Business is increasingly affected by the impacts of globalization. The technological progress, as well as monetary systems have made prices comparable beyond borders. If German companies want to withstand the global competition, they have to develop sustainable internationalization strategies. Since the risks of entering into a strategic alliance are comparatively low in contrast to other internationalization options, this topic has gained in importance. But a sound preparation is inevitable in order to succeed. While technological and economical risks of alliances can be reduced easily by a solid preparation, the social risks are highly dependent on the individuals involved and thus hard to prevent. Especially in international strategic alliances including the additional complexity of different national cultures, social problems can be of high importance. German companies which prefer to enter into foreign markets should carefully get acquainted with the foreign country’s cultural norms and values. Up to today, many approaches have been made to define culture and various studies have been performed driven by the desire to understand and provide explanations for cultural differences. The results of those studies can be used to evaluate the impacts of a national culture and its specifics on strategic alliances. Yet, a theoretical study of a foreign culture cannot replace practical experiences. However, it can provide a starting point which helps to understand and accept the behavior of a foreign culture. Research results provide a good foundation for the identification of basic assumptions which underlie a foreign national culture. The general framework of another culture can be investigated, understood, and even be learned to a certain extent. Nevertheless, nothing can substitute personal experiences with another culture and its specific beliefs and values. Due to the enormous population, especially in China and India, broadly diversified cultural norms and values according to cultural subcategories can be presumed. As the volume of international trade is likely to further grow, German companies will be faced with internationalization strategies also in the future. If they want to gain a sustainable competitive advantage while going international, German companies will continuously be forced to deal with cultural matters. A broadly diversified workforce will contribute to this understanding and hence to the international success. Nevertheless, the cultural values and beliefs of a nation cannot be completely generalized. Rather, geographical differences and other cultural subcategories have to be borne in mind. Some studies about cultural differences have already included such approaches to regional or religious differences, but further research is necessary in this field. Yet, social risks in international strategic alliances which are related to the individuals involved can never be excluded altogether.

Textprobe: Kapitel 1.2., Social risks in strategic alliances: The foundation of international strategic alliances has become a useful alternative to foreign acquisitions or the independent expansion of a company’s business activities into foreign markets. Here, the risks are comparably low and a reversion is much easier. Besides the advantages, each strategic alliance bears its own risks which Belzer has categorized into technical, economical, and social risks. Yet, technical and economical risks can be minimized or even completely prevented by a sound preparation and a sensible simulation of the alliance in the forefront. Social risks which are highly dependent on the individuals involved in a strategic alliance can also be reduced by this measures to a certain extend. However, especially in international strategic alliances where different national cultures clash, social risks can represent barriers which can barely be overcome without a prior comprehensive investigation. Generally, an alliance’s place of business is in the country where it is founded. Thus, German companies which prefer to enter into foreign markets should carefully get acquainted with the foreign country’s cultural norms and values in order to succeed. As Zander & Lerpold advice, a cultural due diligence should be obligatory for transnational strategic alliances in order to assess or visual-ize the probable areas of concern. Many approaches have been made in order to define culture and various studies have been performed driven by the desire to understand and provide explanations for cultural differences. The results of those studies can be used to evaluate the impacts of a national culture and its specifics on other subjects such as strategic alliances. Yet, culture remains a subject which is hard to measure. Additionally, a theoretical study of a foreign culture cannot replace practical experiences. However, it can provide a starting point which helps to understand and accept the behavior of a foreign culture more easily. This book does not provide instructions on how to set up strategic alliances in Iran, India, or China at its best. It rather gives an overview about the country-specific cultural norms and values which represent potential social risks within strategic alliances. The focus is set on the different national cultures and their particularities while strategic alliances are only discussed marginally. The presentation and analysis of three major studies performed by Hofstede, Trompenaars & Hampden-Turner, and House shall establish a basic understanding of the dimensions of national culture. Herewith, the specific differences between the German, the Iranian, the Indian, and the Chinese culture are evaluated. By means of practical examples and field reports, the specific constellations between German companies and strategic partners from Iran, India, or China are presented and analyzed. On this basis, circumstances that need special attention are emphasized and the most important differences which need special preparation are summarized. Within this book, the fundamentals of strategic alliances as well as special forms of interna-tional strategic alliances are presented by analyzing literature. Furthermore, the elements of culture, various cultural studies, and the specific cultural norms and values of Germany, Iran, India, and China are analyzed on the basis of publications. Subsequently, practical examples of cross-border alliances between these countries are explained and personal experiences of German individuals involved in such projects are given. Concluding, the practical examples are analyzed and evaluated in order to demonstrate the most critical differences in national culture. A final conclusion is drawn at the end of this book which leads to an outlook for the future.

• Culture studies

• Cultural diversity

• Hofstede

• Geert

• House

• Robert

• Strategic alliances

Daniela Heidtmann, born 1979 in Mülheim, developed interest in cross-cultural topics during a high school year in the United States. After finishing school and receiving her university-entrance diploma, she completed an extra-occupational Bachelor degree at the Hogeschool Zeeland in 2002. During her professional experience in a global enterprise, her interest in different national cultures intensified. In 2008, she earned her MBA degree from the FOM Essen and has been working in international license projects since then.