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The London School of Economics and Political Science an Institutional Analysis of the Formation of Jobs in Software Work In

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The London School of Economics and Political Science an Institutional Analysis of the Formation of Jobs in Software Work In The London School of Economics and Political Science An Institutional Analysis of the Formation of Jobs in Software Work in the United States, 1945-2001 Roohollah Honarvar A thesis submitted to the Department of Management of the London School of Economics for the degree of Doctor of Philosophy, London, April 2015 1 Declaration I certify that the thesis I have presented for examination for the PhD degree of the London School of Economics and Political Science is solely my own work other than where I have clearly indicated that it is the work of others (in which case the extent of any work carried out jointly by me and any other person is clearly identified in it). The copyright of this thesis rests with the author. Quotation from it is permitted, provided that full acknowledgement is made. This thesis may not be reproduced without my prior written consent. I warrant that this authorization does not, to the best of my belief, infringe the rights of any third party. I declare that my thesis consists of 95,307 words (including footnotes but excluding bibliography and appendices). 2 Abstract Information technology (IT) jobs are characterized by continuous change and increasing fragmentation, yet there is no explanation for why this has been the case. In this research, drawing on a historical institutional perspective, I study IT work as an instant of skilled work under capitalism that is subject to interactions among different institutions over long periods of time. In particular, I focus on the dynamics of the relationship between the institutional arrangements of skill formation in IT work, competition in the IT industry and employment relationships in the IT labor market. The main actors involved in the shaping of these institutional arrangements are the government, IT corporations and workers. Empirically, the research focuses on the history of software work in the U.S. IT industry (1945-2001). I draw on existing histories of the industry and corporations as well as a variety of publications that shed light on the industry, individual corporations, training institutions or the labor market. This includes newspapers and magazines, professional and trade journals, government and industry reports, company reports and archives, oral histories and biographies of software workers or businessmen. I study four periods of the history of the IT industry: the emergence of software work and the rise of IBM (1945-1954), IBM’s dominance before the unbundling decision (1955-1969), the dominance and decline of IBM (1969-1985), and finally, the rise of Microsoft until the burst of dotcom bubble (1985-2001). The central argument of this thesis is that, in the absence of a governmental intervention aimed at stabilizing the labor market, the strategic and tactical decisions of IT corporations involved in the dynamics of IT product competition destabilized IT jobs and effectively prevented the formation of a solid occupational collectivity which is a precondition of institutionalization of jobs. 3 Acknowledgements This work would have not been possible without the constant support of my parents who patiently watched over their son to pass through the various stages of academic life. There is no way I can thank them enough. I am forever grateful. My childhood sweetheart, love of life and dear wife, Samaneh, has been a constant source of encouragement and support. She has been the true ‘programmer’ of our life, without whom I would have not been able to accomplish this work. She and our sweet daughter, Salva, made home such a comfortable place that I did not need to go anywhere else to work on this thesis. I also thank my sister and brother, Dorri and Rooholamin, who in spite of the distance between us, were always there whenever I needed them. I have learned a lot from the intellectual environment of ISIG and I am grateful for the opportunity. In particular, I wish to thank Jannis Kallinikos, my second supervisor, for his constant support and invaluable advice. Carsten Sørensen and Will Venters also provided valuable feedback at earlier stages of my research; I thank them both. My virtuoso friend, Cristina Alaimo introduced me to Canvases and Careers, a book that shaped my approach in this study. Grazie! I have also enjoyed the conversations and discussions I have had with Anouk Mukherjee and Mahmood Zarger, my friends in this long journey in the IS field. Thank you guys. Finally, I am indebted to my supervisor Prof. Chrisanthi Avgerou. She was my teacher before I came to LSE and will remain my mentor long after I leave. With her generosity, patience and kind advice, she taught me lessons that I will not forget. 4 Table of Contents List of abbreviations 8 List of tables 10 List of figures 11 1 Introduction……………………………………………………………………............. 12 1.1. Background 12 1.2. Statement of the problem 15 1.3. Structure of the text 18 Part One: Literature, Theory and Methodology 2 Literature Review……………………………………………………………………….. 21 2.1. Introduction 21 2.2. Understanding occupations and occupational change 21 2.3. Understanding occupational change in IT work 23 2.4. Occupational change in the context of IS departments 27 2.5. Summary and conclusion 28 3 Definitions and Theoretical Framework………………………………………………. 30 3.1. Introduction 30 3.2. Occupations and skills in the age of organizational dominance 32 3.3. Linking regimes of skill formation to competition in the IT industry 36 3.4. Placing the theoretical framework within institutional theory 39 3.5. Conclusion 43 4 Methodological Considerations and Notes on Historiography………………………… 45 4.1. Background 45 4.2. Process tracing and colligation in historically-oriented social research 47 4.3. Reflections on my research 51 4.4. The ontological and epistemological foundations of my research 54 4.5. Constructing the objects of study 56 4.5.1. The object of study: software work 56 4.5.2. The geographical boundaries 60 4.5.3. The beginning, the end and turning points 61 4.6. Notes on the sources 62 Part Two: Historical Narrative – Software Work in the American IT industry 1945-2008 5 The Rise of Software Work: 1945-1954…………………………………………….… 65 5.1. Introduction 65 5.2. The Beginning: proto-software work in two early cases 65 5.3. Analysis 68 5 5.4. Into 1950s: Farewell Mathematics, Hello Automated Programming 71 5.5. Analysis 82 5.6. The origins and legacy of SAGE project 91 5.7. Analysis 97 5.7.1. Psychometric tests 97 5.7.2. The software factory ideal and the organization of software development 102 5.8. Summary 105 6 The Rise of IBM in the Computer Industry: 1954-1969…………………….................... 107 6.1. The shaping of competition in the computer industry 107 6.2. Analysis of the competition 121 6.3. The importance of vendor-provided training 125 6.4. Rapid expansion of the labor market 132 6.4.1. The socio-political environment of labor market 137 6.4.2. Associations of software workers 139 6.5. Employment policies 142 6.6. Implications for software work 146 7 An IBM World: 1969-1985……………………………………………………………… 150 7.1. Competition in the industry 150 7.2. Analysis of the competition 160 7.3. The role of dissemination of skills in the transformation of microcomputers 161 7.4. Varieties of Software Work 168 7.4.1. The Computer industry 169 7.4.2. Software companie 176 7.4.3. Analysis 178 7.5. Skills and the boundaries of labor market 181 7.5.1. Continual problematic of skills 181 7.5.1. Status of programmers according to the courts and government 181 7.5.2. SCDP and the Licensing of Data Professionals 184 7.6. Implications for software work 186 8 New competition, new workplace: 1985-2001…………………………………………… 188 8.1. The rise of Microsoft 188 8.2. Analysis of the competition 193 8.3. Employment Policies 195 8.3.1. Employment policies and decisions in IBM 196 8.3.2. Other computer companies 201 8.3.3. Software companies 202 8.3.4. Employment policies and decisions at Microsoft 204 6 8.4. A new institutional arrangement for vendor-provided training 208 8.5. Labor market 218 8.5.1 Worker associations and employee groups 219 8.5.2 The role of IT companies and business associations in shaping the IT labor market 223 8.6. Implications for software work 228 Part Three: Discussion and Conclusion 9. Discussion…………………………………………………………………………………236 9.1. Summary of the narrative 236 9.2. Reconstructing the argument 243 9.3. Developments since 2001 249 10 Conclusion……………………………………………………………………………… 253 10.1. Summary of the argument 253 10.2. Placing IT work in its social and historical context 254 10.3. Learning lessons 256 10.4. Thinking about the future 257 10.5. Contributions 260 10.6. Limitations and further research 260 Appendix: Event map of the narrative……………………………………………………… 262 References……………………………………………………………………………………26 7 7 List of Abbreviations ACM Association of Computing Machinery ACPA Association of Computer Programmers and Analysts ACT Advanced Computer Techniques ADAPSO Association of Data Processing Service Organizations ADP Automatic Data Processing ADR Applied Data Research AMD Advanced Micro Devices AOL America Online ASK ASK Group BYU Brigham Young University CASE Computer-Aided Software Engineering CCP Certificate in Computer Programming CDC Control Data Corporation CDP Certified Data Professional C-E-I-R Council for Economic and Industrial Research CNE Certified Netware Engineer CNP Certified Network Professional CompTIA Computing Technology Industry Association CPA Certified Public Accountant CSC Computer Sciences Corporation CUC Computer Usage Company DEC Digital Equipment Corporation DPMA Data Processing Management
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