Joint Ventures and Strategic Partnerships

Recommendations for Achieving Success

Exercise patience: Select and build trust with a partner that produces compatible but not direct competitive products.

“Race to learn”: Learn as fast and as much as possible without giving away core technologies and secrets.

Play by the book: Establish at the outset ground rules about the rights and responsibilities of all parties.

From Global Companies to Transnational Companies

Global Company: A multinational venture centrally managed from one country has global strategies for product design, financing, purchasing, manufacturing, and marketing

Transnational Company: A global network of productive units with a decentralized authority structure and no distinct national identity

Relies on a blend of global and local strategies

Corporate Giants Worldwide

Needed: Global Managers with Cultural Intelligence and Cross-Cultural Competencies

Cultural Intelligence (CQ): The ability of an outsider to read individual behavior, group dynamics, and situations in a foreign culture

Three Components of Cultural Intelligence:

1.      Knowledge of culture

2.      The practice of mindfulness

3.      Development of cross-cultural skills

CQ involves:

·         Impression management

·         Emotional intelligence

Competencies Needed to Work Effectively Across Cultures