Mental Transformation in Industrial Policies: An Analysis on Zombie Companies

Abstract

After the 2008 crisis, the Far East surpassed Europe and the USA in terms of production. In order not to miss the progress in the Far East, the "Industry 4.0" move came from Europe. With Industry 4.0, the digitalization of the industry has become possible. Thanks to this process, human labor, a decrease in the error rate and an increase in productivity and flexibility have been achieved. However, Industry 4.0 brings changes not only in production but also in management. In the process of digitalization of the industry that started after the 2008 crisis, our country tried to adapt to this situation as well as to change the management mentality. This situation in management is expressed as governance. The concept of governance is the common use of administrative, economic and political authority in public and private institutions. Co-management means co-management and it includes the concepts of interaction and communication, unlike management. The aim of the research is to examine the effect of digitalization on management understanding. In this review, personal computer digitization phase, internet digitization phase, mobile social media digitization phase, internet of things digitization phase, digital transformation fields in businesses. Zombie companies in Turkey and in the world have also been examined. According to the results obtained from the research, industrialists need to change their understanding of management over basic perspectives such as "Vision", "Mission", "Quality Concept" and "Total Quality Concept". Firms that have brought their business structures to a certain level of institutionalism and that have internal dynamism, fast-short decision-making processes, and that follow the market/market closely and that have a permanent team in the field have been able to survive. Companies that cannot survive appear as zombie companies. In order for companies to produce with added value, it is necessary to remove the understanding of the management from a one-sided and vertical structure. When companies are managed with a self-sacrificing, sharing and modest understanding, they will move into the future. It should intervene by the state with incentives and audits in the process of governance and industry digitization of companies.