European capitalism: Between freedom and social justice

Conclusion

We therefore end up with the general conclusion that the Anglo-Saxon type of corporation, even though it achieves a remarkably better profitability than the Continental firm, has a lesser degree of value productivity and also a lower growth rate. Consequently, its average size in terms of total net value added is now less than that of the Continental firm and it is losing out in all sectors of inductry. The latter tendency is quite marked in mass production types of industry and in banking, but less so where product differentiation by means of reputation, of advertising and R & D spendings are important such as is the case in business-services, foods and drinks, pharmaceuticals, and aerospace. The strong merger intensity and the free market for corporate control which exist in Anglo-Saxon corporate capitalism are obviously not a sufficient counterweight to the high value productivity based on the social coherence which is the distinguishing characteric of the Continental (and Japanese) type of capitalist enterprise. Clearly, corporate structure guides performance into different directions and, in the long run, changes the corporate landscape.