Thinking about industry decline : A qualitative meta-analysis and future research directions
Full text
This is an elec onic ep in o he o iginal a icle.
This ep in may di e om he o iginal in pagina ion and ypog aphic de ail.
Au ho (s):
Ti le:
Yea :
Ve sion:
Please ci e he o iginal e sion:
All ma e ial supplied ia JYX is p o ec ed by copy igh and o he in ellec ual p ope y igh s, and
duplica ion o sale o all o pa o any o he eposi o y collec ions is no pe mi ed, excep ha
ma e ial may be duplica ed by you o you esea ch use o educa ional pu poses in elec onic o
p in o m. You mus ob ain pe mission o any o he use. Elec onic o p in copies may no be
o e ed, whe he o sale o o he wise o anyone who is no an au ho ised use .
Thinking abou indus y decline : A quali a i e me a-analysis and u u e esea ch
di ec ions
Lambe g, Juha-An i; Ojala, Ja i; Pel oniemi, Mi a
Lambe g, J.-A., Ojala, J., & Pel oniemi, M. (2018). Thinking abou indus y decline : A
quali a i e me a-analysis and u u e esea ch di ec ions. Business His o y, 60(2), 127-
156. h ps://doi.o g/10.1080/00076791.2017.1340943
2018
Full Te ms & Condi ions o access and use can be ound a
h ps://www. and online.com/ac ion/jou nalIn o ma ion?jou nalCode= bsh20
Business His o y
ISSN: 0007-6791 (P in ) 1743-7938 (Online) Jou nal homepage: h ps://www. and online.com/loi/ bsh20
Thinking abou indus y decline: A quali a i e
me a-analysis and u u e esea ch di ec ions
Juha-An i Lambe g, Ja i Ojala & Mi a Pel oniemi
To ci e his a icle: Juha-An i Lambe g, Ja i Ojala & Mi a Pel oniemi (2018) Thinking abou
indus y decline: A quali a i e me a-analysis and u u e esea ch di ec ions, Business His o y, 60:2,
127-156, DOI: 10.1080/00076791.2017.1340943
To link o his a icle: h ps://doi.o g/10.1080/00076791.2017.1340943
© 2017 The Au ho (s). Published by In o ma
UK Limi ed, ading as Taylo & F ancis
G oup
Published online: 25 Jun 2017.
Submi you a icle o his jou nal
A icle iews: 629
View C ossma k da a
Ci ing a icles: 2 View ci ing a icles
Business His o y, 2018
VoL. 60, no. 2, 127–156
h ps://doi.o g/10.1080/00076791.2017.1340943
Thinking abou indus y decline: A quali a i e me a-analysis
and u u e esea ch di ec ions
Juha-An i Lambe ga, Ja i Ojalaa and Mi a Pel oniemib
aDepa men o His o y and e hnology, uni e si y o Jy äskylä, Jy äskylä, Finland; bschool o Business and
economics, uni e si y o Jy äskylä, Jy äskylä, Finland
ABSTRACT
We analyze his o ical and longi udinal esea ch ocusing on indus y
decline. Ou analysis sugges s ha he li e a u e’s gene al eliance on a
ew me a- heo e ical a gumen s has impo an consequences o how
decline is amed and explained. We iden i y ou me a- heo e ical
clus e s in he li e a u e: poli ics and ma ke dynamics a e seen as
exogenous ac o s wi h de e minis ic ea u es, whe eas echnology
and managemen capabili ies a e amed as i m-in e nal ailu es wi h
causally ques ionable explana ions o how i m-le el cha ac e is ics
explain indus y-le el decline. We p opose ha i is impo an o
unde s and he limi a ions o dis inc me a- heo e ical a gumen s
o an enhanced heo e ical and me hodological unde s anding o
wha indus y decline is, how i akes place, and why. Acco dingly, his
s udy con ibu es o business his o y esea ch by es uc u ing and
cla i ying la en heo e ical issues, demons a ing he p os and cons
o esea che s’ choices, and o e ing guidelines and p oposi ions o
esea che s in e es ed in indus y decline.
In oduc ion
Business his o y is illed wi h examples o ca as ophic decline p ocesses o indus ies. Such
decline p ocesses ha e occu ed, o example, in he B i ish coal indus y, he De oi au o-
mobile indus y, he Pi sbu gh s eel indus y, and he Sco ish kni wea indus y.1 In e o-
spec , we can iden i y simila causal pa e ns o decline, including sa u a ion o demand,
o eign compe i ion, p oblema ic labo ela ions, and he inabili y o keep up wi h echno-
logical change. Howe e , he his o ical esea ch on he decline o speci ic indus ies is wildly
he e ogeneous in e ms o con en and esul s. Fu he mo e, he esea ch co pus lacks a
cohe en s uc u e and dialogical na u e and consequen ly does no achie e a deg ee o
cla i y ha would be help ul o ei he ui ul empi ical esea ch agendas o c i ical heo e ical
discussion.2 This is he case despi e he ac ha indus y decline and indus ial compe i-
i eness a e majo esea ch opics in business his o y, s a egy, and economic geog aphy.
As Ray S okes and Ral Banken ha e p oposed, he e m ‘indus y’ is p oblema ic as such:
i is a ubiqui ous concep ualiza ion ha ends o change o e ime.3 We ake a a he p ag-
ma ic s ance wi h espec o how o p oceed wi h his concep ual p oblem. We ollow he
© 2017 The Au ho (s). Published by In o ma UK Limi ed, ading as Taylo & F ancis G oup
Th is is an Open Access a icle dis ibu ed unde he e ms o he C ea i e Commons A ibu ion-NonComme cial-NoDe i a i es License
(h p://c ea i ecommons.o g/licenses/by-nc-nd/4.0/), which pe mi s non-comme cial e-use, dis ibu ion, and ep oduc ion in any medium,
p o ided he o iginal wo k is p ope ly ci ed, and is no al e ed, ans o med, o buil upon in any way.
KEYWORDS
indus y decline;
de-indus ializa ion; business
ailu e; business model
e olu ion; indus y li e-cycles
CONTACT Ja i ojala [email p o ec ed]
128 J.-A. LAMBERG ET AL.
concep ualiza ions o ‘indus y’ as cons uc ed in he esea ch ha we analyzed. Thus,
al hough he analyzed indus ies exis in ‘ eal li e’, hey a e also cons uc ions made by he
esea che s. Wha makes ou ask easie is ha in he analyzed decline li e a u e, ‘indus y’
is mos o en ega ded as a loca ion-speci ic en i y: indus y decline means ha mos o he
analyzed s udies examine decline in some egion, coun y o a ea, e en hough a he global
le el, he indus y in ques ion as a whole did no decline. Mo eo e , decline p ocesses a e
o en ela ed bo h o he de elopmen o o he indus ies and he e olu ion o i ms.
The e o e, he e olu ion o indus ies – and he e y de ini ion o he e m ‘indus y’ – is
bound o in e play no only be ween i ms and hei indus ies bu also be ween indus ies
ha a e di e en in ime and space.
Ou mission is bo h o analyze he his o ical li e a u e on indus ial decline and o p opose
ways o mo ing o wa d om he heo e ical and empi ical unde s anding o his phenom-
enon. Ou collec ion o li e a u e e lec s a he e ogeneous adi ion o esea ch on indus y
decline, and i is no a cohe en co pus ha would enable a heo e ically obus unde s and-
ing o he di e en ways o de ining and in e p e ing indus ial decline. The as majo i y o
he li e a u e consis s o s and-alone s udies ha ei he explain a pa icula decline p ocess
o es he powe o a speci ic heo y in p edic ing decline p ocesses. The wo la ge discu si e
clus e s – he i s g oup o s udies ocused on explaining indus ial decline in he UK,4 and
he second g oup o s udies ocused on he decline o he s eel indus y in he Wes e n
wo ld5 – a e so idiog aphic and his o ically and geog aphically o ien ed ha hey ha e no
gene a ed ei he addi ional heo e ical p og ess o la ge-scale empi ical p ojec s.
We do no a gue o a one-size- i s-all app oach o indus ial decline. Ne e heless, we
p opose ha we canno expec heo e ical de elopmen and an imp o ed unde s anding
o his phenomenon wi hou he esolu ion o ce ain p ima y de ini ional and ope a ional
issues. The e o e, we aim o analyze he li e a u e bo h o highligh wha we al eady know
abou indus ial decline and o syn hesize a business his o ical analysis wi h neighbo ing
ields, such as economic geog aphy, s a egic managemen , and mo e gene al (economic)
his o y.
We con ibu e o he li e a u e in wo ways. Fi s , ou analysis cla i ies he his o ical back-
g ound and s uc u e o he decline li e a u e. The obse ed agmen a ion o he li e a u e
is an impo an an eceden o he ield’s unpopula i y: wi hou a s ong heo e ical expla-
na ion o indus ial decline, i is e y di icul o ei he de elop o challenge he cu en
s a e o he esea ch. Second, ou esea ch cla i ies he de ini ion o indus ial decline and
i s an eceden s. We o e a heo e ical amewo k ha aids u u e s udies in aming and
legi imizing empi ical analyses. Al hough case s udies and compa isons om business his-
o y a e highly aluable o analyzing and unde s anding he p ocesses o indus ial decline,
he uses o concep s and heo e ical assump ions mus be anspa en be o e c oss- e ili-
za ion be ween economically o ien ed social sciences is possible in he s udy o indus y
decline and indus y e olu ion mo e gene ally.
Me hod
Because he e a e no hegemonic s udies on indus y decline, we engaged in a comp ehen-
si e and i e a i e p ocess o sea ching and sc eening he li e a u e.6 In addi ion, du ing he
ini ial sea ches in Thomson Reu e s Web o Science and Google Schola , i became e iden
ha he opic is being s udied ac oss he social sciences and humani ies. This means ha
BUSINESS HISTORY 129
(a) a icles a e no he p ima y publica ion o ma (and he e o e, he use o au oma ed
bibliome ic me hods is p ecluded)7 and (b) om he beginning, we we e unlikely o ind
ci a ion pa e ns o keywo d links ha we could use in a mo e o mal analysis. Acco dingly,
ollowing he guidelines o quali a i e me a-analysis,8 we adop ed an induc i e s a egy
based on an in e p e i e eading o he ma e ial.9
Ou analy ical esea ch p ocess is desc ibed in Table 1. We s a ed ou esea ch wi h a
b oad lis o keywo ds and da abases. Mo eo e , we sea ched he iden i ied ci a ion pa -
e ns,10 i.e. books and a icles om he e e ences o he analyzed books and a icles. We
also ex ended ou sea ch o F ench, Ge man, and Scandina ian sou ces, hoping o ind
non-English esea ch s eams in he s udy o indus y decline. Acco dingly, we s a ed ou
esea ch wi h a lis o 327 publica ions, which we educed o 103.
11
Fo ins ance, publica ions
we e excluded i hey ei he ocused on na ional, i m o o ganiza ional decline o used he
e m ‘decline’ in a symbolic o d ama ized sense. Thus, we a e conce ned wi h he li e a u e
ha de ines decline as a phenomenon in a speci ic indus y (including nume ous business
i ms) in one o se e al egions and/o coun ies in e ms o i s ela i e ma ke posi ion.
The e o e, we dis inguish decline om na ional economic g ow h/decline. Mo eo e , decline
is no he same as deindus ializa ion, which ypically cha ac e izes he decline o one o
many indus ies in one egion o na ion and ocuses on economic geog aphy.12 We also
omi ed business ailu es ha concen a e on one i m ha migh ope a e in one o se e al
indus ies.
We acknowledge ha li e a u e sea ch choices a e no sel -e iden and ha , in many
cases, a publica ion may belong o se e al discou ses. Fo example, Da id Kois inen examines
he economic his o y o deindus ializa ion and indus y decline. Likewise, Nicholas C a s
mixes indus y and na ional le els.13 Howe e , o he analy ical p ocess ha we ha e
adop ed, i is necessa y o limi ou sel es o s udies o a speci ic indus y. O e all, i is unlikely
ha we ha e o e looked any impo an pa e ns o discou se om he mos ecen (ou
co pus does no inco po a e much esea ch om he p e-1945 pe iod) li e a u e: single
books o a icles may ha e been missed, bu no o he ex en ha hei inclusion would
d ama ically change ou indings.
In he inal phase o ou da a collec ion and sc eening p ocess, we unde s ood ha unlike
many o he e iew s udies,
14
ou li e a u e e iew lacked a cohe en and uni ying heo e ical
and concep ual co e. Fo ha eason, we we e unable ei he o pinpoin ce ain a p io i
hemes o o s uc u e he li e a u e acco ding o only a ew dimensions. Fo example, we
iden i ied mo e han 30 heo e ical hemes o dis inc heo ies (e.g. he ‘ esou ce-based iew’
o ‘ en -seeking’); many his o ical s udies made no explici men ion o heo ies o me hods;
and some s udies we e based on heo ies ha ope a e on a di e en analy ical le el om
he empi ical con ex . Fo example, many s udies o B i ish pos -wa indus ial decline explain
decline ei he as a unc ion o en ep eneu ial ailu e15 o as a symp om o mac o-economic
dynamics,16 al hough commen e s17 ha e long p oposed ha simpli ica ions o decline, on
he one hand, and he causes iden i ied (e.g. Fo dism e sus lexible specializa ion), on he
o he hand, ha e li le o do wi h he empi ical e idence p o ided.
Following quali a i e esea ch o ex s, we analyzed he iden i ied publica ions in wo
phases. Du ing he i s ound o eading, we ma ked each publica ion acco ding o hei
heo ies, me hods, esea ch objec s, geog aphical ocus, ime pe iods, and o he a ibu es
ha would iden i y each ex simul aneously as an en i y and as pa o a la ge esea ch
clus e . A e ma king and c ea ing a da abase, we used di e en il e combina ions o ind
130 J.-A. LAMBERG ET AL.
Table 1.Desc ip ion o he analy ical p ocess.
S ep Ac ion desc ip ion A ena Sea ch and limi pa ame e s Ou come
s ep 1: Keywo d sea ch ini ial sea ch o esea ch ha
po en ially ocuses on indus y
decline. Bibliog aphical in o ma ion
s o ed in e Wo ks. i e a i e eading
o i les and keywo ds o he
b oadening o he keywo d lis
We used a hos o elec onic da abases
and sea ch engines, including Js o ,
Lib is, he Lib a y o Cong ess, he
B i ish Lib a y, he Lse Lib a y, Google
schola , Web o science, and scopus
declin, ailu e, collaps, o deindus iali,
niede gang, all AnD indus , o
o ganiza , AnD economics, sociology,
managemen o his o y
327 publica ions: 194 books and 133
a icles
s ep 2: ini ial sc eening eading abs ac s and publica ion i les e Wo ks omission o publica ions ha did no
ocus di ec ly on decline
244 publica ions: 118 books and 126
a icles.
s ep 3: sc eening
publica ions
Mo e in ensi e eading o abs ac s and
en i e publica ions by wo membe s
o he esea ch g oup. Consensus
decision abou he publica ions ha
we e omi ed a his s age and hose
ha we e co e a icles and books o
e ain in he co pus
e Wo ks and Web o science o he
analysis o ci a ion pa e ns
We omi ed publica ions ha ocused
on i ms and o ganiza ions and hose
ha did no ocus on decline.
indus y and indus ial clus e
s abilized as he main uni o analysis.
Addi ionally, some publica ions we e
omi ed because o hei ques iona-
ble scien i ic alue (i.e. p oblema ic
con en and/o publica ion ou le )
46 publica ions: 32 books and 12
a icles
s ep 4: Collec ing ull
ex s
Collec ion o books and a icles.
Digi aliza ion i necessa y (by aking
digi al pho os)
elec onic da abases (especially eb a y,
Js o , eBsCo, and P oQues ) and
London-a ea lib a ies (especially Lse
and he B i ish Lib a y)
omission o a ew mo e a icles and
books ha we e ei he no ound o
no ele an
41 publica ions: 30 books and 11
a icles
s ep 5: Focused sea ch e-sea ch o publica ions based on he
eading o he ull ex s al eady ound
and hei lis s o e e ences
see s ep 1 We used he o iginal keywo ds and
conduc ed sea ches on ce ain
indus ies and au ho s
103 publica ions: 46 books, 25 jou nal
a icles, and 31 chap e s om edi ed
olumes
s ep 6: in e p e i e
eading and
ca ego iza ion
We ead and analyzed he co pus by
using he ull- ex a icles and books
in addi ion o an excel sp eadshee in
which he publica ions we e lis ed
and a ibu ed wi h keywo ds
he en i e co pus s o ed in a D opbox
olde
Gene a ion o keywo ds ha iden i ied
he ound li e a u e: esea ch pe iod,
geog aphical ocus, indus y,
discipline, name(s) o he used
heo ies, me hod (i a icula ed), e c
see s ep 5
BUSINESS HISTORY 131
pa e ns and clus e s among he publica ions. We iden i ied only h ee clus e s ha could
be cha ac e ized as e ol ing scien i ic discou ses. Fi s , he la ges academic discussion o
indus y decline conce ns he easons o he UK’s loss o i s compe i i e ad an age o
Ge many and he US.18 Al hough he UK discou se p ima ily conce ns adi ional business
lines om he i s indus ializa ion e a (i.e. s eel, co on, and coal),19 he gene al one o he
discou se is he o e a ching ine ia in in e na ional compe i ion in p ac ically all
indus ies.20
The second dis inc i e g oup o publica ions pe ains o he e olu ion o he s eel indus y.
As in he case o he UK discou se, he s eel indus y discou se is phenomenon-d i en, albei
on an in e na ional scale. The co e na a i e conce ns he loss o compe i i eness in he UK
and hen in he US, Ge many, and all adi ional s eel-p oducing coun ies. The s eel indus y
discou se emphasizes he ailed in e en ions o go e nmen s, he poisonous in luence o
labo unions, and en ep eneu ial ailu es.
21
Finally, he discou se o ‘o he s’ includes a a ie y
o s udies om di e en heo e ical and me hodological angles. The s udied indus ies
anged om ishe ies o e ilize s and om machine ools o pulp and pape . The s udies
co e ed a wide geog aphical ange ha encompasses he US, Canada, F ance, Po ugal,
Japan, Tu key, Egyp , Tanzania, he No dic coun ies, and Chile. Some s udies p esen ed da a
co e ing se e al Eu opean coun ies; o he s e en p esen ed global da a.
This he e ogeneous co pus helped us iden i y new app oaches o s udying and unde -
s anding indus y decline. In he nex sec ion, we summa ize and o e a heo e ical in e -
p e a ion o how indus y decline is de ac o de ined and measu ed in he li e a u e. We hen
u n ou a en ion o ou me a- heo e ical explana ions o indus y decline ha we iden-
i ied om he li e a u e.
How he indus y decline li e a u e de ines decline
While coding ou ma e ial, we ound conside able a ie y in ela ion o he dependen a -
iable, i.e. wha is measu ed and explained when esea che s s udy indus y decline. The
ollowing lis cap u es he mos ypical candida es o wha indus y decline is:
• Dec easing p o i s (p ice-cos ma gin) and dec easing ou pu
• Declining sales
• Inabili y o enew/declining p o i s
• Decline ela i e o compe i o s
• Declining in e na ional ma ke sha e
• Indus ial o ganiza ion s uc u e (managemen ’s abili y o c ea e an a chi ec u e capa-
ble o enewal)
• Compe i i e decline, no inno a ions, o ganiza ional ine iciency
• Declining ma ke sha e, declining p o i s
• Declining ma ke sha e, in e io echnology
• Decline as a cogni i e measu e
• O ganiza ional decline, unwillingness o adap mode n p ac ices, indus ial ine iciency
• Declining expo s
• Lowe p oduc i i y o inno a i e ac i i ies (pa en ing) and weake s ock ma ke
pe o mance
• Employmen g ow h a e
132 J.-A. LAMBERG ET AL.
• Dec easing g ow h o esea ch and de elopmen (R&D) in es men , dec easing sha e
o basic esea ch as opposed o applied esea ch and de elopmen , dec easing sha e
o domes ic in en o s compa ed wi h o eign in en o s iling pa en s
• Dec easing capi al in es men s (new plan and equipmen ), declining R&D expendi u e,
declining sha e o domes ic pa en s
F om all o hese de ini ions, we iden i ied i e la ge ca ego ies ha by and la ge co e he
de ini ions p o ided in he examined s udies. The i s ca ego y ea s decline as a downwa d
end in ou pu . This de ini ional ca ego y co e s dec easing sales, smalle quan i ies o uni s
p oduced and o e capaci y (i.e. a disc epancy be ween p oduc ion and sales). Paul A. Ti any,
o example, de ines ‘indus y decline’ in he con ex o he US s eel indus y as he ‘con inuing
de e io a ion o Ame ica’s s eel pe o mance in he in e na ional ma ke .’
22
Ano he example
is Liza Pipe ’s s udy o Canadian ishe ies in which indus y decline is diagnosed acco ding
o dec easing ou pu .23
The second ype o decline de ini ion cen e s on in es men ends as synonyms and/o
measu es o decline: dec easing o ceasing in es men in p oduc ion capaci y. An hony
DiFilippo, o example, uses a mul i ude o indica o s, one o which is dec easing capi al
in es men in plan s and equipmen .24 The hi d ca ego y associa es decline wi h he de e-
io a ion o in es men a es in echnology and inno a ion. Schola s ega d decline in such
in es men as he absence o new p oduc s, low pa en ing a es and dec easing R&D in es -
men a es. Fo example, Ashish A o a e al. diagnose he decline o he Japanese in o ma ion
echnology (IT) indus y based on Japan’s lowe pa en ing a es compa ed wi h hose o
hei US compe i o s.25 DiFilippo hen uses bo h he declining R&D expendi u e and he
declining sha e o pa en s iled by US i ms o signal he decline o he US machine ool
indus y.26
The ou h ca ego y co e s inancial indica o s such as dec easing p o i abili y, poo sol-
ency s a us, poo s ock ma ke pe o mance, dec easing con ibu ions o he na ional
economy, and domes ic p oduce s’ dec easing ma ke sha e. Fo example, Eina Lie uses
dec easing p o i abili y as an indica o o decline in he Eu opean e ilize indus y, and F ed
Manne ing e al. use he d op in ma ke sha e o domes ic p oduce s in he US au omo i e
manu ac u ing indus y o signal indus y decline.27 Finally, a ew s udies measu e indus y
h ough changes in indus y s uc u e, ypically h ough dec easing i m numbe s. Fo exam-
ple, Joonas Jä inen e al. use dec easing i m numbe s as indica o s o global decline in he
pulp and pape indus y.28
The obse ed di e si y in he indica o s o indus ial decline ine i ably esul s in and
e lec s a si ua ion in which empi ical s udies do no explain he same phenomenon. Fo
example, despi e a lack o in es men in capaci y o inno a ion, sales may inc ease. A
dec ease in i m numbe s may indica e he wo king o economies o scale in which a e age
i m size inc eases along wi h p oduc ion and sales. S ock ma ke pe o mance may depend
mo e on a ple ho a o u u e isks han on any obse ed con ac ion in cu en ope a ions.
Finally, hypo he ical decline p ocesses do no co espond wi h any economic measu es o
decline,29 se ing mo e as a na a i e esou ce han as an empi ical cons uc . D.N. McCloskey
p o ides he ollowing explana ion:30
‘Al hough mildly ashionable among his o ians, nei he o hese al e na i es could be conside ed
o ha e been success ul in eplacing he hypo hesis o ailu e, because bo h we e in oduced
in he same nonquan i a i e way as en ep eneu ship i sel . The o m o a gumen adop ed
by bo h sides in he deba e was quali a i e isola ion o one a iable – en ep eneu ship,
BUSINESS HISTORY 133
in e ela edness, slowly g owing demand – was su icien o explain a good pa o he appa -
en lag in echnology.’31
An implici unde s anding o decline as he inabili y o change and enew an in en ional
decision o exi 32 is a common no ion ac oss he sampled li e a u e. Fo example, Mu a
Cizakca a gues ha he Bu sa silk indus y declined in he 16 h and 17 h cen u ies because
p ice ola ili y led o a change in p oduc ion s a egy.33 The US cu nail indus y declined,
acco ding o Amos J. Lo eday, because i ms and hei manage s we e unable o adap o
changing echnology: ‘Failu e o ecognize he need o , and he long- e m p o i abili y o ,
indus ial esea ch was he missing componen in a managemen philosophy ha was o h-
e wise ema kably success ul.’34
This de ac o de ini ion o decline as he opposi e o enewal has an in iguing associa ion
wi h he heo e ical p emises o indus y li e cycle heo y: enewal would equi e he building
o p o ec i e ins i u ional ba ie s, he de elopmen o new echnological inno a ions, o
he c ea ion o new indus ies. In all o he s udies included, a leas one o hese enewal
al e na i es ailed and he en ep eneu s decided o exi . We now sc u inize he easons o
decline iden i ied in ou li e a u e collec ion.
Analysis
The i s ound o ou quali a i e in e p e a i e analysis esul ed in 32 sugges ions as easons
o indus y decline. We agg ega ed hese ca ego ies as ou me a- heo e ical clus e s o
explana ions, which (a) enable us o g oup indi idual s udies acco ding o hei explana o y
logic (e.g. ole o agency and e olu ion) and (b) sugges di ec ions o u u e esea ch. These
me a- heo e ical clus e s a e policy and ins i u ional en i onmen , ma ke dynamics, ech-
nology, and capabili ies.
Policy and he ins i u ional en i onmen a la ge
Ou collec ion o decline li e a u e p ima ily ea s policy decisions and he ins i u ional
en i onmen as exogenous ac o s. Al hough many s udies acknowledge ha i ms and
indus y associa ions a emp o a ec and modi y public policies,35 and ha in many cases
go e nmen is an ac i e playe in he decline p ocess, mos au ho s seem o ea decline
p ocesses acco ding o hei egula o y and ins i u ional en i onmen s.36 This app oach is
an in e es ing choice: mos plu alis heo is s o poli ical decision-making would a gue ha
i ms and indus y associa ions in en ionally compe e o public goods in he ‘poli ical ma ke
place.’37 The s udied collec ion o decline li e a u e iden i ies o he ac o s, such as labo
unions38 and indus ial ac o s in o he coun ies and o he indus ies;39 howe e , he ocal
indus ies a e a ely iewed as ope a ing in he same ne wo k o commi men s.40 In some
cases, i m managemen and o he indus y leade s a e accused o mismanaging hei s ake-
holde ne wo ks ( ypically, labo unions and go e nmen );41 howe e , s udies iewing i ms
and o he o ganiza ions as embedded in he same ins i u ional en i onmen ha a ec s
hei decline p ocess a e ei he a e o non-exis en .
Today’s poli ical economis s assume ha wo ac o s in luence he e olu ion o indus ies
(and hence, he downwa d spi al), hus p o iding he heo e ical backg ound o he ques ion
o he go e nmen ’s ole. Fi s , ep esen a i es o he ield o new poli ical economy (which
is based on his o ical e idence and empi ical da a) assume ha ce ain ins i u ional elemen s
140 J.-A. LAMBERG ET AL.
and Edge on ques ion he e y exis ence o his decline in he UK.121 Lazonick conside s
manage ial ailu e as a key de e minan o he decline o B i ish indus ies. Acco ding o him,
B i ish businessmen ailed ( o e en y) ‘indi idually o collec i ely o ans o m hei indus-
ial en i onmen ’; hey ins ead ‘ ook he condi ions acing hem as gi en’.122 Howe e , as
Roge Lloyd-Jones and My ddin J. Lewis sugges , B i ish indus ial decline canno be
explained by a simila ailu e o enew and ake ad an age o new echnologies in all indus-
ies. They sugges , o example, ha he She ield me al indus y was based on ‘quali y
p oduc ion and lexible echnology’ and hus esembled i s Ame ican analog.123
De ek F. Channon a gues ha B i ish indus ial co po a ions su e ed om manage ial
de iciencies, such as a lack o expe ise in ele an p icing, ine icien p oduc ion, poo indus-
ial ela ions, low capi al in es men , and p e e ences o colonial ma ke s.124 In a simila
ein, Joonas Jä inen e al. ind ha i ms in he global pulp and pape indus y we e locked
in o hei p e iously success ul pa hs and we e unable o adap o a changing en i on-
men .
125
Ba y E.C. Boo hman’s s udy o e s a mo e de ailed explana ion o he lack o adap-
a ion: in he Canadian pulp and pape indus y, co po a e epo ing p ac ices masked i ms’
inancial s a us and esul ed in o e in es men and excess capaci y.126 Such epo ing p ac-
ices hin a une hical beha io . Fu he mo e, bo h Thomas P. Ca ney and Amos J. Lo eday
o e e hical ailu e as he eason o indus y decline: idealis ic leade s o he pas ha e been
eplaced by p o i -mo i a ed oppo unis s.127
In addi ion o a lack o skill and e hics, manage ial ailu e is ied o na ional cul u e. In he
case o he B i ish co on indus y, he decline is explained by he ise o co po a e economies
in Japan and he US, whe e he new co po a e cul u e was be e equipped o ‘c ea e condi-
ions o new p o i able oppo uni ies.’128 Nume ous s udies analyzing B i ish indus ial
decline, whe he du ing he la e nine een h cen u y, he u n o he wen ie h cen u y, o
a e he Second Wo ld Wa , end o emphasize a ce ain, almos cul u ally embedded adi ion
o manage s adhe ing o old me hods and p ac ices.
129
Howe e , cul u ally bound manage ial
ailu e is no solely a B i ish phenomenon. The all o he Japanese IT indus y has also been
explained in cul u al e ms: as so wa e inno a ions ha e become mo e impo an , Japanese
i ms ha e su e ed because he Japanese a e no p one o so wa e inno a ion.130
The capabili ies-based explana ion o indus ial decline ul ima ely lays he blame on
manage s. Manage s lack equi ed skills because o poo educa ion o cul u ally bound
no ms and alues. Could a di e en se o manage s ha e sa ed an indus y in decline?
Acco ding o empi ical esea ch on managemen ’s impac on su i al, we simply do no
know he answe o his ques ion. Thus, and unsu p isingly, he wide capabili y li e a u e
on indus y decline has ound i di icul o de ine and assess he causal ela ionship be ween
manage ial ac i i ies and decline. Robe A. Ankli and E a Somme , o example, claim ha
he decline o he Ame ican s eel indus y was indeed caused by managemen ailu e bu
ha exac ly whe e manage s we e ac i e is a mo e p oblema ic ques ion, because manage s
we e esponsible o daily decisions abou subjec ma e wi h a - eaching consequences.
Ankli and Somme conclude ha Ame ican s eel indus y manage s we e incapable o enew-
ing he business o e u n o i s o me success: ‘Managemen hough ha hey had he
bes indus y in he wo ld – wha wo ked yes e day was hough o wo k jus as well omo -
ow.’131 A simila conclusion is ob ained in se e al s udies analyzing a ious lines o declining
indus ies in B i ain. Howe e , again, a clea causal ela ionship migh be ha d o pinpoin .
Fo example, acco ding o Lo enz, he decline o he B i ish shipbuilding indus y was no
necessa ily caused by a managemen ailu e; i was ins ead caused by he ailu e o build
BUSINESS HISTORY 141
us be ween managemen and ade unions.132 Howe e , his us migh be unde s ood
as an en ep eneu ial unc ion; hus, i i we e neglec ed, he si ua ion could be unde s ood
as a manage ial ailu e in building us wi h unions.
Manage ial ailu e boils down o he human endency o p e e he amilia o e he
un amilia , which in manage ial speak ansla es in o a local sea ch. Cogni i e limi a ions
esul in changes ha su ace as su p ises: he Sco ish kni wea indus y (i.e. kni wea i ms
and hei manage s) did no unde s and ha i had los i s p e ious ad an age,133 and B i ish
pape indus y manage s op imized p oduc ion wi h in o ma ion ha , in e ospec , mo i-
a ed hem o make in e io echnology choices.134 Howe e , he same manage s would be
labeled success ul he oes wi hou he decline, which unde lines no only he endency o
a ibu e ailu e o indi iduals bu also he ac ha an indi idual-le el explana ion is ca e-
go ically w ong when aiming o explain indus y-le el decline p ocesses.135 Acco dingly,
Teece’s p oposal o ha e a ich modula base o capabili ies would be help ul in enewing
indus ies and does no eg ess o indi idual i ms and hei decisions.136
Discussion
The analysis o ou collec ion o indus y decline li e a u e e ealed a agmen ed body o
esea ch. The mo e han 100 publica ions ocus on nume ous indus ies, coun ies, and
egions and use di e en heo ies and me hods. The collec ion does no ha e a dialogical
s uc u e ou side some classic hemes in economic and indus ial his o y (e.g. UK manu ac-
u ing in he wen ie h cen u y and he US s eel indus y). F om his s a ing poin , ou
s udy’s con ibu ions a e as ollows. Fi s , we ede ine indus y decline o cla i y he esea ch
opic in u u e s udies. Second, we gene a e heo e ical p oposi ions based on his o ical
e idence. Thi d, we make some sugges ions abou how o s udy indus y decline and wha
migh a ise as limi a ions in such inqui ies.
A ( e)de ini ion o indus y decline
Ou collec ion o li e a u e e lec s an in e es ing pa adox: only a ew indus ies ha e com-
ple ely disappea ed om indus ial his o y. Con e sely, a la ge US s eel indus y s ill exis s;
ca s a e manu ac u ed in he UK; and No dic pape indus y i ms a e la ge han be o e hei
indus y s a ed o decline. Ou esul s sugges ha he manne in which decline is concep-
ualized may be a key ac o in de e mining he ypes o explana ions ha esea che s ind
and he policy op ions ha decision-make s de i e om hese indings. The e o e, one key
con ibu ion o ou esea ch is ha esea che s s udying indus y decline should be mo e
ca e ul and explici in how hey concep ualize decline and should conside whe he hei
concep ualiza ions ma ch hei implici and explici cause-e ec modeling.
Acco dingly, o cla i y empi ical esea ch and heo y de elopmen , we p opose a e o -
mula ed de ini ion o indus y decline – and in some sense a ede ini ion o indus y.137 We
p opose iewing an indus y om a con igu a ional and iden i y-based pe spec i e. In o he
wo ds, i ms in he declining indus y a e membe s o a popula ion cha ac e ized by simila
business models138 and indus y ecipes. By business model, we mean he p oduc o e ings,
managemen sys em, ne wo k, and alue-c ea ion p ac ices ha (a) ha e a modula s uc u e
and (b) a e his o ically con ingen .139,140,141 By indus y ecipe,142 we mean he collec i e
me hod o cogni i ely ‘making sense’ o he link be ween he business model and he ma ke
142 J.-A. LAMBERG ET AL.
en i onmen .143 Tha said, in a gi en his o ical momen , some i ms may be membe s o a
popula ion o i ms sha ing business model cha ac e is ics and hough s abou indus y
bounda ies, p oduc on ology, and epu a ional anking (i.e. who’s who in he indus y).144,145
This membe ship, howe e , does no mean ha a i m could no ha e/ob ain membe ship
in o he indus ies o ha i s ope a ional and cogni i e cha ac e is ics will emain he same
o e e . This also means ha we ea decline as a collec i e inabili y o unwillingness o
change a dominan indus y ecipe and business model, which is hen e lec ed in measu -
able de e io a ion o economic pe o mance.
Why do indus ies no ans o m?
An ob ious akeaway om ou esea ch sample is ha decline is la gely he opposi e o
enewal. Building on he analysis o ou collec ion o li e a u e, we p opose ways in which
poli ics, ma ke compe i ion, echnology, and capabili ies may ca alyze indus y decline
by p e en ing enewal. These ac o s a ge h ee al e na i e ways o enewing he indus y:
(1) c ea ing ba ie s o en y; (2) eju ena ing he ma u e indus y h ough inno a ion; and
(3) e aming he indus y and i s bounda ies. The indus y li e cycle li e a u e ecognizes
all h ee mechanisms as po en ial s a egies agains declining pe o mance.146 Ou con-
ibu ion is o iden i y he causal links be ween he an eceden s o decline as speci ic o
hese h ee mechanisms o enewal. Table 2 below lis s he po en ial causali ies.
Many o hese obse a ions es a e heo e ical p edic ions om he li e a u e on indus ial
o ganiza ion,147 capabili ies,148 and new poli ical economy.149 Complemen ing exis ing
assump ions, we may iden i y h ee cen al p ocesses ha help explain and p edic he
inabili y o enew. The ollowing lis and Figu e 1 p esen hese h ee p ocesses.
(1) Hind ance: The p ocess s a s om a combina ion o changing echnology and
subsequen ma ke dynamics. Technological change in la es exis ing echnologi-
cal capabili ies and oge he wi h insu icien o ganiza ional capabili ies, hinde s
enewal.
(2) Demo i a ion: Indus y a chi ec u e (i.e. he combina ion o s uc u e and incen-
i es150) demo i a es enewal because ac o s a e embedded in o ganiza ional and
social ne wo ks, making i di icul o expe imen wi h al e na i e s a egies.
(3) Cons ain : Poli ical in e en ions and he ‘web o commi men s’.151
Fo business his o y esea ch, ou heo izing means a shi om s udying he causes and
e ec s o decline owa ds s udying he p ocesses o uneasy enewals and o e all dynamics
d i ing hese p ocesses. Addi ionally, wi h espec o ou causal ma ix (Table 2) he 12
heo e ical no ions o e ine-g ained s a ing poin s o ocus on speci ic heo e ical ques-
ions ins ead o aiming o comp ehensi e explana ions. Fo example, we call o mo e
nuanced esea ch on he ole o poli ics in ca alyzing indus y decline. Al hough cu en
esea ch has mos ly ocused on he ole o go e nmen s in he c ea ion o non-c ea ion o
en y ba ie s, ou p oposi ion is ha go e nmen s’ ole goes much deepe in o inno a ion
p ocesses (including esea ch and educa ion) and how go e nmen s e ame he indus y
and i s bounda ies. Likewise, he ole o echnology de elopmen would equi e ex ensi e
ocused esea ch o e eal he deepe mechanisms d i ing echnological ine ia and hus
p oblems in coping wi h compe i ion. Finally, al hough we ind i di icul o loca e e idence
on in e io managemen and leade ship a he i m le el as causes o indus y-le el decline,
BUSINESS HISTORY 143
Table 2.How decline ca ego ies a ec enewal s a egies.
C ea ing en y ba ie s
Reju ena ing he ma u e indus y h ough
inno a ion Re aming he indus y and i s bounda ies
Poli ics in he sho un, he allowance o ma ke bu e s
(ca els; monopolies) may slow decline p ocesses. in
he long un, an inc easingly weak ma ke posi ion
will e en ually esul in collapse
Poli ical in e en ions a e no a necessa y o su icien
condi ion o he eme gence o new inno a ions.
Howe e , he lack o poli ical suppo may dec ease
indus ial esea ch and hus accele a e decline
p ocesses
Poli ical in e en ions a e no a necessa y o su icien
condi ion o e aming indus y.Howe e , poli ical
in e en ions may ha e a legi imizing e ec 153 on
e amed iden i y, hus accele a ing decline p ocesses
Ma ke dynamics Ma ke compe i ion may impo an ly mo i a e he c ea-
ion o en y ba ie s
A e he beginning o pe cei ed indus y decline,
ma ke compe i ion may mo i a e i ms o make new
p oduc inno a ions
A e he beginning o pe cei ed indus y decline,
ma ke compe i ion may mo i a e i ms and
associa ions o engage in he o ical e aming and
business model inno a ions
echnology A lack o indus ial esea ch and a cumula i e
knowledge gap may mo i a e i ms o seek poli ical
p o ec ion in he o m o en y ba ie s
La ge-scale indus ial esea ch enables he eme gence
o new inno a ions.Likewise, a lack o o insu icien
indus ial esea ch is a su icien condi ion o
indus y decline
echnological capabili ies enable business model
inno a ions and indus y e aming.Likewise,
insu icien echnological capabili ies p e en o
p oblema ize business model inno a ions and
indus y e aming
Capabili ies Me a-le el capabili ies by indus y leade s and poli ical
decision-make s enable changes in he indus y
a chi ec u e.Likewise, a lack o such capabili ies
con ibu es o indus y decline
A la ge se o p e-exis ing capabili ies enables he
eme gence o new inno a ions. Likewise, a lack o
o ganiza ional capabili ies con ibu es o indus y
decline
A la ge se o o ganiza ional capabili ies enables
indus y e aming and he c ea ion o new business
models. Likewise, a lack o o ganiza ional capabili ies
con ibu es o indus y decline
144 J.-A. LAMBERG ET AL.
we p opose s udying he ole o poli ical decision-make s and in luen ial igu es in na ional
inno a ion sys ems as inhibi o s o enewal.152 Fo example, ea lie s udies o indus y e o-
lu ion and inno a ion managemen in Ge many e eal ha speci ic ou comes (ou case
indus y decline o enewal) a e he esul s o con igu a ions o ins i u ions, capabili ies, and
i m-le el adap a ion.
153
The managemen o challenging si ua ions equally equi es o ches-
a ion o ins i u ional amewo ks, enginee ing esea ch and educa ion, and i m-le el
adap abili y. The examples by Mu mann and mo e ecen s udies on nanoeconomics sugges
ha indus y-le el dynamics should be s udied om below. Such esea ch equi es da a o
all i ms in a ce ain popula ion and me hodological ools o cope wi h he eme ging com-
plexi y.154 While such a le el o de ailed analysis is no possible o some cases, i opens
oppo uni ies o business his o ians o s udy indus y decline wi h a le el o accu acy ha
has no been ypically seen in he neighbo ing disciplines in social sciences.
Conclusions
The analysis o indus y decline li e a u e e ealed ou dominan me a- heo e ical expla-
na ions causing indus y decline. The i s is ins i u ional en i onmen , emphasizing he ole
o he go e nmen , labo unions, and in luence o special in e es g oups as he causes o
decline. The second emphasizes ma ke dynamics and in e na ional compe i ion explaining
he decline o indus ies in ce ain geog aphical a eas. This li e a u e indica es ha decline
is caused by cos di e ences in p oduc ion, anspo , ma ke ing, e c. The hi d explana ion
is echnological: alling behind in echnological de elopmen causes indus y decline.
Technological change can e en des oy global indus ies as new p oduc s and se ices c ea e
new indus ies ha displace exis ing ones. The ou h widely no ed cause o decline is
ela ed o capabili ies, which his o ical s udies usually iden i y as en ep eneu ial ailu e and
manage ial de iciencies.
Figu e 1.P ocess amewo k o indus y decline and enewal.
BUSINESS HISTORY 145
Based on he wide body o decline li e a u e, we ede ined indus y decline and made
heo e ical p oposi ions and sugges ions o u he s udies in indus y decline. S okes and
Banken s a e ha business his o ians and social scien is s end o be mo e in e es ed in i ms
han in indus ies.155 The e o e, al hough he in e play be ween i ms and hei indus ies
will be highly aluable when analyzing indus y decline, he in e play be ween indus ies
and go e nmen s and inno a ion sys ems mo e b oadly is equally impo an . Finally, he
p ima y unde lying message o ou analysis and heo e ical wo k is ha ins ead o o cing
a na a i e s uc u e o he s udy o indus y decline, esea che s would bene i om (a)
ocusing on he p ocesses o enewal p oblems ins ead o explaining backwa ds om ou -
comes and (b) using na owe and heo e ically mo e obus s udy se ings.
No es
1. See, o example, Edge on, Science; Supple, B i ish Coal Indus y; Rubens ein, Changing U.S.
Au o Indus y; Hoe , Wol Finally Came; Po ac, Thomas, and Baden-Fulle , ‘Compe i i e G oups’.
2. Edge on, ‘Decline o Declinism’; McCloskey, Economic Ma u i y.
3. S okes and Banken, ‘Cons uc ing an “Indus y”’.
4. Fo example, Elbaum and Lazonick, Decline o B i ish Economy; Mass and Lazonick, ‘B i ish Co on
Indus y’.
5. Fo example, Mény and W igh , Poli ics o S eel.
6. C . Simsek, Fox, and Hea ey, ‘Wha ’s Pas is P ologue,’ ha s a s om S inchcombe’s esea ch
on imp in ing condi ions.
7. Ramos-Rod íguez and Ruíz-Na a o, ‘Changes’.
8. Sch eibe , C ooks, and S e n, ‘Quali a i e Me a-Analysis’.
9. Bu le , ‘Towa ds He meneu ic Me hod’.
10. C. . Simsek, Fox, and Hea ey, ‘Wha ’s Pas is P ologue’.
11. The decline li e a u e used in his a icle is ma ked wi h as e isk (*) in he lis o e e ences.
12. Row ho n and Wells, De-indus ializa ion.
13. Kois inen, ‘Dealing wi h Deindus ializa ion’; Kois inen, Con on ing Decline; C a s, ‘Fo ging
Ahead’; C a s, ‘B i ish Rela i e Economic Decline’.
14. Bozeman, ‘Technology T ans e ’; Ramos‐Rod íguez and Ruíz‐Na a o, ‘Changes’.
15. Wiene , English Cul u e.
16. C a s, ‘Fo ging Ahead’.
17. Boo h, ‘Manu ac u ing Failu e’; Edge on, ‘Decline o Declinism’; McCloskey, Economic Ma u i y.
18. Edge on, ‘Decline o Declinism’.
19. C a s, ‘Fo ging Ahead’.
20. Fo example, Koe ne , S ange Dea h.
21. Fo example, Mény and W igh , ‘Poli ics o S eel; Temin, Rela i e Decline; Ti any, Decline o
Ame ican S eel’.
22. Ti any, Decline o Ame ican S eel, 158.
23. Pipe , ‘Pa asi es’.
24. DiFilippo, ‘Mili a y Spending’.
25. A o a, B ans e e , and D e , ‘Going So ’.
26. DiFilippo, Mili a y Spending.
27. Lie, ‘Ma ke Powe ’; Manne ing e al., ‘B and Loyal y.’ See also Ca alan Vidal, ‘S ag la ion C isis’
and Donelly, Begley, and Collis, ‘Wes Midlands Au omo i e Indus y’.
28. Jä inen e al., ‘Fall and F agmen a ion’.
29. Fo example, Collins and Robbins, B i ish Cul u e.
30. Man e e e al., ‘Na a i e A ibu ions’.
31. McCloskey, Economic Ma u i y, 32.
32. Ha igan, S a egies o Declining Businesses.
33. Cizakca, ‘P ice His o y’.
146 J.-A. LAMBERG ET AL.
34. Lo eday, Rise and Decline, 150.
35. Fo example, Cassing and Hillman, ‘Shi ing Compa a i e Ad an age’; Din en ass, Managing
Indus ial Decline.
36. DiFilippo, Mili a y Spending; Dunne , Decline o B i ish. See also Pa di, ‘Indus ial Policy’ and
Fe ze , ‘Re e sing Gea ’.
37. Fo example, Shepsle, ‘Cong ess’; Keim, ‘Business and Public Policy’.
38. Eisenhamme and Rhodes, ‘Poli ics o Public Sec o ’; Ti any, Decline o Ame ican S eel. See also
Fe ze , ‘Re e sing Gea ’.
39. Bakke , ‘Decline and Fall’; Moen, Decline.
40. A gy es and Liebeskind, ‘Con ac ual Commi men s’; Ba ley, ‘Building’.
41. Ti any, Decline o Ame ican S eel.
42. No h, Ins i u ions; Acemoglu, Johnson, and Robinson, ‘Ins i u ions’; Acemoglu, Johnson, and
Robinson, ‘Re e sal o Fo une’.
43. Dunlea y, Democ acy; Shepsle, ‘Cong ess’.
44. Miz uchi, S uc u e.
45. Acemoglu, Johnson, and Robinson, ‘Ins i u ions’.
46. G ay and Lowe y, ‘In e es G oup Poli ics’; Hadani and Schule , ‘In Sea ch o El Do ado’.
47. DiFilippo, Mili a y Spending.
48. Richa dson and Dudley, ‘S eel Policy’; Womack, Decline o Ame ican.
49. McCloskey, Economic Ma u i y.
50. DiFilippo, Mili a y Spending.
51. Ti any, Decline o Ame ican S eel.
52. Kois inen, ‘Dealing wi h Deindus ializa ion’.
53. Ti any, Decline o Ame ican S eel, 168.
54. Elbaum and Lazonick, ‘Ins i u ional Pe spec i e,’ 2.
55. Wiene , English Cul u e.
56. Lo enz, ‘E olu iona y Explana ion,’ 931.
57. See Edge on, ‘Decline o Declinism’.
58. B own, ‘Collapse,’ 596.
59. Manne ing e al., ‘B and loyal y’.
60. Do mois, ‘F ance’s Expe ience’.
61. Cassing and Hillman, ‘Shi ing Compa a i e Ad an age’.
62. Anand and Singh, ‘Asse Redeploymen ’.
63. DiFilippo, Mili a y Spending.
64. Kois inen, ‘Dealing wi h Deindus ializa ion’.
65. Lo enz, Economic Decline in B i ain.
66. Tenold and No d ik, ‘Coping’.
67. Sjög en, ‘Shipping as Gambling’.
68. Poulsen and So nn-F iese, ‘Down all Delayed’.
69. Ojala and Räihä, ‘Na iga ion Ac s’; Lay on, E olu ion.
70. Fo example, Abe and Gou ish, Japanese Success?
71. Bakke , ‘Decline and Fall,’ 310; Male ba, Semiconduc o Business.
72. Chandle , Scale and Scope; Clu e buck and C aine , Decline and Rise; C a s, ‘Fo ging Ahead’;
C a s, ‘B i ish Rela i e Economic Decline’; Elbaum and Lazonick, Decline o B i ish Economy;
Owen, F om Empi e o Eu ope. Li e a u e e iew in Din en ass, ‘Con e ging Accoun s’ and in
Edge on, Science.
73. Edge on, ‘Decline o Declinism’.
74. Howe, Dundee Tex iles; Lazonick, ‘Compe i ion,’ Lazonick, ‘Indus ial O ganiza ion’.
75. Elbaum, ‘S eel Indus y’; McCloskey, Economic Ma u i y; Owen, F om Empi e o Eu ope.
76. Bu on, Rise and Fall; Lo enz, ‘E olu iona y Explana ion’; Lo enz and Wilkinson, ‘Shipbuilding
Indus y’.
77. Chu ch, Rise and Decline; Dunne , Decline o B i ish; Whisle , B i ish Mo o Indus y.
78. B own, ‘Collapse’.
79. Tomlinson, Mo elli, and W igh , Decline o Ju e.
BUSINESS HISTORY 147
80. Hend y, Inno a ing o Failu e; Kelly, B i ish Compu e Indus y.
81. Din en ass, Managing Indus ial Decline; Supple, B i ish Coal Indus y.
82. e.g. Asian oy p oduc ion in he 1970s and 1980s, B own, ‘Collapse’.
83. E.g. he Ame ican s. B i ish co on indus y, Lazonick, ‘Indus ial O ganiza ion’.
84. McCloskey, Economic Ma u i y, See also Edge on, Science; Edge on, ‘Decline o Declinism’.
85. Dosi, Pa i , and Soe e, Economics o Technical Change; Po e , Compe i i e Ad an age o Na ions.
86. Tomlinson, Mo elli, and W igh , Decline o Ju e.
87. Ullman, Ana omy o Indus ial Decline.
88. Lo eday, Rise and Decline.
89. Kaukiainen, Ulos Maailmaan, 11–12.
90. Tomlinson, Mo elli, and W igh , Decline o Ju e.
91. Panza, ‘De-indus ializa ion’.
92. Bakke , ‘Decline and Fall,’ 318.
93. Blecke , ‘Ma kup P icing’.
94. Mu mann, Knowledge.
95. Coke , Fishe ies; Cushman, Guano.
96. Lo eday, Rise and Decline.
97. Hau ala, Suomen Te akauppa.
98. Bakke , ‘Decline and Fall’.
99. B own, ‘Collapse’.
100. Kleppe , ‘Indus y Li e Cycles’.
101. Bakke , ‘Decline and Fall’.
102. Ojala, Vou ilainen, and Lambe g, ‘E olu ion’.
103. Lie, ‘Ma ke Powe ’.
104. Bakke , ‘Decline and Fall’.
105. Cizakca, ‘P ice His o y’.
106. Tenold, I e sen, and Lange, Global Shipping; Ha la is e al., Wo ld’s Key Indus y.
107. Lazonick, ‘Compe i ion’.
108. Panza, ‘De-indus ializa ion’.
109. Manne ing e al., ‘B and Loyal y.’ See also Helpe , ‘S a egy and I e e sibili y’.
110. Male ba, Semiconduc o Business.
111. Bu on, Rise and Fall.
112. Lo enz, Economic Decline in B i ain.
113. Aud e sch, ‘New-Fi m Su i al’.
114. Ma ch, ‘Explo a ion and Exploi a ion’; O’Reilly and Tushman, ‘Ambidex e i y’.
115. Fo example, Teece, ‘Explica ing Dynamic Capabili ies’; Pa el and Pa i , ‘Technological
Compe encies’.
116. See also Napoli ano e al., ‘In Sea ch’.
117. Teece, ‘Explica ing Dynamic Capabili ies,’ 1322.
118. Fo example, Ankli and Somme , ‘Role o Managemen ’.
119. A gy es and Liebeskind, ‘Con ac ual Commi men s’.
120. Fo example, Al od, ‘Flagging o Failing?’; Chandle , Visible Hand; Chandle , Scale and Scope.
121. McCloskey, Economic Ma u i y; Edge on, ‘Decline o Declinism’.
122. Lazonick, ‘Compe i ion,’ 37.
123. Lloyd-Jones and Lewis, ‘Pe sonal Capi alism’.
124. Channon, S a egy and S uc u e.
125. Jä inen e al., ‘Fall and he F agmen a ion’.
126. Boo hman, ‘High Finance/Low S a egy’
127. Ca ney, False P o i s; Lo eday, Rise and Decline.
128. Lazonick, ‘Indus ial O ganiza ion’; Lazonick, ‘Compe i ion’.
129. Fo example, Al o d, ‘Flagging o Failing?’; Bu on, Rise and Fall; Collins and Robbins, B i ish
Cul u e; Wiene , English Cul u e.
130. A o a, B ans e e , and D e , ‘Going So ’.
131. Ankli and Somme , ‘Role o Managemen ,’ 230.
148 J.-A. LAMBERG ET AL.
132. Lo enz, ‘E olu iona y Explana ion’.
133. Po ac e al., ‘Compe i i e G oups’.
134. Magee, ‘Compe ence o Omniscience?’.
135. Laamanen e al., ‘Explana ions o Success’.
136. Teece, ‘Explica ing Dynamic Capabili ies’.
137. See Ca ani, Po ac and Thomas ‘Ca ego ies and Compe i ion’ and S okes and Banken,
‘Cons uc ing an “Indus y”’.
138. C . Romanelli, ‘E olu ion’.
139. Zo and Ami , ‘Fi Be ween’.
140. Aspa a e al., ‘S a egic Managemen ’.
141. Chesb ough and Rosenbloom, ‘Role o he Business Model’.
142. Spende , Indus y Recipes.
143. Po ac e al., ‘Compe i i e G oups’.
144. Fiss, ‘Se -Theo e ic App oach’.
145. Po ac e al., ‘Compe i i e G oups Re isi ed’.
146. Kleppe , Indus y Li e Cycles; Ha igan, S a egies o Declining Businesses; McGahan, ‘How
Indus ies Change’; Menzel and Fo nahl, Clus e Li e Cycles.
147. Fo example, Po e , Compe i i e Ad an age.
148. Fo example, Jacobides, ‘A chi ec u e and Design’; Teece, ‘Explica ing Dynamic Capabili ies’.
149. Fo example, Acemoglu, Johnson, and Robinson, ‘Ins i u ions’
150. Jacobides, ‘A chi ec u e and Design’.
151. A gy es and Liebeskind, ‘Con ac ual Commi men s’ cons ain enewal a emp s by bo h
main aining ba ie s o exi and demo i a ing enewal a emp s in cases in which public
au ho i ies suppo he declining indus y ia p o ec ionis policies and subsidies.
152. Ge schenk on, Economic Backwa dness.
153. Mu mann, Knowledge, and Kogu and Zande , ‘Did Socialism’.
154. Mu mann, Knowledge, and B aguinsky and Hounshell, ‘His o y’.
155. S okes and Banken, ‘Cons uc ing an “Indus y”’.
Acknowledgemen s
We hank he discussan s and e iewe s o 2015 Business His o y Con e ence in Miami, Indus y S udies
2016 Con e ence in Minneapolis, 2017 Academy o Managemen mee ing in A lan a, and wo kshops
and semina s a he Uni e si y o Jy äskylä du ing he yea s 2012 and 2017 o commen s and insigh s.
We a e indeb ed o Da id Kois inen, A i Hyy inen and Kalle Pajunen o hei commen s and help.
Finally, we acknowledge esea ch assis ance o Ja mo Taskinen, Nooa Nykänen, and Aleksi Rauhala in
coding and a anging pa s o he esea ch ma e ial.
Disclosu e s a emen
No po en ial con lic o in e es was epo ed by he au ho s.
Funding
This wo k was suppo ed by Academy o Finland [g an numbe 269654]
No es o con ibu o s
D . Juha-An i Lambe g is a P o esso o S a egy and Economic His o y a he Uni e si y o Jy äskylä.
His esea ch has ocused on his o y o s a egy and indus y e olu ion. He has published esea ch in
he Academy o Managemen Re iew, S a egic Managemen Jou nal, he Jou nal o Managemen S udies,
Indus ial and Co po a e Change, Academy o Managemen Lea ning & Educa ion, as well as o he leading
BUSINESS HISTORY 149
jou nals. P o . Lambe g has won he 2008 Sloan Founda ion’s Indus y S udies Bes Pape P ize, he 2009
Ca olyn Dex e Awa d in 2009 a he Academy o Managemen Con e ence, and he 2015 Ou s anding
A icle o he Yea a he Academy o Managemen Lea ning & Educa ion.
D . Ja i Ojala is a p o esso o compa a i e business his o y a he Uni e si y o Jy äskylä and he
Edi o -in-Chie in Scandina ian Economic His o y Re iew. He specializes in economic, business and
ma i ime his o y. His ecen a icles include “Deskilling and Decline in Skill P emiums du ing he Age o
Sail: Swedish and Finnish Seamen, 1751–1913” (wi h Jaakko Pehkonen ja Ja i Elo an a) in Explo a ions
in Economic His o y 61 (2016): 85–94 and “Ma i ime His o y: A Heal h Check” (wi h S ig Tenold) in
In e na ional Jou nal o Ma i ime His o y 29, no. 2 (2017): 344–354. In 2016 Ojala was awa ded he Finnish
Academy o Science and Le e s’ Eino Ju ikkala P ize o ou s anding esea ch in his o y.
D . Mi a Pel oniemi is a senio esea che in Technology Managemen a Uni e si y o Jy äskylä.
He esea ch ocuses on he in e play o echnological change and indus y s uc u e. She has pub-
lished esea ch in In e na ional Jou nal o Managemen Re iews, Technology Analysis and S a egic
Managemen , and Games and Cul u e, among o he s. She is also a consul ing edi o o In e na ional
Jou nal o Managemen Re iews.
ORCID
Juha-An i Lambe g h p://o cid.o g/0000-0003-3173-0199
Ja i Ojala h p://o cid.o g/0000-0002-4348-8857
Re e ences
NOTE: The decline s udies used in he analysis a e ma ked wi h as e isk (*)
Abe, E., and T. R. Gou ish, eds. Japanese Success? B i ish Failu e? Compa isons in Business Pe o mance
since 1945. Ox o d: Ox o d Uni e si y P ess, 1997.*
Acemoglu, D., S. Johnson, and J. A. Robinson. “Re e sal o Fo une: Geog aphy and Ins i u ions in he
Making o he Mode n Wo ld Income Dis ibu ion.” The Qua e ly Jou nal o Economics 117, no. 4
(2002): 1231–1292. doi:10.1162/003355302320935025.
Acemoglu, D., S. Johnson, and J. A. Robinson. “Ins i u ions as a Fundamen al Cause o Long-Run G ow h.”
In Handbook o Economic G ow h, edi ed by P Aghion and S Du lau , 385–472. Ams e dam: Else ie ,
2005.
Al o d, B. W. E. “Flagging o ailing? B i ish Economic Pe o mance, 1880–1914.” In The B i ish Indus ial
Decline, edi ed by J. P. Do mois and M. Din en ass, 23–56. London: Rou ledge, 1999.*
Alladin, MI. “Economic De elopmen in a Plan a ion Economy: The Decline o he Suga Indus y in
Mau i ius.” S udies in Compa a i e In e na ional De elopmen (SCID) 21, no. 4 (1986):88–106.*
Anand, J. and H. Singh. “Asse Redeploymen , Acquisi ions and Co po a e S a egy in Declining
Indus ies.” S a egic Managemen Jou nal 18, no. S1 (1997): 99–118.* doi:10.1002/(SICI)1097-
0266(199707)18:1+<99::AID-SMJ928>3.0.CO;2-B
Ankli, R. E. and E. Somme . “The Role o Managemen in he Decline o he Ame ican S eel Indus y.”
Business and Economic His o y 25, no. 1 (1996): 217–231.*
A gy es, N. S., and J. P. Liebeskind. “Con ac ual Commi men s, Ba gaining Powe , and Go e nance
Insepa abili y: Inco po a ing His o y in o T ansac ion Cos Theo y.” Academy o Managemen Re iew
24, no. 1 (1999): 49–63. doi:10.5465/AMR.1999.1580440.
A o a, A., L. G. B ans e e , and M. D e . “Going So : How he Rise o So wa e-Based Inno a ion Led
o he Decline o Japan’s IT Indus y and he Resu gence o Silicon Valley.” Re iew o Economics and
S a is ics 95, no. 3 (2013): 757–775. * doi:10.1162/REST_a_00286.
Aspa a, J., J.-A. Lambe g, A. Laukia, and H. Tikkanen. “S a egic Managemen o Business Model
T ans o ma ion: Lessons om Nokia.” Managemen Decision 49, no. 4 (2011): 622–647.
doi:10.1108/00251741111126521.
156 J.-A. LAMBERG ET AL.
Temin, P. “The Rela i e Decline o he B i ish S eel Indus y, 1880-1913.” In Indus ializa ion in Two
Sys ems: Essays in Hono o Alexande Ge schenk on, edi ed by H Roso sky, 67–83. New Yo k: John
Wiley & sons, 1966.*
Tenold, S., and H. W. No d ik. “Coping wi h he In e na ional Shipping C isis o he 1970s: A S udy
o Managemen Responses in No wegian Oil Tanke Companies.” In e na ional Jou nal o Ma i ime
His o y 8, no. 2 (1996): 33–69. doi:10.1177/084387149600800203.
Tenold, S., M. J. I e sen, and E. Lange, eds. Global Shipping in Small Na ions: No dic Expe iences a e
1960. Basings oke, UK: Palg a e Macmillan, 2012.
Ti any, P. A. The Decline o Ame ican S eel: How Managemen , Labo , and Go e nmen Wen W ong. Ox o d:
Ox o d Uni e si y P ess, 1988.
Ti a soo, Nick. “B i ish Managemen 1945-1964: Re o me s and he S uggle o Imp o e S anda ds.” In
Japanese Success? B i ish Failu e? Compa isons in Business Pe o mance since 1945, edi ed by E. Abe
and T. R. Gou ish, 77–98. Ox o d: Ox o d Uni e si y P ess, 1997.*
Tomlinson, J., C. Mo elli, and V. W igh . The Decline o Ju e: Managing Indus ial Change. London: Picke ing
& Cha o, 2011.
Ullmann, J.E. The Ana omy o Indus ial Decline: P oduc i i y, In es men , and Loca ion in U.S. Manu ac u ing.
New Yo k: Quo um Books, 1988.*
Valk, P. A ican Indus y in Decline: The Case o Tex iles in Tanzania in he 1980s. Basings oke: Macmillan
in associa ion wi h he Ins i u e o Social S udies, 1996*.
Whisle , T. R. The B i ish Mo o Indus y, 1945–1994: A Case S udy in Indus ial Decline. Ox o d: Ox o d
Uni e si y P ess, 1999*.
Wiene , M. J. English Cul u e and he Decline o he Indus ial Spi i , 1850–1980. Camb idge, UK: Camb idge
Uni e si y P ess, 1981*.
Wi eloos uijn, A. V. “B idging Beha io al and Economic Theo ies o Decline: O ganiza ional Ine ia,
S a egic Compe i ion, and Ch onic Failu e.” Managemen Science 44, no. 4 (1998): 501–519*.
Womack, J. P. The Decline o he Ame ican Au o Indus y and he Sea ch o Indus ial Policy. Camb idge,
MA: Fu u e o he Au omobile P og am, 1981*.
Zo , C., and R. Ami . “The Fi be ween P oduc Ma ke S a egy and Business Model: Implica ions o
Fi m Pe o mance.” S a egic Managemen Jou nal 29, no. 1 (2008): 1–26. doi:10.1002/smj.642.