20th Century
The merger of four major firms into the Vereinigte Stahlwerke (United Steel Works) in 1926 was modeled on the U.S. Steel corporation in the U.S. The goal was to move beyond the limitations of the old cartel system by incorporating advances simulteously inside a single corporation. The new company emphasized rationalization of management structures and modernization of the technology; it employed a multi-divisional structure and used return-on-investment as its measure of success.
By 1913 American and German exports dominated the world steel market, as Britain slipped to third place.
In machinery, iron and steel and other industries, German firms avoided cut-throat competition and instead relied on trade associations. Germany was a world leader because of its prevailing "corporatist mentality", its strong bureaucratic tradition, and the encouragement of the government. These associations regulated competition and allowed small firms to function in the shadow of much larger companies.
According to German economic historian Albrecht Ritschl, Germany was the "biggest debt transgressor of the 20th century".
Read more about this topic: Economic History Of Germany