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DANISH RESEARCH UNIT FOR INDUSTRIAL DYNAMICS

This paper empirically draws upon a questionnaire survey, conducted in 1900 Danish Firms in 1996, which were related to changes in the intra firm organization. The topics in the survey were among others if the firms had made any significant organizational changes, how the firm developed it human resources, and what were the motives for changing the organization. From the analysis of the data, we find strong implications that the sharpened competition is the primary driving force in firms propensity to change their organization. By a division of the firms into three groups ( the C-firms, the A-firms and the S-firms ), accordingly to how sharpened the firms state that the competition have become in the recent years, we analyse if there are significant and consistent differences, in how firms in the three groups react. From the analysis we see that the propensity to change and adapt are much higher among the firms who have witnessed the sharpest rise in competition (the C-firms), in relation to the two other groups of firms. Further we see a very clear and consistent picture of the directions of change among the C-firms. The C-firms tend to change towards what in broad terms are called a flexible form of organization. The C-firms emphasise human resources, they develop their human resources, they apply modern management tools , they introduce innovations both related to products and processes, to a much higher extent than the to other firm types. From the analysis there are put forward some policy implications which are related to especially the marginallization of the unskilled workers. Further some implications related to the skills of the workers as well as the managers needed in a learning economy, are presented.