The performance of economic institutions in a dynamic environment: air transport and telecommunications in Germany and Britain

Darbishire, Owen and Lehrer, Mark (1997) The performance of economic institutions in a dynamic environment: air transport and telecommunications in Germany and Britain. Wissenschaftszentrum Berlin für Sozialforschung.

Abstract

Detailed case study material illustrates why the performance of two British national champions (British Airways and British Telecom respectively) was superior to that of their German counterparts (Lufthansa and Deutsche Telekom): beyond just the effects of privatisation, both the airline and telecommunications industries have been characterised by substantial technological and market change which has altered the parameters of competitive strategy. Under these new dynamic environmental conditions, the British institutional structure has out-performed the “denser” network of relationships within Germany.
This paper seeks to develop a theory of Anglo-Saxon competitive advantage that is not predicated only on the allocative efficiency of free markets, but precisely on the notions of "adaptive efficiency" or "dynamic efficiency" of non-market organisational activities. In other words, the hypothesis is that under specified types of industry conditions, the adaptive or dynamic efficiency of Anglo-Saxon firms may be superior to that of firms in Northern Europe's "industry-coordination" economies.

Item Type: Other Working Paper
Keywords: organizational learning
Subject(s): Organisational behaviour
Centre: Faculty of Organisational Behaviour
Date Deposited: 23 Oct 2012 15:36
Last Modified: 23 Oct 2015 14:07
URI: http://eureka.sbs.ox.ac.uk/id/eprint/4257

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