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The reorganization of European industries proceeds on the basis of the pre-existing economic, social and political structures in this particular region. Even in times of an increasingly global economy, the strategies of European companies have to respond to the specifics of European industries and their production models with their virtues and weaknesses. These characteristics include sector composition and the division of labor between large, small and medium sized enterprises as well as manufacturing strategies and patterns of work organization. The shape of European production models is interrelated to the specifics of European national institutional systems following the general assumption that company strategies and practices are shaped by a set of institutional conditions in which these company activities are embedded. As has been shown by research on “capitalist diversity, ” (see Berger et al. 2001) there are national or regional institutional settings defining actors and due courses of action, imprinting industries, company structures, and work-force capabilities in a peculiar manner and thereby over time putting nations or regions in specific places within the international division of labor. These institutional arrangements are characterized by a specific momentum and a tendency to persist over time, not only because of comparative advantages within the division of labor at a given time, creating positive feed-back loops, but also due to sunk costs, structural inertia and cognitive lock-ins. In a re-cursive model linking institutions and collective or individual action, agency, enabled and constrained by institutions, produces and reproduces the very
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