The secret of new growth in old German ‘Mittelstand’ companies

Abstract

The authors have selected five typical ‘Mittelstand’ or small- and medium-sized companies in Germany with export activities, which however, have been successful in transforming themselves from traditional organisations and sluggish performers into more entrepreneurial, successful value-creating firms. They seek to understand the nature of the new model evolving within these entrepreneurial ‘Mittelstand’ companies and to document the nature of the transformation required to implement the new model. The five successful companies hold the key to many lessons which German ‘Mittelstand’ companies would be wise to heed. For example, an emphasis on applying technology to improving customer value, not better product technolog.. New ideas concerning the focus of the company and better knowledge-management to drive more efficient decision-making are also critical. The authors spell out in some detail what changes are essential and how best they can be introduced.