Rhenish Capitalism: New Insights from a Business History Perspective

Rhenish capitalism is a model of capitalism characterized by a bank-centered financing system, close economic ties between banks and companies, a balance of power between shareholders and management, and a social partnership between unions and employers. The West German economy of the 1950s to 1980s is an example of this model, which contrasts with the liberal Anglo-Saxon forms of capitalism. The book argues that research on capitalism should pay more attention to change over time and puts the firm into the center of analysis. The empirical contributions uncover differences between French and German corporate governance practices, analyze legal debates and practices of corporate control, show the tension between national corporate governance and increasing internationalization, and explore the opportunities encountered by German big banks vis-à-vis their customers from big industry.

Format: Paperback / softback
Length: 176 pages
Publication date: 29 January 2024
Publisher: Taylor & Francis Ltd

Rhenish capitalism is a highly influential model of capitalism that is characterized by a bank-centered financing system, strong economic connections between banks and companies, a balance of power between shareholders and management, and a social partnership between unions and employers. This model was prevalent in the West German economy during the 1950s to 1980s, distinguishing it from the liberal Anglo-Saxon forms of capitalism. In line with recent discussions about Varieties of Capitalism, the authors argue that research on capitalism should place greater emphasis on the study of change over time. The book also aims to center its analysis around the firm, a crucial aspect that has been overlooked in previous studies.

The empirical contributions in this book shed light on the differences between French and German corporate governance practices by comparing two European automobile producers, Volkswagen and Renault. The authors analyze legal debates and practices of corporate control in post-war Germany, exploring the tension between national corporate governance and increasing internationalization. They also examine the opportunities encountered by German big banks vis-à-vis their customers from big industry. Furthermore, the chapters demonstrate that coordinating culture in the supply relationship of the German automobile industry faced challenges during the late boom period and emphasize the importance of communication processes as a basis for interest coordination in Rhenish capitalism.

The chapters in this book were originally published as a special issue of the journal Business History, highlighting the significance of this research and its contribution to the field of business history.

Weight: 453g
Dimension: 246 x 174 (mm)
ISBN-13: 9781032193175