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Downsizing and productivity: The case of UK motor vehicle manufacturing 1974-1994

Author

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  • Alan Collins

    (Department of Economics, University of Portsmouth, Hampshire, UK)

  • Richard I.D. Harris

    (Department of Economics, University of Portsmouth, Hampshire, UK)

Abstract

An empirical investigation of the downsizing-productivity relationship has emerged from the USA. This paper presents further evidence drawn from another country's experience. Detailed commentary on key trends in the UK motor vehicle industry informs an analysis applying the Baily et al. [Baily, Bartelsman and Haltiwanger (1994) Downsizing and productivity growth: myth or reality? National Bureau of Economic Research Working Paper No. 4741; (1996a) Downsizing and productivity growth: myth or reality? In Sources of Productivity Growth (edited by D.G. Mayes), New York: Cambridge University Press; (1996b) Downsizing and productivity growth: myth or reality? Small Business Economics, 8 , 259-278] taxonomic model, yielding insights into the varieties of downsizing-productivity linkages therein. Evidence presented shows productivity growth was indeed higher in those plants that successfully downsized, but that those plants that were unsuccessful at downsizing tended to have among the worst productivity growth rates. Unsuccessful downsizers accounted for a significant part of the overall decline in productivity after 1989. Copyright © 1999 John Wiley & Sons, Ltd.

Suggested Citation

  • Alan Collins & Richard I.D. Harris, 1999. "Downsizing and productivity: The case of UK motor vehicle manufacturing 1974-1994," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 20(5), pages 281-290.
    • Handle: RePEc:wly:mgtdec:v:20:y:1999:i:5:p:281-290
    DOI: 10.1002/(SICI)1099-1468(199908)20:5<281::AID-MDE939>3.0.CO;2-H
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    References listed on IDEAS

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    1. Anonymous, 1991. "The Automobile Industry," Business History Review, Cambridge University Press, vol. 65(4), pages 1-1, January.
    2. Baily, Martin Neil & Bartelsman, Eric J & Haltiwanger, John, 1996. "Downsizing and Productivity Growth: Myth or Reality?," Small Business Economics, Springer, vol. 8(4), pages 259-278, August.
    3. Christian Dor, 1993. "Strategies of Multinational Industrial Groups: The Car Industry," Palgrave Macmillan Books, in: Zuhayr Mikdashi (ed.), Financial Strategies and Public Policies, chapter 17, pages 147-150, Palgrave Macmillan.
    4. Keasey, Kevin & Thompson, Steve & Wright, Mike (ed.), 1997. "Corporate Governance: Economic and Financial Issues," OUP Catalogue, Oxford University Press, number 9780198289913.
    5. Geroski, P A & Murfin, A, 1991. "Entry and Intra-industry Mobility in the UK Car Market," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 53(4), pages 341-359, November.
    6. repec:bla:obuest:v:62:y:2000:i:2:p:243-65 is not listed on IDEAS
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    3. Chiara N Focacci & Vassil Kirov, 2021. "Regional entrepreneurial ecosystems: Technological transformation, digitalisation and the longer term—The automotive and ICT sectors in the UK and Bulgaria," Local Economy, London South Bank University, vol. 36(1), pages 56-74, February.

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