The effects of Economic Historical developments and Cultural Dimensions on the Forming of the Modern German Machinery Industry

  • Tien Dung Nguyen

Student thesis: Bachelor's Thesis

Abstract

This thesis will investigate the complex interrelationship between historical developments and cultural dimensions and modern German machinery. To this end, the project combines the two theoretical strains of thought by Path Dependency Theory and Hofstede's Cultural Dimensions Theory into one analysis to understand the influence of the historical trajectory and cultural values of Germany upon the industry. The thesis gives an appropriate outline of how these pitiful events, such as the unification of Germany, the two World Wars, the post-World War II economic recovery, and the reunification of East and West Germany, actually did impact industrial policy, technological development, and organizational strategy in the German machinery industry. Additionally, the thesis explores cultural reasons, such as high dimensions of Individualism, low dimensions of Power Distance, high Long – term Orientation in Germany, which fostered a special innovative environment together with quality and precision in manufacturing. In this thesis, the research strategy is to use a mixed – method approach with qualitative analysis. Historical document analysis traced the development of the industry, while case studies of major German firms, like Siemens and Bosch, described the adaptive mechanisms of their strategic moves within their respective stages of history. Assessments done on the cultural impact, using Hofstede's Cultural Dimensions Theory, reveal how industrial practices and success are influenced by cultural values. This thesis also included interviewing industry experts for collecting qualitative data regarding the cultural dynamics existing within the industry, which was supplemented with quantitative data from economic indicators: GDP growth rates, industrial production, and investment trends. Thus, integrating these methods, a more holistic understanding of the factors is offered under the drivers for the German machinery industry's success, which are underlined from historical legacies and cultural frameworks affecting global competitiveness up to the present time.
Date of Award2024
Original languageEnglish
SupervisorMonika Pleschinger (Supervisor)

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