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Embedded Flexibility Strategies and Diversity within Na-tional Institutional Frameworks: How many Flexibility Profiles are in the German Model?

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  • Kirchner, Stefan

Abstract

The varieties of capitalism approach (VoC) and the related research assume that Ger-man firms adopt an internal flexibility profile that corresponds with the national insti-tutional framework. Recent empirical studies, however, have found substantial diver-sity in realized firm-level strategies. This article investigates the actual distribution of flexibility practices in German establishments. Latent class analysis revealed four flexibility profiles, including a dual profile that combines internal and external flexi-bility as well as a low flexibility profile that is characterized by an overall low impor-tance of flexibility practices. The distribution points to significant diversity of flexibil-ity profiles within the German economy and emphasizes the role of industry and firm size as crucial factors for the externalization of flexibility and a growing dualism within the German economy.

Suggested Citation

  • Kirchner, Stefan, 2013. "Embedded Flexibility Strategies and Diversity within Na-tional Institutional Frameworks: How many Flexibility Profiles are in the German Model?," management revue. Socio-economic Studies, Rainer Hampp Verlag, vol. 24(1), pages 12-29.
  • Handle: RePEc:rai:mamere:1861-9908_mrev_2013_1_kirchner
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    Keywords

    German model; internal and external flexibility; temporary agency work; outsourcing; latent class analysis;

    JEL classification:

    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • P10 - Economic Systems - - Capitalist Systems - - - General

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