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Automobile Supplier Network Organisation in East Germany: A Challenge to the German Model of Industrial Organisation

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  • Steven Casper

Abstract

Lufthansa's system of corporate governance, based on consensus decision-making and company guidance at the Vorstand(Executive Board) level, was institutionally adapted to the airline industry environment as long as technological change was essentially continuous, but placed Lufthansa at a comparative disadvantage in the 1980s when regulatory and technical changes in the industry required more radical shifts in the strategy and organisation of the company. After a failed attempt to develop the aviation equivalent of 'diversified quality production' a la BMW, Lufthansa's survival in the 1990s seemingly hinged on its ability to find alternative routes to Vorstand-level control of its operations. These developments are analysed using a theory of 'comparative institutional advantage'.

Suggested Citation

  • Steven Casper, 1997. "Automobile Supplier Network Organisation in East Germany: A Challenge to the German Model of Industrial Organisation," Industry and Innovation, Taylor & Francis Journals, vol. 4(1), pages 97-113.
    • Handle: RePEc:taf:indinn:v:4:y:1997:i:1:p:97-113
    DOI: 10.1080/13662719700000006
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    References listed on IDEAS

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    1. Vitols, Sigurt, 1995. "German banks and the modernization of the small firm sector: long-term finance in comparative perspective," Discussion Papers, Research Unit: Economic Change and Employment FS I 95-309, WZB Berlin Social Science Center.
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    Cited by:

    1. Siebert, Horst & Stolpe, Michael, 2001. "Technology and economic performance in the German economy," Kiel Working Papers 1035, Kiel Institute for the World Economy (IfW Kiel).

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