Christel Lane

The Social Constitution of Trust: Supplier Relations in Britain and Germany

Trust is analysed as a means to reduce uncertainty and risk in vertical inter-firm relationships. Both theoretically and with reference to empirical comparative research (Britain and Germany), it is shown that trust-based relations between buyer and supplier firms rarely evolve spontaneously on the level of individual interaction but are highly dependent on the existence of stable legal, political and social institutions.

Capitalist diversity and diversity within capitalism

Abstract At the heart of debates around internal diversity within specific national contexts lie the questions of social action and the relative impact of institutional concentrations at spatial, industrial and specific hierarchical levels. Internal diversity represents the product of specific historical legacies and the uneven nature of change, the effects of transnational players and regulation, the operation of complementarity, and of regional and sectoral dynamics. This article introduces a range of perspectives on conceptualizing internal diversity within national manifestations of capitalism, and provides a framework for the subsequent articles that constitute this special issue.

Changes in corporate governance of German corporations: Convergence to the Anglo-American model?

This paper examines the many changes which have transformed the German system of corporate governance during the last seven odd years. It concludes that it is in the process of converging towards the Anglo-American model and that this has fundamentally affected the way strategic decisions are made in firms. Convergence is not seen as a functional necessity, nor is it viewed as inevitable. The paper offers both a theoretical exploration of institutional and system transformation and an empirical study which substantiates the theoretical position taken with evidence about recent trends in capital markets, banks, government and firms. Empirical evidence from the pharmaceutical/chemical industry is supplemented by data on firms in other sectors, including the financial sector. The theoretical examination of institutional change focuses on the notions of system logic, institutional complementarity, functional conversion and hybridisation. It examines both external sources of change and internal powerful actors who promote the process of transformation. The notions of hybridisation of the German business system, as well as claims about functional conversion and the evolution of a new complementarity between institutions, are rejected in favour of a trend towards convergence. The transformation in capital markets and the rise to dominance of the notion of shareholder value is particularly affecting large international and quoted firms, but is gradually spreading also to other parts of the economy. This transformation is affecting labour and industrial relations in negative ways, as well as posing a threat to the German production model of diversified quality production.

European companies between globalization and localization: a comparison of internationalization strategies of British and German MNCs

This paper assesses the extent of which British and German multinational companies have moved on a continuum between nationally embedded MNCs and globally oriented TNCs. Degree of national embeddedness and implantation into national economic and policy networks is held to influence the internationalization strategy of companies - the degree of FDI undertaken, the kind of competitive advantage they seek to derive from it and the way in which they combine nationally based and globally focused activities. It is shown that the different national business systems of Britain and Germany influence the responses of MNCs in their management of the tensions between pressures for globalization and established, nationally shaped business strategies and patterns of activities. In both cases, however, exaggerated claims about globalization of company activities and assets are shown to be misguided. But the paper also recognizes that some more globalized structures and strategies have begun to emerge in the second half ...

The External Sourcing of Technological Knowledge by US Pharmaceutical Companies: Strategic Goals and Inter‐organizational Relationships

This study of the organization of the discovery function by large US pharmaceutical companies (LPCs) examines an important knowledge acquisition strategy—external sourcing of compounds and technologies. Through a critical examination of the “capabilities” thesis in strategic management and of the theoretical conceptualization in organization studies of innovation networks, we undertake an in‐depth qualitative analysis of the network relationships LPCs establish with biotechnology firms/public research laboratories. We additionally examine the motivations and degree of strategic intent of R&D managers involved in external knowledge sourcing. The paper identifies the tensions and contradictions in network relationships and indicates how these lead to changes in knowledge sourcing. This qualitative analysis is placed in its industry and technology context. This reveals both the pressures towards and the trends in external knowledge sourcing, as compared with in‐house discovery. Extensive interviews with US LPCs and biotechnology firms provide a rare glimpse of how some of the most important actors in global innovation networks handle a significant new innovation strategy.

Gender and the labour market in Europe: Britain, Germany and France compared

This paper has two objectives: to contrast patterns of female labour market participation in three West European societies and to develop a theoretical approach which can encompass both universal features of gender divisions in the labour market and nationally specific ones. Empirically, the focus is on the different levels and forms of labour force participation over the female life cycle, particularly on any resultant employment casualization. Consideration is also given to patterns of horizontal and vertical segregation and to pay. The differences between the three countries are explained by positing the existence of nationally specific gender profiles with a differential impact on labour market patterning along gender lines. These profiles are constructed by gender regimes at the level of the state which, in turn, are the result of political struggles and compromises of a variety of political actors. The paper utilizes European statistical data and secondary sources.

The Social Dimensions of Risk: Bank Financing of SMEs in Britain and Germany:

This paper develops a sociological perspective on the comparative study of risk in the bank financing of small and medium-sized enterprises (SME) in Britain and Germany. It combines an institutionalist analysis with Luhmanns (1993) and Douglas and Wildavskys (1982) sociological theories of risk. Drawing on these theories, it is suggested that the decision-making process is a social process in which regulative, normative and cognitive institutional effects influence the perception and management of risk. Aspects of the institutional environment which relate to the bank financing of SMEs in general and risk management in particular are examined. The paper then reviews the evidence in this field presented in the existing secondary literature in the light of the theoretical approach developed and explores how various kinds of institutional mechanisms and other environmental factors influence aspects of decision making in relation to risk. The overall conclusions relate our findings to the literature on business systems.

The Michelin-Starred Restaurant Sector as a Cultural Industry

Abstract This comparison of British and German Michelin-starred restaurants involves two countries without a historical tradition of haute cuisine but which nevertheless have made great strides in Michelin-accreditation, with Germany enjoying greater success than the UK. The paper pursues three objectives. The first is to establish why, in both countries, from the early 1980s onwards, a Michelin-starred restaurant sector gained critical mass. Second, focusing on the period of 2002–09, the paper reveals differences between the UK and Germany in the development, stability over time, and spatial and social distribution of Michelin-starred restaurants. Third, the paper explains the differences between the two countries by reference to their divergent social institutional environments, including the cultural templates embedded in them. Throughout the paper, there is a focus on how restaurateurs/chefs manage the tensions between the pursuit of artistic aspirations and business goals.

The Private Regulation of Labour Standards and Rights in the Global Clothing Industry: An Evaluation of Its Effectiveness in Two Developing Countries

This article examines the effectiveness of private transnational regulation of labour standards/rights in the clothing industry. It adopts three objectives. First, the study focuses on national states in developing countries, explaining their lack of enforcement of labour law and the suppression of labour rights. Second, the article examines the effectiveness of transnational regulatory networks (TRNs) in raising labour standards/rights in producer countries. We conclude that, in a fragmented and highly competitive global industry, existing TRNs cannot ensure labour decent standards/rights. Third, we investigate the reasons for their limited effectiveness. We empirically investigate the conditions and rights of labour in the clothing industries of China and Turkey. In the case of Turkey, we are able to explain the lack of effectiveness of TRNs by drawing on interviews with a variety of actors in firms and networks.

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.