Technological Revolutions and the Evolution of Industrial Structures: Assessing the Impact of New Technologies Upon the Size and Boundaries of Firms

49 Pages Posted: 30 Jan 2013

See all articles by Giovanni Dosi

Giovanni Dosi

Scuola Superiore Sant'Anna di Pisa - Laboratory of Economics and Management (LEM)

Alfonso Gambardella

Bocconi University - Department of Management and Technology

Marco Grazzi

Universita' Cattolica del Sacro Cuore

Luigi Orsenigo

Bocconi University - Department of Economics

Abstract

In this work we discuss the impact of the new ICT techno-economic paradigm upon the vertical and horizontal boundaries of the firm and ask whether the change in the sources of competitive advantage has resulted in changes in the size of distribution of firms and also in the degree of concentration of industries. Drawing both on firm-level and national statistical data we assess the evolution of the overall balances between the activities which are integrated within organizations and those which occur through market interactions.

While the new paradigm entails revolutionary changes in the domain of technology, the modification in industrial structures has been somewhat more incremental. Certainly, the vertical and horizontal boundaries of firms have changed and together one is observing a turnover in the club of biggest world firms, accounting also for a shift in the relative importance of industrial sectors. Nonetheless, we do not observe any abrupt fading away of the Chandlerian multidivisional corporation in favour of smaller less-integrated firms.

Comments on this paper can be found at: http://ssrn.com/abstract=2209152 http://ssrn.com/abstract=2209176

Suggested Citation

Dosi, Giovanni and Gambardella, Alfonso and Grazzi, Marco and Orsenigo, Luigi, Technological Revolutions and the Evolution of Industrial Structures: Assessing the Impact of New Technologies Upon the Size and Boundaries of Firms. Capitalism and Society, Vol. 3, Issue 1, Article 6, 2008. Available at SSRN: https://ssrn.com/abstract=2209120

Giovanni Dosi (Contact Author)

Scuola Superiore Sant'Anna di Pisa - Laboratory of Economics and Management (LEM) ( email )

Piazza Martiri della Liberta, 33
Pisa, I-56127
Italy

HOME PAGE: www.lem.sssup.it

Alfonso Gambardella

Bocconi University - Department of Management and Technology ( email )

Via Roentgen 1
Milan, MI 20136
Italy

Marco Grazzi

Universita' Cattolica del Sacro Cuore ( email )

1 Largo A. Gemelli
Milano (Milan), MI Milano 20123
Italy

Luigi Orsenigo

Bocconi University - Department of Economics ( email )

Via Gobbi 5
Milan, 20136
Italy

Register to save articles to
your library

Register

Paper statistics

Downloads
148
Abstract Views
891
rank
202,297
PlumX Metrics