The institutional framework for Car Manufacturers in India

Type de publication:

Seminar Presentation


Gerpisa colloquium, Paris (2013)


India, market strategies, Varieties of Capitalism


Christiane Heimann & Nilesh Waman
Technische Universität Kaiserslautern
FB Sozialwissenschaften
FG Soziologie, Geb. 57 / Zi. 581
67653 Kaiserslautern
Tel.: +49 (0)631 205 4612

The institutional framework for Car Manufacturers in India

This contribution focuses on the institutional framework German Car Companies have to cope with when establishing a subsidiary branch in India. The emerging market of India is of increasing importance for multinational companies because of its constant economic growth and the mass of prospective clients. Nevertheless if entering the Indian Market, the institutional framework German Car Manufacturers face in India differs a lot from the general conditions they are used to. The specific characteristics of the sales market, infrastructure, labour market, employment law, education and training, management, and culture seem to be problematic for the German Car Manufacturers. Therefore the analysis of the structural conditions from a macro-sociological point of view offers new insights. In order to analyse the institutional framework the “Varieties of Capitalism Approach” (Hall/Soskice 2001) is applied, which focuses on the institutional settings of the financial system, industrial relations, education and training system, and intercompany relations. Originally developed to analyse institutional arrangements of industrialised countries, the approach is currently extended to emerging nations, as in Latin America (Schneider 2009), China (Popov 2010) and India (Mazumdar 2011). The recently developed institutional settings in India combine liberal market principles and national protectionism, which do not only affect the macroeconomic performance but also the success of the market strategies of German Car Manufacturers in India. So the results generated by qualitative empirical methods such as literature review and interviews can be helpful both for the further development of the “VoC-Approach” as well as for Car Companies preparing the establishment of a subsidiary branch and for those facing a problematic situation in India.

Hall, Peter A. and David Soskice (2001): Varieties of Capitalism: The Institutional Foundations of Comparative Advantage. Oxford: Oxford University Press.
Mazumdar, Surajit (2011): Continuity and Change in Indian Capitalism. MPRA Paper 38907, Munich: University Library of Munich.
Popov, Vladimir (2010): Is Chinese variety of capitalism really unique? MPRA Paper 28109, Munich: University Library of Munich.
Schneider, Ben Ross (2009): Hierarchical Market Economies and Varieties of Capitalism in Latin America. Journal of Latin American Studies, 41, pp. 553-75.

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