Mittelstand firms are small and medium-sized enterprises that form the backbone of the German economy. Mostly export-orientated and with high levels of productivity and quality standards, these group of firms have contributed significantly to Germany's post-war economical success. They combine strategic focus with geographic diversity, emphasize factors like customer value and closeness to customers, rely on their own technical competence and create mutual interdependence between the company and its employees. In this paper, we research the clues of this very successful model and the main causes of its competitive advantage.

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