We can see an example of such innovations of specialization if we look at the U.S. fruit industry during the first decades of the 20th century. Before this type fruit was sold in local markets only. Once the innovations of rail transportation and refrigeration became reality, fruit growing became nationally based. However, because of these innovations, regional specialization of fruit production transformed the industry. For example, deciduous fruits were grown in the Pacific region because of specialization due to climate and soil conditions.
Likewise, many developing countries have begun to increase their technological specialization due to technology innovations. In this way, countries and markets converge by becoming different and grow and survive by becoming more specialized. Thus, specialization allows for greater chances of survival through differentiation as well as allowing individual organizations to play on their strengths. Survival, to Barnard, is the primary goal of the organization and the only real measure of effectiveness. In fact, efficiency and effectiveness depend on the executive’s ability to either satisfy people or manipulate them “Behavior with reference to the other person either takes the form of regarding such persons as objects to be manipulated by changing the factors affecting them, or as subjects to be satisfied” (Barnard 40).
Innovations allow for greater specialization. In cooperative systems Barnard feels effectiveness and efficiency are seldom attained because of a lack of a central purpose. Specialization both externally and internally allows for more focused purpose. It is the executive’s function to give this kind of meaning to the overall environment as well as the individuals within it. Barlett and Ghoshal (88) discuss this concept, sounding quite similar to Barnard though he is given no credit by the authors for it “Purpose is the embodiment of the organization’s r