The Evolution of Management Models: A Neo-Schumpeterian Theory

In the last century and a half, U.S. industry has seen the emergence of several different management models. We propose a theory of this evolution based on three nested and interacting processes. First, we identify several successive waves of technological revolution, each of which prompted a corresponding wave of change in the dominant organizational paradigm. Second, nested within these waves, each of these organizational paradigms emerged through two successive cycles—a primary cycle that generated a new management model making the prior organizational paradigm obsolete, and a secondary cycle that generated another model that mitigated the dysfunctions of the primary cycle’s model. Third, nested within each cycle is a problem-solving process in which each model’s development passed through four main phases: (1) identification of a widespread organizational and management problem, (2) creation of innovative managerial concepts that offer various solutions to this problem, (3) emergence and theorization of a new model from among these concepts, and (4) dissemination and diffusion of this model. By linking new models’ emergence to specific technological revolutions, we can explain changes in their contents. By integrating a dialectical account of the paired cycles with an account of the waves of paradigm change, we can see how apparently competing models are better understood as complementary pairs in a common paradigm. And by unpacking each model’s phases of development, we can identify the roles played by various actors and management concepts in driving change in the models’ contents and see the agency behind these structural changes.