Change in SMEs Towards a New European Capitalism? Edited by Katharina Bluhm and Rudi Schmidt ChangeinSMEs AlsobyKatharinaBluhm ZWISCHENMARKTUNDPOLITIK:ProblemeundPraxisvonUnternehmensko- operationinderTransitionsökonomie EXPERIMENTIERFELDOSTMITTELEUROPA?Deutsche UnternehmeninPolenundderTschechischenRepublik. AlsobyRudiSchmidt BETRIEBLICHES INTERESSENHANDELN. Vol. 1 Zur politischen Kultur der Aus- tauschbeziehungenzwischenManagementundBetriebsratinderwestdeutschen Industrie(withA.Bosch,E.Ellguth,R.Trinczek) BETRIEBLICHES INTERESSENHANDELN. Vol. 2 Zur politischen Kultur der Aus- tauschbeziehungen zwischen Management und Betriebsrat in der ostdeutschen Industrie(withI.Artus,R.Liebold,K.Lohretal.) MANAGEMENTSOZIOLOGIE.Themen,Desiderate,Perspektiven(edsSchmidt,R. etal.) Change in SMEs Towards a New European Capitalism? Editedby KatharinaBluhm AssistantProfessor,Friedrich-Schiller-UniversityJena, Germany and RudiSchmidt EmeritusProfessor,Friedrich-Schiller-UniversityJena,Germany Selectionandeditorialmatter©KatharinaBluhmandRudi Schmidt2008 Chapters©theirauthors2008 Softcover reprint of the hardcover 1st edition 2008 978-0-230-51589-5 Allrightsreserved.Noreproduction,copyortransmissionof thispublicationmaybemadewithoutwrittenpermission. Noparagraphofthispublicationmaybereproduced,copiedor transmittedsavewithwrittenpermissionorinaccordancewith theprovisionsoftheCopyright,DesignsandPatentsAct1988, orunderthetermsofanylicencepermittinglimitedcopying issuedbytheCopyrightLicensingAgency,90Tottenham CourtRoad,LondonW1T4LP. Anypersonwhodoesanyunauthorizedactinrelationtothis publicationmaybeliabletocriminalprosecutionandcivil claimsfordamages. Theauthorshaveassertedtheirrightstobeidentifiedasthe authorsofthisworkinaccordancewiththeCopyright, DesignsandPatentsAct1988. Firstpublished2008by PALGRAVEMACMILLAN Houndmills,Basingstoke,HampshireRG216XSand 175FifthAvenue,NewYork,N.Y.10010 Companiesandrepresentativesthroughouttheworld PALGRAVEMACMILLANistheglobalacademicimprintofthe PalgraveMacmillandivisionofSt.Martin’sPress,LLCandof PalgraveMacmillanLtd.Macmillan®isaregisteredtrademark intheUnitedStates,UnitedKingdomandothercountries. PalgraveisaregisteredtrademarkintheEuropeanUnion andothercountries. ISBN 978-1-349-35416-0 ISBN 978-0-230-22778-1 (eBook) DOI 10.1057/9780230227781 Thisbookisprintedonpapersuitableforrecyclingandmade fromfullymanagedandsustainedforestsources.Logging, pulpingandmanufacturingprocessesareexpectedtoconform totheenvironmentalregulationsofthecountryoforigin. AcataloguerecordforthisbookisavailablefromtheBritishLibrary. LibraryofCongressCataloging-in-PublicationData ChangeinSMEs:towardsanewEuropeancapitalism?/editedby KatharinaBluhmandRudiSchmidt. p.cm. BasedonaconferenceoftheCollaborativeResearchCenter580, GermanResearchAssociationthattookplaceattheFriedrich– Schiller–UniversityofJenain2007. Includesbibliographicalreferencesandindex. 1. Smallbusiness—Europe—Management—Congresses. 2. Small business—Europe—Finance—Congresses. 3. Capitalism—Europe— Congresses. I.Bluhm,Katharina. II.Schmidt,Rudi. HD62.7.C4522008 338.6’42094—dc22 2008016154 10 9 8 7 6 5 4 3 2 1 17 16 15 14 13 12 11 10 09 08 Contents ListofTables vii ListofFigures viii Acknowledgements ix NotesontheContributors x 1. WhyShouldtheVarietiesLiteratureGrantSmaller FirmsMoreAttention?AnIntroduction 1 KatharinaBluhmandRudiSchmidt PartI ChangingFinancing,Ownershipand FirmManagement 15 2. ThePowerofFinancialMarkets WhatDoesthat MeanandHowDoesitWorkforDifferentCategories ofCompanies? 17 JürgenKädtlerandMichaelFaust 3. ChangewithinTraditionalChannels:GermanSMEs, theRestructuringoftheBankingSector,andthe GrowingShareholder-ValueOrientation 39 KatharinaBluhmandBerndMartens 4. CorporateFinancing,ManagementandOrganization inSMEs:AnAnglo-GermanComparison 58 MikeGeppertandBerndMartens 5. StakeholderorShareholderOrientation?Entrepreneurial CareersandValuePreferencesofEntrepreneursin EastGermany 77 RainhartLang 6. SMEsinFrance:NewPerspectivesandNewGeneration ofSmall-BusinessOwners 99 AlainFayolleandSalmaFattoum v vi Contents 7. FamilyBusinessandFamilyChange:TheEndof Patriarchalism 118 HermannKotthoff PartII SMEsinGlobalizedProductionNetworks 133 8. SMEsintheGlobalEconomy:AComparisonofthe GlobalProductionNetworksofGermanandBritish ClothingFirms 135 ChristelLaneandJocelynProbert 9. FlexibilityandFormalization:RethinkingSpaceand GovernanceinCorporationsandManufacturingRegions 152 GaryHerrigel 10. InnovationStrategiesofNon-Research-IntensiveSMEs 171 HartmutHirsch-Kreinsen 11. Fromthe‘WildWest’TowardsEurope:Changeand ChallengesinSMEsinPoland 185 TadeuszBorkowskiandAleksanderMarcinkowski PartIII LabourRelationsinChange 201 12. StructuralChangesandNewFormsofSocial Regulationinthe‘ThirdItaly’ theCaseofthe Emilia-RomagnaRegion 203 VolkerTelljohann 13. PolishSMEsataCrossroads:MarketStrategiesand LabourRelationsinGlobalCompetition 228 Ralph-ElmarLungwitz,ManfredWannöffeland YvonneRückert 14. UnravellingRegulation:HowProductionRelocation totheEastImpactstheGermanModelofLabour RelationsattheWorkplace 243 MichaelFichter 15. IrregularFormsofEmployeeInterestRepresentation inSMEs:AGerman-FrenchComparison 258 IngridArtus 16. SocialRelationshipsinGermanSMEs:AnEast-West Comparison 274 RudiSchmidt Index 291 List of Tables Table1.1 Yearofimplementationaccordingtocompany’ssize 9 Table3.1 ResultoftwologisticregressionswiththeGerman 2002and2005datasets 47 Table3.2 Distributionofsuccessionplannedorcarriedoutin percent 50 Table4.1 Distributionsofthethreeabove-mentionedsurveys 61 Table5.1 CSRvaluepreferencesincriticaldecisions 87 Table5.2 CSRvaluepreferencesincriticaldecisionclusters 88 Table5.3 Differencesinleadershipdimensionsbetween owner-managersandemployedmanagers 92 Table6.1 DistributionofFrenchcompanies(1January2005) bynumberofemployeesandactivitysector 101 Table8.1 StructureoftheGermanandUKclothingindustries, 2001–02 138 Table13.1 TheexistenceofTUorganizationsinfirmsandthe enforcementofworkers’rights(inpercent) 231 Table15.1 Germancompanieswithoutaworkscouncil accordingtocompanysize,2003(inpercent) 262 Table15.2 Germanemployeesinworkplaceswithouta workscouncilaccordingtocompanysize,2003 (inpercent) 262 Table15.3 Frenchcompaniesandemployeeswithoutany workplacestructuresofemployeerepresentation (IRPs),accordingtocompanysize,1998–99 (inpercent) 263 Table15.4 Frenchcompaniesandworkerswiththecomplete systemofworkplaceinterest-representation 263 Table16.1 EnterpriseswithworkscouncilinEast-and West-GermanmanufacturingSMEs 277 Table16.2 Assessmentofworkerco-determinationand unioninfluence 279 Table16.3 Management’srelationshiptotheworkscouncil 280 vii List of Figures Figure5.1 Valuepreferencesofowner-managersandemployed managersincriticalmanagementdecisions 85 Figure5.2 ValuepreferencesofallCEOsandimmediate subordinatesincriticalmanagementdecisions 86 Figure6.1 Possiblepaths 110 Figure6.2 Positioningofthevarioustypesofentrepreneurs 113 Figure8.1 Stepsintheclothingvaluechain 139 Figure13.1 Factorscrucialforcompetitivenessaccordingto entrepreneurs(2003–2005) 233 viii Acknowledgements This book is the result of a conference of the Collaborative Research Center 580 – a chapter of the German Research Foundation (Deutsche Forschungsgemeinschaft or DFG) – that took place at the Friedrich- Schiller-University of Jena in 2007. We would like to thank the DFG and the state of Thuringia for their financial assistance as well as the Friedrich-Schiller-University for their logistical support. Many thanks alsotoHeatherFuchsandFranzZurbrugg,whowereatremendoushelp duringtheeditingprocess. ix