977).

Details

The Emergence of Entrepreneurial Economics
Type: Book
ISBN: 978-1-84950-366-2

Article
Publication date: 26 October 2010

Lakshmi Kumar, D. Malathy and L.S. Ganesh

The purpose of this paper is to understand the influence of technology change in the banking sector by employing data envelopment analysis (DEA) and also to determine the change

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Abstract

Purpose

The purpose of this paper is to understand the influence of technology change in the banking sector by employing data envelopment analysis (DEA) and also to determine the change in total factor productivity (TFP) and its components, namely technical change and technical efficiency change.

Design/methodology/approach

The DEA method has been used to assess the efficiency of the entire banking sector and the bank groups. The purpose has been to investigate TFP change and its components' (obtained using Malmquist index) influence on the growth in the banking sector as well as in the four bank groups. In doing so, for each bank group the levels of technical efficiency, technical efficiency change, efficiency change and TFP change have been estimated. Further investigation has been done to determine if significant differences in these exist between the different bank groups in terms of size, time period and ownership. The determinants of productivity have been assessed.

Findings

The TFP growth over the entire period (1995‐2006) was driven by technical change as compared to efficiency change, showing that technology and innovation had a greater impact than efficiency change, or the catch‐up effect. The fixed effects estimates of the determinants of TFP change and its components show that size, ownership and time period exert significant effect on technical change.

Practical implications

The results of the analysis presented in this paper suggest that policies that result in efficiency change are likely to have little impact on the future prospects of the banking sector relative to policies that foster the adoption of the latest technologies. This has exactly been the focus of Reserve Bank of India and though some banks may consider it as an imposition of technology, the result of this requirement appears to be positive as is apparent from this paper's analysis.

Originality/value

The value of this paper comes from the empirical testing that in the Indian banking sector growth in the more recent period came from technology change or frontier shifts as compared to efficiency change. Also, growth is larger due to frontier shifts than due to efficiency change. This endorses Lucas' findings regarding the focus on the positive impacts of deregulation and competition in the Indian banking sector.

Details

Journal of Advances in Management Research, vol. 7 no. 2
Type: Research Article
ISSN: 0972-7981

Keywords

Article
Publication date: 22 November 2011

Supannika Wattana and Deepak Sharma

In the early 1990s, the Thai government initiated a process of reform of the electricity industry with the argument that such reform would improve the performance of the industry…

Abstract

Purpose

In the early 1990s, the Thai government initiated a process of reform of the electricity industry with the argument that such reform would improve the performance of the industry and contribute to enhancing the overall economic prosperity. The purpose of this paper is to examine the veracity of this argument by analysing both the technical and environmental performance of the Thai electricity industry.

Design/methodology/approach

A data envelopment analysis‐based methodology is employed in this study to measure the productivity of the Thai electricity industry, for the period 1980‐2006. This method enables the decomposition of productivity changes into technical and efficiency changes, and hence enables one to determine if changes in productivity are due to electricity reform (efficiency gains) or due to autonomous technological improvements.

Findings

The study reveals that the increase in the productivity of the Thai electricity industry over the period 1980‐2006 was mainly driven by technological improvements and that industry reform has had insignificant impact on productivity. Further, the impacts of electricity reform on the environment appear to be relatively modest – this too was driven by government regulation that supports the use of less environmentally detrimental fuels for electricity generation by the private producers, rather than electricity reform.

Originality/value

The analysis in this paper contributes to the literature on productivity and efficiency, by applying the DEA method to a time series data for a single industry. Additionally, the analysis of environmental performance of the Thai electricity industry – to the best of knowledge of the authors – is the first of its kind for the Thai electricity industry.

Details

International Journal of Energy Sector Management, vol. 5 no. 4
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 1 April 2006

Surender Kumar

To measure total factor productivity (TFP) growth in industrial manufacturing for 15 major Indian states for the period 1982‐1983 to 2000‐2001.

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Abstract

Purpose

To measure total factor productivity (TFP) growth in industrial manufacturing for 15 major Indian states for the period 1982‐1983 to 2000‐2001.

Design/methodology/approach

Uses non‐parametric linear programming methods; TFP growth is decomposed into efficiency and technological changes and also measures for the bias in technical change. The resulting information is used to examine whether the post‐reform period shows any improvement in productivity and efficiency in comparison with the pre‐reform period.

Findings

Findings of the present exercise indicate the improvement in TFP. The recent change in TFP is governed by the technical progress in contrast with similar gain caused by the improvement in technical efficiency in the pre‐reform regime. The technological progress in state manufacturing exhibited a capital‐using bias during the study period. Regional differences in TFP persist, although the magnitude of variation has declined in the post‐reform period. Moreover, it is also found that there is a tendency for convergence in terms of TFP growth rate among Indian states during the post‐reform years and only the states that were technically efficient at the beginning of the reforms remain innovative.

Originality/value

Decomposing state level data on manufacturing into technical change and efficiency change helps in identifying the directions biases in favour of labour or capital. Also, this analysis demonstrates the richness of linear programming technique that allows for an investigation of important research questions on the underlying processes that influence TFP growth.

Details

International Journal of Productivity and Performance Management, vol. 55 no. 3/4
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 29 May 2018

Sepehr Ghazinoory, Ammar Ali Ali, AliReza Hassanzadeh and Mehdi Majidpour

Because of importance of technological learning for less developed countries, the notion has received increasing attention of scholars. The purpose of this paper is to investigate…

Abstract

Purpose

Because of importance of technological learning for less developed countries, the notion has received increasing attention of scholars. The purpose of this paper is to investigate technological learning systematically by assessing the effect of technology transfer actors on technological learning in less developed countries context.

Design/methodology/approach

The paper presents assessment model by adopting technological learning concept based on technology absorption and incremental innovation at firm level and identifying key roles of technology transfer actors (State – Scientific and technological infrastructure – Industry) that affect technological learning. The paper follows survey as research methodology. Thus, a questionnaire was addressed to 33 Syrian textile factories to examine the assessment model. Simple linear, multiple linear and ordinal regression analyses are preformed to examine relationships of model components.

Findings

The regression models show notable ability of technology transfer actors to explain technological behavior of firms to accumulate operative capability and consequently to generate passive incremental innovation. The findings indicate passive technical change system of Syrian textile industry. Therefore, goal-oriented evaluation of actual technology policy is preliminary step for achieving improvements, as well as activating scientific and technological infrastructure role by enabling strong relationships with industry and supporting interactions of domestic firms of textile industry and with foreign players.

Originality/value

The paper enriches technological learning literature by proposing systematic approach that sets the nature of technical change process of less developed countries in core of analysis. Moreover, it provides a guide for technological learning practices at firm level and for policymakers based on assessing actual status of Syrian textile industry.

Details

Journal of Science and Technology Policy Management, vol. 10 no. 1
Type: Research Article
ISSN: 2053-4620

Keywords

Book part
Publication date: 7 February 2024

Mark Govers, Rachel Gifford, Daan Westra and Ingrid Mur-Veeman

Organizational change is a key mechanism to ensure the sustainability of healthcare systems. However, healthcare organizations are persistently difficult to change, and literature…

Abstract

Organizational change is a key mechanism to ensure the sustainability of healthcare systems. However, healthcare organizations are persistently difficult to change, and literature is riddled with examples of failed change endeavors. In this chapter, we attempt to unravel the underlying causes for failed organizational change. We distinguish three types of change with different levels of depth that require different change approaches. Transformations are the deepest forms of change where beliefs and principles need to be modified to successfully influence routines. Renewals are deep forms of change where principles need to be modified to successfully influence routines. Improvements are shallow forms of change where only modifications at the level of routines are needed. Using deoxyribonucleic acid (DNA) as our metaphor, we propose a theory of “organizational DNA” to understand organizations and these three types of organizational changes. We posit that organizations are made up of a double helix consisting of a so-called “social string,” which contains the “soft” interaction or communication among the organization's members, and a so-called “technical string,” which contains “hard” organizational aspects such as structure and technology. Ladders of organizational nucleotides (i.e., Routines, Principles, and Beliefs) connect this double helix in various combinations. Together, the double helix and accompanying nucleotides make up the DNA of an organization. Without knowledge of the architecture of organizational DNA and whether a change addresses beliefs, principles, and/or routines, we believe that organizational change is constrained and based on luck rather than change management expertise. Following this metaphor, we show that organizational change fails when it attempts to change one part of the DNA (e.g., routines) in a way that renders it incompatible with the connecting components (e.g., principles and beliefs). We discuss how the theory can be applied in practice using an exemplar case.

Article
Publication date: 15 June 2012

Sophie Tessier and David Otley

The purpose of this paper is to describe the dynamic development of technical controls in different companies and to interpret the observations using Van de Ven and Poole's…

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Abstract

Purpose

The purpose of this paper is to describe the dynamic development of technical controls in different companies and to interpret the observations using Van de Ven and Poole's typology of change process theories.

Design/methodology/approach

Case study data were obtained through semi‐structured interviews, observation and document analysis in three organisations (Company A, Company B and Company C).

Findings

The paper highlights the life‐cycle development of technical controls, where controls are implemented, improved and eventually removed. It highlights the fact that the progression through the life‐cycle can follow either a dialectical motor of change based on conflict or a teleological motor of change based on consensus.

Research limitations/implications

The findings of the paper enhance the theory of rules developed by March et al., by providing insight into how change actually occurs, i.e. how inertia is broken.

Practical implications

The paper offers practitioners some guidelines for the management of their control systems to help them maintain more effective and efficient control systems.

Originality/value

The paper explains that under a teleological motor of change, inertia is broken more easily than under a dialectical one, because there is less tolerance for control obsolescence, hence improvement and removal of obsolete controls are more likely to occur. This is important for listed organisations having to implement more and more technical controls to comply with laws such as SOX. The paper also suggests that the life‐cycle is not a “motor” of change as suggested by Van de Ven and Poole, because it cannot explain how inertia is broken.

Details

Accounting, Auditing & Accountability Journal, vol. 25 no. 5
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 17 January 2024

Lakshminarayana Kompella

In socio-technical transition theory, resistance by existing technology and regime resistance plays a key role. The resistance is in the form of intentional improvements;…

Abstract

Purpose

In socio-technical transition theory, resistance by existing technology and regime resistance plays a key role. The resistance is in the form of intentional improvements; eventually, the regime destabilizes and adopts the new technology, referred to as the sailing-ship effect. Researchers used a structural view and examined it as a strategic action and its relationship with new technology (competitive/symbiotic) in non-fast-changing sailing systems. This study uses a microlevel view and examines it in a fast-changing where products/services are developed by integrating existing technology with new product innovations; their success depends on addressing technical/market uncertainty. This study examines the sailing-ship effect in a fast-changing system and contributes to the socio-technical transition theory.

Design/methodology/approach

The authors need to examine the phenomena of the sailing-ship effect in its setting, and a case-study method is appropriate. The selected case provided diverse analytic and heuristic perspectives to examine the phenomena; therefore, it was a single case study.

Findings

In an IT scenario, the strategic actions decide and realize agility and competitive advantage by formulating appropriate goals with required budgets and coevolutionary changes to resources at product, process and organizational levels, addressing technical/market uncertainty. Moreover, the agility displayed by strategic actions determines the relationship with new technology, which is interspersed. Finally, it provided insights into struggle, navigation and negotiations, forming strategic actions to display the sailing-ship effect.

Research limitations/implications

The study selected a Banking Financial Services and Insurance product of an IT Services company. As start-ups exhibit inherent (emergent) agility, the authors can examine agility as a combination of emergent and strategic actions by selecting a start-up.

Practical implications

The study highlights the strategic actions specific to an IT services company. It developed its product and services by steering clear from IT innovations such as native cloud and continuous deployment. It improved its products/services with necessary organizational changes and achieved the desired agility and competitive advantage. Therefore, organizations devise appropriate strategic actions to combat the sailing-ship effect apart from setting goals and selecting IT innovations.

Originality/value

The study expands the socio-technical transition theory by selecting a fast-changing system. It provided insights into the relationship between existing and new technology and the strategic actions necessary to manage technical and market uncertainty and achieve the desired competitive advantage, or the sailing-ship effect.

Details

Journal of Science and Technology Policy Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2053-4620

Keywords

Article
Publication date: 16 August 2021

Lakshminarayana Kompella

This paper aims to explain transitions in a socio-technical system characterized by non-economic entities that influence economic activity, i.e. embeddedness and coalitions. The…

Abstract

Purpose

This paper aims to explain transitions in a socio-technical system characterized by non-economic entities that influence economic activity, i.e. embeddedness and coalitions. The selected socio-technical system is an Indian electric network with an interventionist policy. Its embeddedness and coalitions drive the transition. The insights from such analysis expand socio-technical transition theory and provide valuable insights to practitioners in their policymaking.

Design/methodology/approach

The authors need to observe the effects of non-economic institutions in their setting. Moreover, in India, the regional policies influence decision-making; therefore, selected two Indian states. The two Indian states, along with their non-economic entities, provided diverse analytic and heuristic views.

Findings

The findings show that coalitions, with their embeddedness in the absence of any mediating policy systems, act as external pressures and influence innovation and the socio-technical system’s transition trajectory. Their coalitions’ embeddedness follows a shaping, not selection logic. Thereby influence innovations in cumulating as stable designs. Such an approach provides benefits in the short-term but not in the long-term.

Research limitations/implications

The study selected two states and examined two of the four trajectories. By considering other states, the authors can obtain more renewable energy investments and further insights into the transformational trajectory.

Practical implications

The study highlights the coalition dynamics specific to the Indian electric power network and its transition trajectories. The non-economic entities influenced transition trajectories, innovation and policymaking of the socio-technical system.

Originality/value

The study expands the socio-technical transition theory by including embeddedness. The embeddedness brings a shaping logic instead of a selection logic.

Details

International Journal of Energy Sector Management, vol. 16 no. 3
Type: Research Article
ISSN: 1750-6220

Keywords

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