#4634. Industrial relations and technical change: Profits, wages and costs in the Lancashire Cotton Industry, 1880-1914

July 2026publication date
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Journal’s subject area:
Business, Management and Accounting (all);
Management of Technology and Innovation;
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Abstract:
The institutional perspective sees the economic decline in the twentieth century as rooted in the rigidities established at the end of the nineteenth. The competitive capitalism which had served Britain well in the earlier parts of the nineteenth century failed to transform itself into the corporate capitalism necessary for success by the centurys end. From an institutional perspective the Lanca- shire cotton industry provides a classic example of this predicament. Its first basic weakness lay in its industrial organization. The vertical specialization that characterized the industry - in particular, the split between cotton spinners and cotton weavers - meant that there did not exist the co-ordination of decision-making necessary to replace traditional methods of production. This, it is argued, was a situation which persisted wel linto the twentieth century and which saw the industry unable in the end to withstand the pressures of foreign competition.
Keywords:
Сompetitive capitalism; cotton industry; economic decline; traditional methods of production

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