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International joint ventures: Managing successful collaborations
not be the most critical measure of success edge-intensive environment.
PLANNING IN SPECIFIC COMPANIES SITUATIONSEASTERN EUROPE
in a knowl-
AND
SHAMA, A. Entry Strategies of US Firms to the Newly Independent States, Baltic States and Eastern European countries California Management Review 37 (3), 90-109 (Spring 1995). The findings of the study show that market entry strategies-export/import, licensing, joint venture, franmanufacturing/wholly-owned chising, consortia, subsidiary-developed and applied in the West are equally applicable to the markets of the former Soviet bloc. Market size mitigates market risk and encourages early entry. The potential risk of being absent from the Russian market could be substantial. Different entry strategies should be selected on the basis of strategic goals and as the risk/reward environment changes. Caution and strategic evolution are the key.
PLANNING IN SPECIFIC COMPANIES AND SITUATIONS-STRATEGIC ALLIANCES SHAUGHNESSY, H. International Joint Ventures: Managing Successful Collaborations Long Range Planning 28 (3), lo-17 (June 1995). International joint ventures have a practical and a moral dimension. Failures occur when there is no recognition of the management imperatives. The most important prerequisite is that the parties should share the same objectives. Ideally, an international joint venture should be supported by a partnership philosophy. Nine guidelines to improve negotiations are given. New thinking on international strategic alliances abounds. Management must, however, recognize that assumptions and techniques will be challenged. BROUTHERS, K. D. BROUTHERS, L. E. and WILKINSON, T. J. Strategic Alliances: Choose Your Partners Long Range Planning 28 (3), 18-25 (June 1995) Multinational enterprises will increasingly need to form alliances in order to have the resources to be truly globally competitive: yet the inappropriate choice of an alliance partner could turn out to be even more costly and risky than trying to go it alone. Strategic alliances are known to be risky. The first step in finding a partner with complementary skills is to undertake a thorough search. Experience, capabilities and potential for making a real contribution are Current Awareness
criteria. In the case of NUMMI, the mix of cultures, the Japanese team approach, GM’s corporate ‘anti-management’ and the unions’ approach approach were successfully combined. Goal assessment is very important; a successful alliance must be based on compatible goals. Levels of risk should be commensurate. important
BEAMISH, P. W. and INKPEN, A. C. Keeping International Joint Ventures Stable and Profitable Long Range Planning 28 (3), 26-36 (June 1995). Despite the increase in popularity, international alliances are often seen as inherently unstable. The primary problems arise from the fact of more than one parent. Instability can be caused by changes in partners’ strategic missions, in importance of the JV to the parent, in the partners’ relative bargaining power, and in increased competitive rivalry between partners. To maintain a stable relationship, the emphasis needs to be on building the relationship rather than local knowledge. Two factors influence the speed of knowledge acquisition. One is the partner’s contribution on a wide variety of topics and the other is the transparency of the local environment. Stable JVs are possible and can be profitable over a long period. RICHTER, F.-J. and VETTEL, K. Successful Joint Ventures in Japan; Transferring Knowledge Through Organizational Learning Long Range Planning 28 (3), 37-45 (June 1995). A model is developed based on case studies reflecting successful and less successful attempts by German companies to acquire the knowledge of their Japanese partners. The learning processes are set within the environmental context of the company. The first case study, Daicel Hiils Ltd, is one that may be considered ‘old-fashioned’. The Hoechst-Mitsubishi Kasei was formed following an evaluation by strategy and culture teams from both companies to evaluate the differences and to develop training procedures. In the case of Bosch, there was an awareness of all knowledge layers. The company was able to anticipate developments and react accordingly. Western companies which do not develop such an organizational knowledge risk losing competitive advantage. If they do extend their knowledge base, there is a guarantee of organizational renewal. KUKALIS, S. and JUNGEMANN,M. Strategic Planning for a Joint Venture Long Range Planning 28 (3), 46-57 (June 1995). Though joint ventures result in the creation of a new entity that is formally independent of its parents, in practice the parents can exert considerable control on the management of the joint venture. In the case study, the Thums Long Beach Company, the strategic planning process is shown to be highly complex and
PLANNING IN SPECIFIC COMPANIES SITUATIONSEASTERN EUROPE
in a knowl-
AND
SHAMA, A. Entry Strategies of US Firms to the Newly Independent States, Baltic States and Eastern European countries California Management Review 37 (3), 90-109 (Spring 1995). The findings of the study show that market entry strategies-export/import, licensing, joint venture, franmanufacturing/wholly-owned chising, consortia, subsidiary-developed and applied in the West are equally applicable to the markets of the former Soviet bloc. Market size mitigates market risk and encourages early entry. The potential risk of being absent from the Russian market could be substantial. Different entry strategies should be selected on the basis of strategic goals and as the risk/reward environment changes. Caution and strategic evolution are the key.
PLANNING IN SPECIFIC COMPANIES AND SITUATIONS-STRATEGIC ALLIANCES SHAUGHNESSY, H. International Joint Ventures: Managing Successful Collaborations Long Range Planning 28 (3), lo-17 (June 1995). International joint ventures have a practical and a moral dimension. Failures occur when there is no recognition of the management imperatives. The most important prerequisite is that the parties should share the same objectives. Ideally, an international joint venture should be supported by a partnership philosophy. Nine guidelines to improve negotiations are given. New thinking on international strategic alliances abounds. Management must, however, recognize that assumptions and techniques will be challenged. BROUTHERS, K. D. BROUTHERS, L. E. and WILKINSON, T. J. Strategic Alliances: Choose Your Partners Long Range Planning 28 (3), 18-25 (June 1995) Multinational enterprises will increasingly need to form alliances in order to have the resources to be truly globally competitive: yet the inappropriate choice of an alliance partner could turn out to be even more costly and risky than trying to go it alone. Strategic alliances are known to be risky. The first step in finding a partner with complementary skills is to undertake a thorough search. Experience, capabilities and potential for making a real contribution are Current Awareness
criteria. In the case of NUMMI, the mix of cultures, the Japanese team approach, GM’s corporate ‘anti-management’ and the unions’ approach approach were successfully combined. Goal assessment is very important; a successful alliance must be based on compatible goals. Levels of risk should be commensurate. important
BEAMISH, P. W. and INKPEN, A. C. Keeping International Joint Ventures Stable and Profitable Long Range Planning 28 (3), 26-36 (June 1995). Despite the increase in popularity, international alliances are often seen as inherently unstable. The primary problems arise from the fact of more than one parent. Instability can be caused by changes in partners’ strategic missions, in importance of the JV to the parent, in the partners’ relative bargaining power, and in increased competitive rivalry between partners. To maintain a stable relationship, the emphasis needs to be on building the relationship rather than local knowledge. Two factors influence the speed of knowledge acquisition. One is the partner’s contribution on a wide variety of topics and the other is the transparency of the local environment. Stable JVs are possible and can be profitable over a long period. RICHTER, F.-J. and VETTEL, K. Successful Joint Ventures in Japan; Transferring Knowledge Through Organizational Learning Long Range Planning 28 (3), 37-45 (June 1995). A model is developed based on case studies reflecting successful and less successful attempts by German companies to acquire the knowledge of their Japanese partners. The learning processes are set within the environmental context of the company. The first case study, Daicel Hiils Ltd, is one that may be considered ‘old-fashioned’. The Hoechst-Mitsubishi Kasei was formed following an evaluation by strategy and culture teams from both companies to evaluate the differences and to develop training procedures. In the case of Bosch, there was an awareness of all knowledge layers. The company was able to anticipate developments and react accordingly. Western companies which do not develop such an organizational knowledge risk losing competitive advantage. If they do extend their knowledge base, there is a guarantee of organizational renewal. KUKALIS, S. and JUNGEMANN,M. Strategic Planning for a Joint Venture Long Range Planning 28 (3), 46-57 (June 1995). Though joint ventures result in the creation of a new entity that is formally independent of its parents, in practice the parents can exert considerable control on the management of the joint venture. In the case study, the Thums Long Beach Company, the strategic planning process is shown to be highly complex and