 Organizations can shape technological change through their ability to

affect the supply and demand for a particular technology.

"An organization responsible for a sizable portion of an industry can greatly

influence the technological development of the industry as a whole when it
creates (or refrains from creating) new products." (270) (The Browser Wars)
(Time's coverage of Microsoft's Anti-Trust Case)

 On what basis do organizations make technological choices?

 Little research done on this issue
 Technologies are often seen as independent entities

"A technology might be selected not because of its innate superiority, but
because it meets the needs of the power holders within that organization."
(Ibid.)

 Thus, the organization itself creates the technology or the need for it
 There may be several technologies that could meet a particular need,
but often one in particular is selected because it meets the goals of
those in power. "How the Refrigerator Got Its Hum"
 The above questions will take on greater importance as computers and
automated systems are used more in the production process

Interorganizational Relations and Technological Development

 No business develops ALL of its technologies. It must rely on others for

some of its supplies
 Thus, technological change is not solely the result of independent
organizations, but rather the relationship between many organizations
 In these relationships, technological change can either grow or
stagnate
o The Automobile Industry:

 Industry historically dependent on many sources for

supplies
 Suppliers called OEMs (original equipment manufacturers)
 Traditionally, relationship between OEM and Auto was non-
cooperative
 OEMs were uncertain of how their products were being
used
 This relationship is one reason why American cars fared so
poorly against Japanese
 Japan relies on much more cooperation between auto and
OEM
  American Auto beginning to cooperated more with OEMs

"...The creation of effective working relationships between separate

organizations is an essential element of technological and economic vitality."
(274)

Organizational Size and Technological Innovation

 Technological innovation requires commitment of personnel, money,

and equipment
 As technology grows more complex, it is difficult to imagine that the
"mom and pop" workshops of yesterday could produce the technology
of today.
 Along the above reasoning, it would seem that only large firms would
be the best source for technological output
 It is true that large scale factories will produce most technology BUT:
 Technological innovations will not necessarily emerge from these
sources
 The individual will still be a source of innovation — but will probably
rely on large firms to make her innovation a technical reality

Entrepreneurs and Organizations

 Organizations require the work of many people in order to function

 Organizations rely on three bureaucratic principles:

1. Specialization
2. Formalization (use of rules and regulations)
3. Hierarchical authority

 Although bureaucracies are often viewed as inefficient there is no

reason why they should be
 Bureaucracies have limitations — thrive best with routine, which can
be an enemy to innovation
 Inventors need freedom, not regulation

"There is a basic incompatibility of the new inventor and the large

corporation. Large companies have well-developed planning mechanisms
which need to know at the beginning of a new project how much it will cost,
how long it will take, and above all what it’s going to do. None of these
answers may be apparent to the inventor." (276) Jack Kilby, co-inventor of
the integrated circuit
Questions?

1.  If you directed a research laboratory how would you structure work so as
to allow for creativity, but inhibit the wasting of time on unproductive
tangents?  How would you distinguish between productive and creative ideas
and potentially unproductive ideas?

2.  Many key industries are dominated by a handful of large firms.   This
tendency has become common in light of consolidations and buy outs.  How
might this trend impact technological innovation?  What may its impact be
on overall economic development?

3.  In 1986 Steve Jobs was eased out as the president of Apple?   Why? 
About 2 years ago he was rehired.  Why?

 Back to Chapter 15
 Back to the Role of Experts
 On to the role of Government
 Chapter 3

URL: http://www.umsl.edu/~keelr/280/soctechchange/soctech16.htm
Owner: Robert O. Keel: rok@umsl.edu
Last Updated: Monday, September 25, 2006 13:41