Technology, productivity and process change

Abstract A descriptive model of process evolution is proposed as a new basis for clarifying the relationships among technological innovation and productivity improvement within an organization. As a production process develops over time it does so with a characteristic pattern: process flows become more rational, tasks more specific, processes more capital intensive, product designs more standardized, etc. As this development continues over time the overall nature of a process is significantly altered and various stages of development can be noted that are similar in different industries and sectors. These stages have important implications for research on technological innovation and productivity improvement from a managerial and policy perspective. The paper explores the nature of this process evolution, the sources that stimulate this evolution, and several implications for research on technological innovation and productivity improvement.