Abstract

In recent years, the subject of industrialization and economic development of underdeveloped countries has received considerable attention by scholars and statesmen. The expanding literature on the subject, as well as various world conferences and U.S. debates, seems to suggest that the economic development of these countries has become one of the great world crusades of the present time. The article attempts to pinpoint some of the important obstacles to the introduction of advanced management know-how in underdeveloped countries. Attention was directed mainly to the managerial and economic variables which affect management practices in these countries. The principal barriers to the successful introduction of advanced managerial practices are the sellers' market condition and the short-run profit maximization philosophy of the owners of industrial firms in these countries. The first solution is at the governmental level to remove excessive controls and restrictions to create healthy competitive forces and the second one is at the individual-enterprise level to change the short-run profit maximization philosophy of the owner of industrial firms.