Investment decision-making and industrial performance: The British wool industry during the interwar years

摘要

As exogenous shocks impact on industry we believe it timely to revisit the experience of two 'staple' industries during the interwar period: cotton and wool textiles. Using a variety of under- explored primary source materials we argue that the ability to withstand the shocks of the interwar years was largely dependent on prior investment decisions. In cotton textiles the re floatation boom precluded strategic flexibility and encouraged collusion. The absence of such behaviour in wool textiles fostered competition and the pursuit of a successful marketing policy.