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Article
Publication date: 1 December 1999

HeinzJosef Tüselmann

Against the background of the hotly‐debated issue of Germany’s attractiveness as a manufacturing location, the article assesses whether, and to what extent, the extraordinary…

1765

Abstract

Against the background of the hotly‐debated issue of Germany’s attractiveness as a manufacturing location, the article assesses whether, and to what extent, the extraordinary growth of German direct foreign investment (DFI) into Eastern and Central Europe (ECE) can be connected to a relocation of German industry caused by unfavourable location conditions on the cost side of the German economy. Reviews the German DFI position in general, analyses the particularities of the growth patterns of German DFI into ECE, critically evaluates the perceived location advantages of the region, examines the reasons underlying the DFI decisions of German companies and the subsequent types of investments in ECE, and finally assesses their economic impact on Germany. Concludes that, although the majority of German investors transferred production capacities to ECE, these were only in the minority of cases connected to unfavourable conditions on the cost side of the German location. There are strong grounds to suggest that the net effect of all German DFI into ECE on German exports, production, domestic investment and ultimately German jobs, has been positive.

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European Business Review, vol. 99 no. 6
Type: Research Article
ISSN: 0955-534X

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Article
Publication date: 1 September 2001

HeinzJosef Tüselmann

This paper discusses whether in view of the accumulated contextual pressures the evolving new German employee relations model will resemble a more flexible version of the current…

1923

Abstract

This paper discusses whether in view of the accumulated contextual pressures the evolving new German employee relations model will resemble a more flexible version of the current one or whether it will emerge as an Anglo‐Saxonised German model. It ascertains that despite the current contestation of the German model, erosion tendencies, though not negligible, are not as widespread as is often assumed and that far‐reaching reforms along neo‐liberal lines are not desirable in the German context. It is suggested that a large proportion of German employers have a vested interest in maintaining the fundamentals of the current system. A path‐dependent reform trajectory internal to the system is proposed. This paper shows that the series of reforms carried out so far has been accomplished within the parameters of the existing system, taking the form of regulated flexibility and centrally co‐ordinated decentralisation. It ascertains that the German model is more adaptable and more flexible than its reputation suggests, allowing companies to operate with more flexible collective employee relations’ responses. Yet, evidence suggests that firms are already under‐utilising the broadened framework. Nevertheless, the author predicts a continuation of the reform process and an emerging new flexible German employee relations model that remains essentially a collective one.

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International Journal of Manpower, vol. 22 no. 6
Type: Research Article
ISSN: 0143-7720

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Article
Publication date: 1 December 1996

HeinzJosef Tüselmann

Analyses the tensions between change and continuity in the German model of labour flexibility and examines why recent deregulation and decentralization measures only had a limited…

878

Abstract

Analyses the tensions between change and continuity in the German model of labour flexibility and examines why recent deregulation and decentralization measures only had a limited impact on companies’ flexibility approaches. Addresses the subsequent issues of how, and to what extent the framework for the several forms of flexibility should be broadened in the particular German context, where the institutional/regulatory environment has encouraged the widespread adoption of a diversified quality production strategy, based on high levels of functional flexibility. Concludes that a large section of German companies may already operate near an optional labour flexibility mix. Suggests system internal reforms based on regulated flexibility and centrally co‐ordinated decentralization, in order to enhance, to some extent, the framework for flexibility without undermining the underlying incentive structure for high skills/high productivity approaches to flexibility.

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Employee Relations, vol. 18 no. 6
Type: Research Article
ISSN: 0142-5455

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Article
Publication date: 1 February 2002

HeinzJosef Tüselmann, Frank McDonald and Arne Heise

Based on a representative survey of German subsidiaries in the UK, their parent companies and a comparative analysis to the Workplace Employee Relations Survey 1998, the article…

4299

Abstract

Based on a representative survey of German subsidiaries in the UK, their parent companies and a comparative analysis to the Workplace Employee Relations Survey 1998, the article examines the impact of nationality of ownership on employee relations (ER) in German multinational companies (MNCs) operating in an Anglo‐Saxon setting. It also assesses whether in light of heightened international competition and the problems in the German ER model, there has been a weakening of the home country effect over time. The study finds little evidence of a home country effect in relation to ER structures but reveals a pronounced country‐of‐origin effect in the ER approach and style. There is also evidence that German MNCs have responded to the globalisation pressures of the 1990s by a heightened emphasis on the country‐of‐origin collective approach in their UK subsidiaries, whilst at the same time developing comprehensive direct human resource management employee involvement schemes to complement, rather than substitute collective ER.

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Personnel Review, vol. 31 no. 1
Type: Research Article
ISSN: 0048-3486

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Article
Publication date: 1 February 1996

HeinzJosef Tüselmann

Government and employers’ sources frequently emphasize that companies located in western Germany have traditionally been circumscribed in their pursuit of flexibility in staffing…

1331

Abstract

Government and employers’ sources frequently emphasize that companies located in western Germany have traditionally been circumscribed in their pursuit of flexibility in staffing, working time arrangements and pay, due to the particular configuration of the German industrial relations system and labour market regulations. Examines to what extent recent deregulation and decentralization measures have actually enhanced the environment for greater labour flexibility. Then considers whether this has led to higher degrees of labour flexibility at the company level. The analysis of a number of key flexibility indicators reveals that, despite some significant broadening of the scope for greater labour flexibility since the late 1980s, companies seem, in general, not to have greatly altered their flexibility mix. In the light of the relatively high degree of functional flexibility in German firms, the pay‐offs from enhancing other forms of flexibility may be considered to be low.

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Employee Relations, vol. 18 no. 1
Type: Research Article
ISSN: 0142-5455

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Article
Publication date: 25 September 2007

Matthew M.C. Allen, HeinzJosef Tüselmann, Hamed El‐Sa'id and Paul Windrum

This paper aims to map some of the diversity in employee relations in Germany that is overlooked, first, within assessments of the German labour market that focus on the national…

806

Abstract

Purpose

This paper aims to map some of the diversity in employee relations in Germany that is overlooked, first, within assessments of the German labour market that focus on the national level and second, within separate studies in this area that emphasize attempts by employers to circumvent important institutions.

Design/methodology/approach

The research adopts a quantitative approach to examine data for German manufacturing and service sectors on both the spread of industry‐wide collective agreements and the extent to which workers are paid wage rates that are higher than those set out in those agreements. It also assesses the prevalence of profit sharing and employee share ownership schemes.

Findings

Industry‐wide collective agreements are not the burden that they are often portrayed. Actual wage rates and the prevalence of profit sharing and ESOSs make German workplaces more heterogeneous than critics and advocates of the German economic model posit.

Research limitations/implications

The data are limited to Germany; however, Germany occupies a prominent position, not just within much of the employment relations literature, but also in terms of economic output. The research is also limited by an inability to provide evidence on workplaces that undercut sectoral collective agreements and to disaggregate the data further by sector and firm size/location.

Originality/value

The paper provides a counterpoint to the portrayals of employee relations in Germany that often present a homogeneous picture of those relations. For the first time, data on the spread of profit sharing and employee share ownership schemes in German workplaces at the sectoral level are provided.

Details

Personnel Review, vol. 36 no. 6
Type: Research Article
ISSN: 0048-3486

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Article
Publication date: 14 August 2009

Matthew Allen and HeinzJosef Tüselmann

The purpose of this paper is to set out and justify a broader, systemic typology that encompasses, and is built around, the notion of voice. This leads to the development of a…

2487

Abstract

Purpose

The purpose of this paper is to set out and justify a broader, systemic typology that encompasses, and is built around, the notion of voice. This leads to the development of a number of insights that can result in the generation and testing of more accurate hypotheses on the links between voice mechanisms and workplace outcomes.

Design/methodology/approach

Drawing on different aspects of the concept of “power” and arguing that these are central to the notion of “voice”, the paper illustrates how “exit”, “loyalty” and “neglect” are also underpinned by power. A corollary of this is that these other concepts should routinely be included in studies of the links among voice and workplace outcomes.

Findings

The paper develops hypotheses that can enhance the understanding of the likely impact of voice policies on employees' attitudes and behaviour as well as on firm performance.

Practical implications

The hypotheses suggest that, if employees perceive voice mechanisms in a negative way, they may respond in a variety of ways that can have a detrimental effect on firm performance. Understanding these different responses and the likely reasons for them can lead to more appropriate policy responses by managers.

Originality/value

The paper specifies the conditions under which relationships between voice, exit, loyalty and neglect will affect workplace outcomes in greater detail. This leads to a re‐examination of factors that should be included in empirical assessments. Research findings may need to be re‐evaluated as a result.

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Employee Relations, vol. 31 no. 5
Type: Research Article
ISSN: 0142-5455

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Article
Publication date: 19 August 2011

Frank McDonald, Heinz Josef Tüselmann, Svitlana Voronkova and Sougand Golesorkhi

The purpose of this paper is to explore the relationships between the strategic development of subsidiaries and the likelihood of subsidiaries exporting on an intra‐regional basis…

704

Abstract

Purpose

The purpose of this paper is to explore the relationships between the strategic development of subsidiaries and the likelihood of subsidiaries exporting on an intra‐regional basis to European markets.

Design/methodology/approach

The paper defines the strategic development of subsidiaries as increases in autonomy, embeddedness in host locations and use of networks and host country sourcing. The location of subsidiaries in industrial clusters is also considered. Use is made of multinomial probit analysis of a survey of 391 UK‐based subsidiaries to identify the relationships between the strategic development of subsidiaries and supplying European markets.

Findings

The study finds some evidence that there are links between increasing networks and supplying European markets, but there is no evidence that developing host country sourcing is associated with European supply. Location in an industrial cluster is consistently associated with supplying European markets, and autonomy also appears to be closely associated with supplying European markets.

Research limitations/implications

Extension of the research is required to other regional trade blocs such as Mercosur and North American Free Trade Agreement. The role of networks and the links to location in industrial clusters require further exploration, and future research needs to include the services and knowledge‐intensive sectors.

Originality/value

The paper adds to the understanding of subsidiary development in the context of intra‐regional trading and thereby expands the literature on the regional strategy of multinationals. It highlights the importance of different types of autonomy for encouraging intra‐regional trade by foreign‐owned subsidiaries, and the central role of location in industrial clusters.

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Multinational Business Review, vol. 19 no. 3
Type: Research Article
ISSN: 1525-383X

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Article
Publication date: 1 October 1995

HeinzJosef Tüselmann

Against the background of intensified competition for companylocations, hotly debates Germany′s position as an internationalmanufacturing base. Aims to identify how far concerns…

1048

Abstract

Against the background of intensified competition for company locations, hotly debates Germany′s position as an international manufacturing base. Aims to identify how far concerns about Germany′s location quality are justified. After examining German direct foreign investment (DFI) developments as an indicator for location quality, analyses important underlying variables, which actually determine the quality of location. The DFI position compares unfavourably with those of other major economies. The German position has deteriorated further since the early 1990s. The eastern region′s location quality seemed to be even poorer than that of the western region. The subsequent comparative analysis of quantifiable cost and burden factors and qualitative factors revealed that, on balance, the relative location weaknesses outweighed the relative strengths in both German regions. Grave disadvantages were disclosed in eastern Germany. A reliable prognosis concerning Germany′s future location quality could not be made, since it is too early to predict the net effect of recent changes of certain location factors.

Details

European Business Review, vol. 95 no. 5
Type: Research Article
ISSN: 0955-534X

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Article
Publication date: 1 September 2001

Thomas Lange, Geoff Pugh and Lothar Funk

This paper summarises the institutional arrangements and prerequisites for a new social partnership, necessary for the successful completion of labour market reform in western…

1079

Abstract

This paper summarises the institutional arrangements and prerequisites for a new social partnership, necessary for the successful completion of labour market reform in western Germany. It does this by drawing on key policies and proposals highlighted and explored in the papers of this special issue. The paper elaborates further on these issues by outlining the importance of the labour market and its institutions in the German social market economy before turning to the case for reform. The paper addresses both micro and macroeconomic themes, including international experiences of labour market reform, employment and social policies, insider‐outsider and institutionally determined unemployment, the German system of collective bargaining and the importance of tripartite corporatist agreements. The paper concludes that reform in the German labour market should proceed through rather than against the existing institutions of social partnership, possibly with a new role for government in strengthening incentives for both unions and employers to act in a socially responsible way.

Details

International Journal of Manpower, vol. 22 no. 6
Type: Research Article
ISSN: 0143-7720

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