Template-type: ReDIF-Paper 1.0
Author-Name: Kaplinsky, Raphael
Author-Workplace-Name: Institute for Development Studies, University of Sussex
Title: The Implications of New Organizational Techniques for Developing Countries
Abstract: The paper examines the nature of the changes occurring in industrial organisation
	 in the 1990s and the experience of developing countries (LDCs) in adopting the
	 emerging form of organisation or 'mass customisation'. These changes include a
	 drive towards product heterogeneity and innovation, and enhanced levels of product
	 quality without sacrificing price competitiveness; the use of flexible machinery,
	 often involving electronics-based automation technologies; the introduction of new
	 forms of work organisation involving teamwork, the multi-directional flow of
	 information, and delaying of managerial hierarchies; the search for firm economies
	 of scope; and the pursuit of 'systemic optimisation' in efficiency, involving
	 closer horizontal and vertical ties and collaboration between firms. It finds that
	 only a few leading firms in LDCs have been successful to any degree in adopting the
	 new form of industrial organisation; most firms continue to produce under
	 traditional forms of industrial organisation. The study accounts for these results
	 by noting the lack of necessary educational and training levels (although
	 significant advances could be achieved even with existing levels), poor supplier
	 capability and physical infrastructure, and lack of managerial commitment to change
	 due to family ownership and outdated management training. The paper recommends
	 government intervention in the supply and demand of the new industrial organisation
	 through awareness and pilot schemes, visits to successful firms, financing,
	 introduction of relevant educational and training programmes and the promotion of
	 appropriate consulting services. Governments should also provide a stable
	 macro-economic environment for firms to adopt 'mass customisation' and should
	 operate at both the national and the local level.
Keywords: Industrial organization, developing countries
Series: Discussion Paper
Creation-Date: 1995
Number: 1995-14
File-URL: https://www.merit.unu.edu/publications/discussion-papers/9514.pdf
File-Format: application/pdf
File-Size: 443 Kb
Handle: RePEc:unm:unuint:199514