NEGOTIATING INTERNATIONAL JOINT VENTURE（二）.docVIP

CULTURAL DIFFERENCES IN INTERNATIONAL JOINT VENTURE NEGOTIATIONS Irina Y. Naoumova, University of Tennessee, Knoxville/State University – Higher School of Economics, Moscow, Russia This paper describes the negotiation of Russian-Canadian-Chinese joint venture. The study is focused on negotiation conflicts and based on a real situation and author’s consulting experience. The results may prove useful to international business executives and experts consulting joint ventures and helping them managing negotiation conflicts. Introduction This paper is concerned with the importance of development of firm cooperation for transition economies and synergy of interests of partners in international joint ventures (IJV). The focus is on Russian market that is very promising for different businesses including pharmaceutical industry. Joint ventures are widely used to combine competitive advantages of partners both in the developed and transition market economies. This study makes an emphasis on issues relating to the starting and developing phases of business, in which negotiations are playing a key role. The methodology, used for this study, is based on investigations of international joint venture conflicts (Killing, 1983; Harrigan, 1985; Habib, 1987; Reynolds, 1989). Destructive conflict could appear on different stages of IJV development including the first stage of partner negotiations. We assume that most of them led to the destroying of even the idea of IJV and thus as a hidden danger for the countries in transition could place the doubt on effectiveness of the international forms of cooperation and even increase social distrust (Milner, 1998). In conditions of intensive economic transformations of the former socialist countries and their integration in the global community international business cooperation, including IJV, could be considered as a leading factor in getting practical knowledge about norms and principles of well-developed economies and building learnin