Strategic responses to low-cost competition: Technological lock-in in the Dundee jute industry

Abstract

This article examines path dependency and technological lock-in in the evolution of the Dundee jute industry, from its beginnings in the 1860s to its demise in the 1970s. The evolution of the industry is explored using the resource-based view of the firm (RBV). The results suggest that the nature and construct of jute fibre was the root cause of a lack of sustainable strategic responses in the sector. Path dependent decisions and technological lock-in meant that many firms were not able to make successful strategic switches, although the capabilities of their engineering skills allowed some firms to endure for longer. Thus, the article extends the RBV to a deeper firm capability level and complements cognate literature on the UK textile sector with a finer specification of the phases in jute’s evolution.

Keywords:

• Dundee jute industry
• innovation
• lock-in
• path dependency
• resource-based view
• strategic response
• strategic change
• technological change

Acknowledgments

We would like to thank the two anonymous referees for their insights and very constructive comments to strengthen the article. David Higgins provided invaluable help and encouragement.

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1 Ecco-loader was an automatic loader for shuttles, which meant that the looms did not have to be stopped to remove empty insert full shuttles. As a result, the device enabled weavers to attend more looms per weaver. Traditionally, a weaver attended one or two looms. However, the Ecco-loader allowed a weaver to attend upto six looms.

2 WYL365 Fairbairn Lawson, West Yorkshire Archive Service (WYA); MS114/1 BJTRA Annual Reports, MS 84/39/12/17 Minutes of Meetings of various ad hoc committees, MS 84/9/1 Wage Structure-Tenters Scheme, Dundee University Archives (DUA); list of interviewees, their primary position/role and interview date: David Fullerton: Owner of a merchant firm Fullerton & Wilson Limited (13th October 2006); Frank Barker; Factory manager (28th December 2006); Douglas Brewer: Owner of a spinning firm (20th December 2016); Ian Hutcheon: Production manager at Jute Industries and Low & Bonar (15th December 2006); Sandy McKay: In-charge of Research and Development at Jute Industries, Low & Bonar and Scott & Fyfe (10th January 2007); Joanne Taylor: In-charge of Research and Development at Low & Bonar (5th January 2007); Mr. Jim Balfour Jute machine engineer (18th January 2007).

3 MS114/1 BJTRA Annual Reports, DUA; Interview, R.R Atkinson: In-charge of research at British Jute Trade Research Association and Jute Industries during 1950s and 1960s (8th January 2007).

4 Firms were selected based on three criteria: first, availability of relevant archival sources; second, size of operations; and third, those that showcase contrasting approach to specialisation strategy.

5 Jute Industries: MS 66, DUA; Scottish Records Office SEP4/2952, Sandy McKay: In-charge of Research and Development at Jute Industries, Low & Bonar and Scott & Fyfe (10th January 2007). Craiks: DUA MS 74, Low and Bonar Private Collection; Scott & Fyfe: Interview with Hamish Tough, Chairman and Shareholder in Scott-Fyfe (16th January 2007). Additional information on the industry’s specialisation strategy was collected through interviews with: Christopher Bonar: Son of the founder and Executive director at Low & Bonar (3rd January 2007).

6 Average working time in Dundee was 56 h per week. The Indian industry averaged 72 h per week.

7 Monetary instability in the world markets, resulting from the demonetisation of silver, led to significant devaluation of the Indian currency

8 Initial members included: Craiks (weaver), Don Brothers Buist (spinning and weaving), Fullarton & Wilson (merchant), A&S Henry (merchant manufacturer), Jute Industries (spinning, weaving and merchanting), Low & Bonar (merchant manufacturer), Baxter Brothers (flax weaver- part of Low & Bonar), Thomas Bonar (merchant- part of Low & Bonar), Fairbairn Lawson (machine manufacturer), Douglas Frasier (machine manufacturer), James Mackie (machine manufacturer) and Scott & Fyfe (weaver).

9 sliver is a continuous strand of loose fibre, which can then be spun

10 Coarse fibre was used mainly for sacks and bags.

11 This company was earlier known as the United States Rubber Company and established in 1892. It became Uniroyal, Inc., in 1961. In 1990, Uniroyal was acquired by Michelin.

12 Scrim can be either very light and translucent or heavy and coarse. S&F’s version was the former type, which is ideal for curtains and in theatre use.