Embedded Flexibility Strategies and Diversity within Na-tional Institutional Frameworks: How many Flexibility Profiles are in the German Model?

The varieties of capitalism approach (VoC) and the related research assume that Ger-man firms adopt an internal flexibility profile that corresponds with the national insti-tutional framework. Recent empirical studies, however, have found substantial diver-sity in realized firm-level strategies. This article investigates the actual distribution of flexibility practices in German establishments. Latent class analysis revealed four flexibility profiles, including a dual profile that combines internal and external flexi-bility as well as a low flexibility profile that is characterized by an overall low impor-tance of flexibility practices. The distribution points to significant diversity of flexibil-ity profiles within the German economy and emphasizes the role of industry and firm size as crucial factors for the externalization of flexibility and a growing dualism within the German economy.