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Technological innovation, globalization, and varieties of capitalism: the case of Siemens AG as example for contingent institutional adaptation

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  • Fritsch Stefan

    (Assistant Professor of International Relations and Comparative Government, Department of Political Science, Bowling Green State University, 116 Williams Hall, Bowling Green, OH 43403, USA)

Abstract

Contemporary discussions in the comparative political economy of innovation revolve specifically around the question of globalization’s impact on the observable diversity of innovation patterns, institutionally grounded comparative advantages of firms and countries as well as their evolution over time. The paper develops the concept of “contingent institutional adaptation” to trace institutional evolution at the firm level. It advances the idea that contingent adaptation can cause institutional hybridization, an evolutionary path defined by change and continuity, thereby offering a more nuanced concept of institutional evolution over time. In a historic single-case study the paper investigates the German Siemens AG and its efforts to remain on the cutting-edge of major information and communication technologies in two time periods (1847–1914; 1989–2013), both marked by institutional adaptations resulting in hybridization. Ultimately, institutional hybridization led to Siemens’ retreat from all information and communication technology sectors.

Suggested Citation

  • Fritsch Stefan, 2015. "Technological innovation, globalization, and varieties of capitalism: the case of Siemens AG as example for contingent institutional adaptation," Business and Politics, De Gruyter, vol. 17(1), pages 125-159, April.
    • Handle: RePEc:bpj:buspol:v:17:y:2015:i:1:p:125-159:n:3
    DOI: 10.1515/bap-2014-0020
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