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Social Relationships in German SMEs: An East-West Comparison

In: Change in SMEs

Author

Listed:
  • Rudi Schmidt

Abstract

Social relationships in German firms are structurally shaped by institutions of co-determination (Mitbestimmung). This is an essential element of ‘Rhine Capitalism’ (Rheinischer Kapitalismus) or the ‘coordinated market economy’ and, as part of the societal order going beyond the economy, is not exposed to direct market influence. As far as the consistency of this system goes, the question is all the more interesting whether indirect effects on German co-determination are observable through market change, liberalization and globalization — in a certain sense as proof of the repeatedly expressed assumption of a convergence of the coordinated market economy towards the Anglo-Saxon type of capitalism. There are indeed some indications for this. A systematic overview and evaluation of the now quite extensive research on this aspect of the socioeconomic order cannot, however, be undertaken in this short contribution. I limit myself here to the analysis of selected themes of the social relationships in workplaces and examine, in particular, the influence of management on employee co-determination, works councils and unions from an East-West comparative perspective with a focus on East-German manufacturing SMEs.

Suggested Citation

  • Rudi Schmidt, 2008. "Social Relationships in German SMEs: An East-West Comparison," Palgrave Macmillan Books, in: Katharina Bluhm & Rudi Schmidt (ed.), Change in SMEs, chapter 16, pages 274-289, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-22778-1_16
    DOI: 10.1057/9780230227781_16
    as

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