The translation of shareholder value in the german business system: a comparative study of DaimlerChrysler and Volkswagen AG

This article examines the introduction of shareholder value in the German business system. Its main argument is that the idea of shareholder value has been introduced and adopted in different ways by German firms. Divergences are identified both at the discursive level and at the level of organisational structures and practices of corporate governance. They can be understood by applying translation theory to the adoption process. The main tenet of translation theory is that ideas are constantly being modified when they enter new contexts, mainly due to the diversity of actors involved in the process of translation. Translation theory therefore goes beyond traditional diffusion studies, which tend to assume a linear and homogeneous transmission of ideas. The analysis of two German firms, DaimlerChrysler and Volkswagen AG, lends support to the explanatory potency of translation theory.