Learning from America? Knowledge Flows and Industrial Practices of German Firms in North America

According to conventional wisdom, industrial practices in the advanced economies are becoming more alike as the forces of globalization strengthen and spread. Owing to the deep resources, increasing connectedness, and sophistication of large firms, corporate spaces of learning are now global in scope. Over time, these processes will spell the demise of distinctive national industrial models as global learning erases local variation. This article presents a critical assessment of such claims, based on the study of industrial practices in German firms with manufacturing plants in three regions of North America. The study analyzes workplace organization, employment relations, the use of technology, and associative interaction within the region. It also examines the mechanisms for the transfer of knowledge between German and North American operations and the extent to which such transfers have been successful. Its overriding conclusion is that the progress of “strong convergence” processes has been far more limited than conventional wisdom would suggest. At least in the world of manufacturing, lessons learned in North America have not had a major impact on industrial practices in Germany.