M. J. Piore and C. F. Sabel. The Second Industrial Divide, New York: Basic Books, 1984.  Home/Search   Document Not in Database   Summary   Related Articles   Check

....business network. Understanding and effectively using electronic integration or responding to its effects on business environments is an increasingly important management activity. As electronic integration strategies are used to redesign the firm s economic production and exchange relationships [19, 37, 40, 57, 74], information technology enables new forms of industrial organization variously called the network organization, the flexible corporation or the virtual firm [24, 26, 46, 62] Firms implementing these structures redesign their business networks to work with a variety of external ....

.... [39] Interdependent Value Chains (Porter, 1985) 58] Transaction Costs theory(Williamson, 1975;1985) 78, 79] Game theory (Bakos, 1987) 5] Social Network theory (Cook et al., 1987) 20] Resource Dependence (Pfeffer Salancik, 1978) 56] Political Economy (Benson, 1975; Piore Sabel, 1984) [13, 57] Theory development and conceptual frameworks identifying electronic integration strategies and their effects on business networks are still in their infancy. 8 We observe that while different theoretical perspectives can be adapted to the study of electronic integration e.g. industrial ....

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M. J. Piore and C. F. Sabel. The Second Industrial Divide, New York: Basic Books, 1984.

....time, setup costs, and the like) while we emphasize changes in the nature of work (multi tasking in particular) and the consequences for labor market activity. See also Appelbaum and Bott (1994) Kremer and Mishkin (1995) Mitchell , Lewin and Lowler III (1990) Levine and Tyson (1990) and Piore and Sabel (1984). 2 The business literature is replete with case studies of work being reorganized, so that people no longer staff functional departments but rather rotate among multiple tasks in customer oriented teams. A few examples are ABB, the producer of heavy capital goods, Bell Atlantic, the IBM ....

Piore, Michael J. and F. Sabel (1984), The Second Industrial Divide, Possibilities for Prosperity, Basic Books, New York.

.... process are examined, for instance, in Carmichael and MacLeod (1993) Holmstrom and Milgrom (1991) Itoh (1992, 1993) Kremer and Mishkin (1995) Milgrom and Shannon (1994) Lindbeck and Snower (1996a,b) Milgrom and Roberts (1990) Mitchell, Lewin and Lowler III (1990) NUTEK (1996) Piore and Sabel (1984), and Yang and Borland (1991) 3 At one extreme, Austria and the Nordic countries commonly have highly centralized wage bargaining processes. In other countries, such as France, Germany, Italy, and the Netherlands, the important wage setting decisions tend to be made at the industry level. ....

Piore, Michael J. and F. Sabel (1984), The Second Industrial Divide, Possibilities for Prosperity, Basic Books, New York.

....a continuous process of innovation. As global competition intensified, industrial economists rediscovered the dynamic potential of Italy s industrial districts (Becattini:1978; Brusco:1982,1986) and the search began for similar innovative clusters elsewhere in Europe and in the developing world (Piore Sabel:1984, Porter: 1990, Schmitz:1993) In parallel, French industrial economists, based on the work of Francois Perroux (1973) attempted to capture the dynamic linkages within an industrial system between clusters of sectors . connected by strong technological and behavioral input output interlinkages ....

.... stress the supporting role that political and social institutions and policies play in the development of partnering activity and in stimulating the transformation of such networks into broader systems of innovation and production at local, regional and national levels (Best: 1990, Brusco:1982 Piore and Sable:1984, Morgan Sayer: 1988, Storper Scott: 1993, Wolfe and Gertler:1998) Since the 1970s, governments in the industrialized countries have come to believe that locational advantages such as these are critical for development. Best: 1990, Camagni: 1986, Piore Sable: 1984, Tolomelli; 1990; ....

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PIORE, M. J. and C. SABLE (1984) The Second Industrial Divide , New York, Basic Books.

....with similar markets and products learn from one another in a network of relationships that are social and cultural as well as economic. In the motion picture industry, for example, every project involves a unique assortment of individuals and small firms that is reconfigured for the next project (Piore Sabel, 1984). Communities facing structural economic change can learn to understand how they can successfully reconfigure their own resources to exploit other opportunities. One widely cited example is the Little Town That Did. The town of Chemainus, B.C. lost 500 jobs at its largest employer (a large ....

Piore, M. & Sabel, C.,1984. The Second Industrial Divide. Basic Books, NY.

....are scattered in separate units, i.e firms, and on the other hand where these small units endeavour to function in intensive cooperation with each other 1 . Long before the term virtual organisation was introduced, the significance of flexible specialisation was brought up for discussion by Piore and Sabel (1984). Further, Johnston and Lawrence (1988) provided evidence from both a large drug company and an Italian industrial district comprising small businesses, and they called the mode of organising value adding partnership , referring to the value chain of production. Johannisson (1989) ended up with ....

....participants results in blurring the boundaries of traditional hierarchies of organisation. The location of the firm in hierarchies is no longer self evident. In another perspective, virtual corporation appears to be the way to fulfill the theorising around the concept flexible specialisation (Piore and Sabel 1984). The findings of the case of a hotel of small firms implicate that the institutionalised definitions of the entrepreneur or the firm have to be reconsidered. Entrepreneurship is likely to generate new kinds of combinations of productive units, in its search for flexibility and efficiency. Do we ....

Piore, M. and Sabel, C. (1984). The Second Industrial Divide. New York: Basic Books.

....both in terms of social welfare and individual pro. ts, between vertical integration and vertical disintegration. Our theory further distinguishes between . rm speci. c and aggregate demand uncertainty. This distinction helps clarify discussions in the literature on the bene. ts of networks. Piore and Sabel s (1984) in#uential work on networks of #exible specialists argues that networks emerge in times of greater economic uncertainty, and in case studies of networks, demand #uctuations . gure prominently. Our results indicate that uncertainty, per se, does not does not lead to networks. Idiosyncratic ....

....subcontracting in Orange County, CA. Lorenz (1989) studies engineering and electronics industries in France. Nishiguchi (1994) discussed in the text studies Britain as well as Japan. We discuss the automobile industry below. Scott (1993) Nishiguchi (1994) and Lorenz (1989) all consider NC tools. Piore and Sabel (1984, p. 217) also discuss NC tools in Japan. 16 See for instance the literature on quality ladders (Grossman and Helpman (1991) 7 3. The Basic Model: Technology and Industrial Structure There are B 2 buyers each of whom demands one (indivisible) unit of a specialized input, that is, an input ....

Piore, Michael J. and Charles F. Sabel. 1984. The Second Industrial Divide. New York: Basic Books.

....interoperation occurs, ii) the range of higher level applications the spanning layer supports, iii) the degree of symmetry in the services of the spanning layer and its interfaces, and in the higher layers up to the application definitions . 1] 3 This work draws on The Second Industrial Divide [9] page 6 Flexible mass production extends cosmetic variation by introducing the potential for change in interdependent design features. Flexible mass production explicitly identifies, a priori, both the set of product design features which is subject to change and the set of values which each ....

M. Piore and C. Sabel, The Second Industrial Divide. Basic Books, USA, 1984.

....upon their initial advantage in Internet content creation. It is the contention of this paper that the San Francisco, New York and Los Angeles regions are best viewed as variations of industrial districts first proposed by Alfred Marshall over 100 years ago. More recently Brusco (1982) Sable and Piore (1984), Harrison (1992) and Saxenian (1994) have helped to develop a modernized version of industrial districts which embodies two distinct ideas. The first is Marshall s original idea of the beneficial effects that agglomeration and external economies bring. The second and newer conception is that ....

Piore, Michael and Charles Sabel. 1984. The Second Industrial Divide. New York: Basic Books.

....industries lean towards more dynamic arrangements. For instance, Piore and Sabel describe US mini steel mills, French and Italian textile firms and Japanese tool makers as examples of flexible industries where variability of demand results in the constant rearrangement of subcontracting patterns [ PS84 ] We wish to analyze the trade off between these arrangements under specific supply chain configurations. 2 Clearly there are many stronger forms of agreements between manufacturers and their suppliers as well. Examples include long term collaborations involving joint development of new ....

M.J. Piore and C.F. Sabel. The Second Industrial Divide. Basic Books, New York, 1984.

....labor market had its benefits but also incurred a set of costs. Because employers made at least an implied commitment to their employees, they could not easily hire from the outside, change the number of hours worked, or alter wages and benefits (Hyman 1988, Kochan, Katz and McKersie 1986, Piore and Sabel 1984). 5 The terms of this trade off have apparently deteriorated for American employers. Starting in the mid 70s, cost became an overriding basis of competition, and internal labor markets thus became a target for cutbacks. Permanent workers with long tenures need to be paid high wages and expensive ....

Piore, Michael J., and Charles F. Sabel. 1984. The Second Industrial Divide. New York, NY: Basic Books.

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