Back to the failure: an analytic narrative of the De Lorean debacle

Graham Brownlow*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

8 Citations (Scopus)
528 Downloads (Pure)

Abstract

There has been a recent identification of a need for a New Business History. This discussion connects with the analytic narrative approach. By following this approach, the study of business history provides important implications for the conduct and institutional design of contemporary industrial policy. The approach also allows us to solve historical puzzles. The failure of the De Lorean Motor Company Limited (DMCL) is one specific puzzle. Journalistic accounts that focus on John De Lorean's alleged personality defects as an explanation for this failure miss the crucial institutional component. Moreover, distortions in the rewards associated with industrial policy, and the fact that the objectives of the institutions implementing the policy were not solely efficiency-based, led to increased opportunities for rent-seeking. Political economy solves the specific puzzle; by considering institutional dimensions, we can also solve the more general puzzle of why activist industrial policy was relatively unsuccessful in Northern Ireland.

Original languageEnglish
Pages (from-to)155-181
Number of pages27
JournalBusiness History
Volume57
Issue number1
Early online date13 Feb 2015
DOIs
Publication statusPublished - 2015

Keywords

  • analytic narrative
  • entrepreneurship
  • industrial policy
  • institutions
  • Northern Ireland

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)
  • Business and International Management
  • History

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