The Schumpeterian shock at General Motors in the 1920’s

Abstract

Purpose The purpose of this paper is to examine the link between Joseph Schumpeter’s economics and the rise of General Motors (GM). Design/methodology/approach The paper uses regression analysis and time series analysis of market synchronization. Findings There is a strong link between GM rise to dominance of the domestic automobile industry and nuanced features of Schumpeterian economics. Research limitations/implications The paper furthers the examination of the role of information economics on marketing channel performance. Practical implications Information helps in production decisions by synchronizing production with consumer demand. Social implications Economic efficiency enhances the human welfare for better forecasting, lower inventories and greater profits. Originality/value This topic has been explored before but methodology used in this paper is innovative. The paper uses Granger causality.