ABSTRACT
This chapter reconstructs Telefunken's relationships with Japanese companies from the electrical and consumer electronics industry between the 1920s and the 1970s. Being one of Japan's leading industries, this branch was emblematic of the first catch-up case of the Great Convergence during this period. The article argues that Telefunken anticipated the increasing competitiveness of Japanese electronics as early as the 1920s and reacted to this challenge by cooperating with Japanese companies. This security strategy was based on various intentions, which were weighted differently during the period under investigation. Telefunken cooperated to have control, to maximize profits in the relationships, and to learn from the Japanese companies. However, this security strategy failed. Telefunken lost the competition with the Japanese companies in the 1970s. Until then, neither Telefunken nor the Japanese companies achieved the success their cooperation was meant for. This case study thus provides a business history perspective on the Great Convergence and outlines the specific changes in the relationship between Telefunken and the Japanese economy over a transformative period of 50 years.
