The empirical applications of industrial restructuring strategies
constitute France and Spain in the 1980s and 1990s. These regions have
witnessed the increasing unemployment and financial losses of many of the key
industries in these regions. Both the French and Spanish governments came to power
in a broader historical context market with long-term changes in productivity
activity. In France and Spain, along with the increase in industrial
development and capital income, there has been a decline in production as well
as in the service sector. Industrial restructuring in France and Spain has had
considerable consequences for three reasons (Smith, 1998). Firstly, since the
second oil shock of these governments in 1979, governments have been in power
longer than other national European governments because they had the time and
the political power to apply economic strategies on industrial restructuring. Second, the
governments of France and Spain came to power after a long-term restructuring.
Finally, Socialist parties in both France and Spain promised to reshape local
economic priorities and structures (Smith, 1998). Three factors, political
life, first public expectation and party program, suggested different
approaches to industrial restructuring. For this reason, French and Spanish
cases are critical to present relatively robust examples of this approach; it
is possible to use it in some regions. Second, the governments of France and Spain came to
power after a long-term restructuring. Finally, the Socialist parties in France
and Spain promised to shape the local economic priorities and structures from
scratch (Smith, 1998). Three factors, political life, first public expectation
and party program, suggested different approaches to industrial restructuring.
For this reason, French and Spanish cases are critical to present relatively
robust examples of this approach; it is possible to use it in some regions.
study of French and German managers working on unions and joint ventures was
due to the fact that the conflicts in business relations were largely due to
cultural differences in organizational behavior related to planning,
competence, commitment, monitoring and teamwork. In general, inadequate
accountability can be obtained for conservative aspects of conservatism in the
corporate culture (Harper and Cormeraie, 1995 and Perkins, 1997).
There are a number of ways in which industrial and organizational
restructuring can be used in planning. The theory is focused on mainly three
categories. These concepts are downsizing, reengineering and outsourcing. These
restructuring policies of organizations show that how industrial restructuring
can adapt in regional economics.
It can be said that a lot of ways in industrial and organizational
restructuring are usable in planning. This theory can be divided into three
categories. The categories are downsizing, reengineering and outsourcing. This
three policies display how industrial restricting can adjust in regional
“Downsizing refers to a reduction in organizational size through a set
of actions aimed at improving efficiency, productivity, and competitiveness of
industries. It is acclaimed with the four aspects. Downsizing is an intentional
set of activities that includes elevation in personnel and improving efficiency
through a targeted set of organizational changes while adapting work processes”
“The recognition appears to be growing that successful downsizing must
be related to management ‘vision’ for the future of the corporation and a
corporate strategy” (Davis et al., 2003). Downsizing was still appearing in
late 1990’s and the reason was the economy of cities are concentrated in
industry. This situation tells a specific attribution to existing downsizing term,
businesses could cut staff down at the time of growth periods of industries,
jusy like economic recession processes.
“Reengineering means to the fundamental rethinking and redesign of
business processes to achieve significant developments in critical,
contemporary measures such as cost, quality, service, and speed in the
industrial regions” (Hammer, 1993). Restructuring strategy consists of such
actions as increasing functions, hierarchical levels, divisions of labors, or
products; redesigning work tasks; and developing units in their review on
reengineering, These strategies have often failed to consider whether the
culture of the organization and its supporting systems which include communications,
training, selection, compensation, and The main reason to achieve success is to
be strategic. Understanding of reengineering is compelling and this concept’s implications
has to have small resolution to search for this concept’s relationship with
health, environment and safety programs.
“This issue is currently coming
to the forefront in the business process management field with recent calls for
investigating environmental sustainability in business process management
journals” (Alt?nkemer et al., 1998).
“Outsourcing refers to the use of outside merchants to perform previously
to take on product lines. Environmental sustainability perspective in
industrial regions, outsourcing activities are part of greening supply chains
and decisions (Sarkis, 2004)”.
“There are three types of outsourcing which are secondary: noncore areas
are contracted to an outside vendor; subsidiary: business units are spun off into
smaller, quasi-independent entities that are more flexible, innovative, and
efficient; and collaborative: competitors work together on specific joint
projects to distribute risk and take advantage of synergistic effects” (Gupta
and Zhender, 1994).
“Outsourcing can afford higher flexibility for firms which are located
in industrial regions, and allowing these firms to take advantage of changing
technologies and new sources of knowledge. In addition, outsourcing term of the
restructuring of the industries allow individual firms to make efficient use of
scarce, highly specialized talent” (Kochan et al. 1994).
Some industrial organization have developed their own environmental performance
with outsourcing to change responsibility for the problem rather than solving
it by using environmentally destructive processes. Thus, getting a complete
measure of the impact of outsourcing on environmental performance needs
performance measures and indicators that incorporate the firms’ supply chain
before and after outsourcing. Unfortunately, this type of information will be
available in industrial areas (Kelley 1995).