German Industrial Strategy in Turbulence: Corporate Governance and Managerial Hierarchies in Lufthansa

This paper examines a feature of German industrial organisation, namely the patterns of supplier networks established by the automotive industry in East Germany, using Ope1 and VW in Zwickau and Eisenach as case studies. The paper argues that these networks depart from a 'regional' public policy framework developed over time in Germany, and place the risks of adjustment more directly on supplier firms, placing less emphasis on para-public institutions to accommodate change.