Technology, organisation and productivity performance in services : lessons from Britain and the United States since 1870

This paper documents the comparative productivity performance of the United States and Britain since 1870, showing the importance of developments in services. We identify the transition in market services from customised, low-volume, high-margin business organised on a network basis to standardised, high-volume, low-margin business with hierarchical management, as a key factor. A model of the interaction between technology, organisation and economic performance is then provided, focusing on the transition from networks to hierarchies. Four general lessons are drawn: (1) developments in services must be analysed if the major changes in comparative productivity performance among nations are to be understood fully; (2) different technologies and organisational forms can co-exist efficiently; (3) technological change can cause difficulties of adjustment in technology-using sectors if it is not suited to the social capabilities of the society; (4) reversal of technological trends can lead to reversal of comparative productivity performance

The only way is up: retail format saturation and the demise of the American five and dime store, 1914-1941

We examine a classic ‘wheel of retailing’ episode – the abandonment of the five and dime pricing formula by American variety chains. These switched from a conventional product lifecycle, focusing on cost reduction through standardisation, to a reverse path up the ‘service cost - unit value’ continuum. We show that, rather than reflecting deteriorating managerial acumen, this was a response to the continued imperative for growth following retail format saturation. Firm-specific (rather than format-specific) competitive advantages were too weak for any chain to be confident it could win a within-format price war, making inter-format competition through raising price points more attractive

Elaborations, Revisions, Dissents: Alfred D. Chandler, Jr.’s., The Visible Hand after Twenty Years

Two decades have passed since the publication of 'The Visible Hand,' Alfred D. Chandler, Jr.'s, magisterial account of the rise of the modern business enterprise in the United States. Although Chandler's pathbreaking work has been widely hailed as a landmark in business history, only rarely has anyone considered systematically its influence on the large body of historical scholarship on related topics. This essay is intended to help fill this gap. It is divided into two sections. The first section reviews Chandler's argument, touches on the relationship of Chandler's oeuvre to his personal background, and locates 'The Visible Hand' in the context of American historical writing. The second considers how three groups of historians have responded to Chandler's ideas. These groups consist of champions who creatively elaborated on Chandler's intellectual agenda; critics who probed anomalies between Chandler's argument and their own research; and skeptics who rejected Chandler's analysis outright

Entrepreneurial opportunities, implicit contracts and market making for complex consumer goods

This article extends the theory of entrepreneurial opportunity exploitation, outlining how under certain conditions, opportunity exploitation is dependent on market making innovations. Where adverse selection and moral hazard characterize markets, consumers are likely to withdraw regardless of product quality. In order to overcome consumer resistance, entrepreneurs must signal credible commitments. But because consumers purchase without fully specifying requirements, entrepreneurs' commitments take the partial form of implicit contracts, creating strong mutual commitments to repeated transactions. These commitments enable novel markets to function, but introduce additional costs. This article illustrates the theory with the historic case of Singer in sewing machine

Advertising value equivalence: PR’s orphan metric

The academic approach to measurement and evaluation has long favoured social science methodologies (Broom and Dozier, 1990, Michaelson and Stacks, 2011 and Stacks, 2002), but there has been persistent, widespread practice use of advertising value equivalence (AVE) to express the economic and financial value of public relations activity. This paper investigates the evolution of AVE and discusses whether it arose from clippings agencies, press agentry or other influences on public relations, such as advertising and product promotion

The evolution of public relations measurement and evaluation

The measurement and evaluation of public relations effectiveness has long been a major professional and research issue. In the first half of the 20th century, there were two research methods applied, opinion polls and basic media analysis. These were used to plan campaigns and monitor progress of media relations activities. In the second half of the century, as the practices of public relations expanded, greater emphasis was given to media analysis but the evidence of many practitioner studies was that measurement and evaluation was more discussed than undertaken. In the final 25 years of the century, the academic voice began to become more prominent in the discussion and development of methodologies and in nationally-based education programmes aimed at practitioners. The Internet and social media also began to change practices. There were mixed results from this clamour: more practitioners began to evaluate public relations activity (but many still applied discredited measures) whilst new techniques began to be introduced. Document analysis has prepared a timeline of the development of public relations measurement and evaluation. This paper explores the academic and professional themes that have characterised the development of this important public relations practice over the past 110 years