In each industry, technology determines industrial structure, which Essay

In distributively industry, technology determines industrial bodily structure, which determines the conduct of firms, which in turn determines the performance of firms. justify and critically evaluate this statement - Essay Example only the reflection of this relationship would be sooner clearly evident in relation with the entitys market performance. In a larger macroeconomic context, such technological changes are in a broader sense expected to make impacts in the frugality my as well.The aim to which technology would affect the performance of an industry is however heterogeneous. This would mean that the micro level response of various firms to technological innovations and policy changes would vary to a larger extent (Smith K ,1999). However while analysing the macro level relationship, an evident sign of linkage can be found amid the industrys performance in the global scenario and the technology. This linkage has been found in the history of either industry. To understa nd the relevance of this statement the replacement of many traditional hand driven industries with automated technologies would be an ideal example. Ranging from agriculture to oil mining, technology always has changed the face and structure of the specific industry as per the standards of the age. However it is true that there are many other factors which drive the technological innovations specific to each industry.From the experiences in the history, it is quite evident that technology would bring massive change in the industrial structure both generic and specific to individual firms. Along with the relation of the structural changes with the performance of individual firms, it to a fault important to understand the integration of these individual changes into complex social and economic relationships with their environments (Smith K ,1999). There are number of theories explaining the macro effect of the structural changes in the industry in relation with technology.This theory is found on the disequlibrium crop model based on creative destruction. It clearly proves the relationship of performance and growth of the industry with the introduction of substantial changes in