Can the Concept of ‘Early’ and ‘Late’ Industrialization Explain the Key Institutional and Organizational Characteristics of National Business Systems, and Do They Have Any Bearing on Long-Term National Competitiveness?

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Can the concept of ‘early’ and ‘late’ industrialization explain the key institutional and organizational characteristics of national business systems, and do they have any bearing on long-term national competitiveness? Introduction The concept of industrialization has been used among different nations and regions, while many countries have carried out their own industrialization progress during the past several decades, which stimulates the development of organizations and better corporate performance. There are different kinds of national business systems with their distinctive characteristics varying among countries. Then ‘early’ and ‘late’ industrialization is applied to describe two main types of national businesses that…show more content…
He pointed out that different economic levels have their own requirements and they may not follow the same process of industrialization. Moreover, he raised the most influential theory related to late industrialization that the economically backward states may have rapider growth rate as they are late comers, and the national development process relied on the degree of economic backwardness. That is to say the more backward a country, the faster it will advance (ibid). Financial system and Business groups There are several aspects of early and late industrialization that bring about institutional and organizational characteristics differences among countries. The various financial systems and business groups is one of the key factors which affect the actual economic behavior. According to Hutton (1995), the financial systems in the UK and US are stock market oriented, which require high returns relatively. The major organizations are controlled by stock-holders in the US. These financial institutions operate their business while trading shares in an intense competitive stock market, which makes them to adjust and react quickly to changing market conditions. Hence such unstable investment environment forces all the companies take the risk of being merged or taken over by rivals as long as they occupy their shares largely on the stock
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