When Lean Production Meets The ‘German Model’

Abstract

Lean production represents a major challenge for German industries' distinctive model of Diversified Quality Production (DQP). This study looks at how German manufacturers are responding to the challenge, in a particular sector, namely pump manufacturing, where Germany has long been dominant. The study compares 18 German pump manufacturers with a closely matched set of US firms, focusing on product and process innovations. Variations in the rate and success of innovations are traced to differences in two key factors: national institutions and product markets.

^*The authors would like to thank the German Marshall Fund and the US Department of Labor that provided the funding for this research and the many pump companies that gave us time and access to data. They would also like to thank Pepper Culpepper, Arndt Sorge, David Soskice and Jay Tate for comments that helped improve the paper.

^*The authors would like to thank the German Marshall Fund and the US Department of Labor that provided the funding for this research and the many pump companies that gave us time and access to data. They would also like to thank Pepper Culpepper, Arndt Sorge, David Soskice and Jay Tate for comments that helped improve the paper.

Notes

^*The authors would like to thank the German Marshall Fund and the US Department of Labor that provided the funding for this research and the many pump companies that gave us time and access to data. They would also like to thank Pepper Culpepper, Arndt Sorge, David Soskice and Jay Tate for comments that helped improve the paper.