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19th-century German electrical industry’s creative entrepreneurs - Werner von Siemens’ corporate spirit and management style -

This paper is to search the entrepreneurship and management of Mr. Werner von Siemens who is the founder of Siemens AG as one of the creative entrepreneur in the electric industry of German in nineteen century. His entrepreneurship to integrate study and business in the synthetical view appears in the scientific and technical use of electricity. In addition, what to be considered together is the fact that Siemens limited his business into only the electrical engineering and was involved in almost every area in this electrical engineering, expanding his business into the global market. With active investment and development, he secured the competitiveness in a position of advantage in technology. Due to his entrepreneurship like this, the electrical industry of German together with the chemical industry came up as the leading role of industrialization in 1870. With his entrepreneurship and global management, the electrical industry in German could have competitiveness in the global market. This successfully led the image of products with “Made in Germany” to the product with high efficiency and quality. Especially, his entrepreneurship rushing into the Europe market like Russia and United Kingdom with direct sales, network establishment, and winning contract management, all of which any business men of the time had never imagined, was the pioneer. Furthermore, aiming for the global management, he internally applied his strict patriarchal corporate management style to his employee. As the result, he secured the sense of loyalty and unity from his employee and introduced the voluntary welfare system to prevent his employees from changing their jobs. For example, since 1858 the bonus has made to the paid workers and since 1866 the fixed amount in the net profit has been allocated for the bonus for the workers. The various performance-related pay was enforced and, especially for all employees, the system of pension and insurance for widow and orphan were kept and maintained, which influenced the national welfare policy as well as other companies. This welfare system has been the key part to acknowledge Siemens’ entrepreneurship well. To sum up, Mr. Werner von Siemens is the creative entrepreneur who secured the corporate competitiveness of technology by combining study and business and also put emphasis on development of the global market, based on his family centered patriarchal management. He also upgraded this company, Siemens AG as the leader of the global (as well as domestic) electric industry by providing his employees the step-ahead corporate welfare system to keep them.