Sök

Working Paper No. 47. Ignorant Actors in the Resource Rich World of the Knowledge Based Economy – On Rational Management in an Experimentally Organized Economy (EOE)

PublikationWorking paper
Endogen tillväxt, Experimentell ekonomi, Företagandets villkor, Gunnar Eliasson, Kompetensblock, Management Teori
Working paper No. 47
Ladda ner

Sammanfattning

The internal dynamics of the Experimentally Organized Economy (EOE) force actors to constantly innovate to survive competition from all other actors in the same situation, or from new actors entering the market. Since ignorance of circumstances that may be critical for survival characterize the situation of each actor, business mistakes abound. With tacit knowledge distributed over hierarchies and markets analytical methods of management not only feed management with the wrong information but also mislead management, and especially so when something unusual occurs. The change from a seemingly orderly and plannable market environment to an unpredictable, faster and differently organized New economy over the last few decades has made this dynamic an acute management problem. Advance in economic and management theory to help policy makers and management cope is lagging economic development . The managers of the new, distributed (over the market) production organizations have little to learn from the experience of their predecessors in monolithic hierarchies. Hence, the rate of business mistakes has escalated, jeopardizing the life even of the big companies with ample resources to finance a come back. The business manager in the new economy is being subjected to a genuine Darwinian learning experience in the market. Access to competence blocs of organized tacit knowledge distributed over markets, however, minimizes the economic consequences for the firm and for the economy at large of business mistakes, notably the risk of losing the “winners”. Since creating and identifying winners and carrying them on to industrial scale production is the single most important growth promoting factor, a broad based competence to choose the appropriate management method for the occasion is also the important growth promoting factor. For the policy maker this means helping to organize vertically complete and horizontally varied competence blocs of actors with tacit competencies.

Eliasson, G. (2004). Ignorant Actors in the Resource Rich World of the Knowledge Based Economy – On Rational Management in an Experimentally Organized Economy (EOE). Ratio Working Paper No. 47.

Baserat på innehåll

Working Paper No. 119. Advanced Purchasing, Spillovers, Innovative Pricing and Serendipitous Discovery
Working paperPublikation
Eliasson, G.
Publiceringsår

2008

Sammanfattning

Advanced products such as aircraft distinguish themselves by a number of characteristics. Products are complicated and produced under very complicated circumstances, but also have a very long life. The purchase price, therefore, is a small part of total user cost of the product. Product value, hence, increases the more of cost efficient maintenance that has been built into the product and the easier it is to service and modernize. Advanced products also distinguish themselves by featuring the additional collective characteristic of a “cloud of technology spillovers” available to external users in proportion to their competence to commercialize them. While the value of that cloud to society may be greater than that of the product itself the value to the user may be much smaller. The producer, therefore, faces a tricky pricing problem and the value he can capture depends on his ability to charge for the dual product. I discuss joint production of products with rich spillovers in the context of joint customership, i.e. public purchasing of both products and the collective value generated by spillovers. I demonstrate that a win-win situation might exist between the two that improves with the commercial ability of the local economy to capture the value of the spillovers. Industrial participation programs can be made part of a sale to support the receiver competence of local producers to capture the spillover rents. Part of marketing the product, therefore, involves the ability to present a credible case for the economic value to society of the spillovers and to design a method of charging for them (Innovative pricing). A well designed, mutually beneficial contract should make both parties to the trade winners. This latter form of innovative pricing should be particularly attractive for developing countries. The theoretical argument is illustrated with the case of downstream industrial business formation around Swedish Aircraft industry.

Working Paper No. 119. Advanced Purchasing, Spillovers, Innovative Pricing and Serendipitous Discovery
Working paperPublikation
Eliasson, G.
Publiceringsår

2008

Sammanfattning

Advanced products such as aircraft distinguish themselves by a number of characteristics. Products are complicated and produced under very complicated circumstances, but also have a very long life. The purchase price, therefore, is a small part of total user cost of the product. Product value, hence, increases the more of cost efficient maintenance that has been built into the product and the easier it is to service and modernize. Advanced products also distinguish themselves by featuring the additional collective characteristic of a “cloud of technology spillovers” available to external users in proportion to their competence to commercialize them. While the value of that cloud to society may be greater than that of the product itself the value to the user may be much smaller. The producer, therefore, faces a tricky pricing problem and the value he can capture depends on his ability to charge for the dual product. I discuss joint production of products with rich spillovers in the context of joint customership, i.e. public purchasing of both products and the collective value generated by spillovers. I demonstrate that a win-win situation might exist between the two that improves with the commercial ability of the local economy to capture the value of the spillovers. Industrial participation programs can be made part of a sale to support the receiver competence of local producers to capture the spillover rents. Part of marketing the product, therefore, involves the ability to present a credible case for the economic value to society of the spillovers and to design a method of charging for them (Innovative pricing). A well designed, mutually beneficial contract should make both parties to the trade winners. This latter form of innovative pricing should be particularly attractive for developing countries. The theoretical argument is illustrated with the case of downstream industrial business formation around Swedish Aircraft industry.

Working Paper No. 51. Managament in a New and Experimentally Organized Economy
Working paperPublikation
Eliasson, G.
Publiceringsår

2004

Publicerat i

Ratio Working Paper

Sammanfattning

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.

Visa fler

Ratio är ett fristående forskningsinstitut som forskar om hur företagandets villkor kan utvecklas och förbättras.

Sveavägen 59 4trp

Box 3203

103 64 Stockholm

Postgiro: 382621-1

|

Bankgiro: 512-6578