Globalization but Still a Large Diversity of Productive Models and Corporate Governance Styles

Robert Boyer ; Michel Freyssenet

Professor, CEPREMAP ENS, 48 boulevard Jourdan, 75014 Paris, France, Tel: +33-1-43-13-62-56 ou 57, Fax: +33-1-43-13-62-59 robert.boyer@cepremap.cnrs.fr
Professor, GERPISA, Universite d'Evry Val d'Essonne, 4 boulevard F. Mitterand, F-91025 Evry Cedex, Tel: +33-1-69-47-70-23, Fax: +33-1-69-47-70-07 michel. freyssenet@gerpisa.univ-evry.fr

JEL Classification: F23, L16, L22, L62

Abstract

Built upon a series of international comparisons and historical retrospective analyses of the car industry, the article challenges the vision that lean production is the best productive model for the 21st century. From a theoretical standpoint, a productive model is defined by the conjunction of a profit strategy and a company governance compromise in order to make coherent product policy, productive organization and employment relationships, along with the relevance with respect the macroeconomic macro growth mode. The empirical analysis shows that at least 3 productive models co-exist: the toyotian is organised along permanent costs reduction, the hondian one is built upon innovation and flexibility, whereas the sloanian model, based upon volume and diversity, is still alive and quite efficient in the relevant European context. The prognosis is that this diversity of productive models is bound to continue, even the era of globalization and after the mega merger mania.

Keywords:

Firm organization, Productive models, Lean production, Automobile industry, Globalization, Growth modes

Acknowledgments

Prepared for “The Socio-Economic Roles of Firms and Chaebols,” The Tenth Seoul Journal of Economics International Symposium, Seoul August 29, 2002. This paper derives from the book The Productive Models, Palgrave, Mac Millan, 2002, that gives the complete presentation of the various productive models.

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