There is no doubt that many difficulties arise in cross-border alliances in melding both national and corporate cultures of the parties, in overcoming language and communication barriers, and in building trust between the parties over how to share proprietary assets and management processes. Some basic guidelines, given below, will serve to minimize potential problems. However, nothing is as important as having a long “courtship” with the potential partner to establish compatibility strategically and interpersonally and setting up a “prenuptial” plan with the prospective partner Even setting up some pilot programs on a short-term basis for some of the planned combined activities can highlight areas that may become problematic.
1. Choose a partner with compatible strategic goals and objectives and one
with whom the alliance will result in synergies through the combined mar kets technologies, and management cadre.
2. Seek alliances where complementary skills, products, and markets will result. If each partner brings distinctive skills and assets to the venture, there will be reduced potential for direct competition in end products and markets; in addition, each partner will begin the alliance in a balanced relationship.'4
3. Work out with the partner how you will each deal with proprietary technology or competitively sensitive information - what will be shared and what will not, and how shared technology will be handled. Trust is an essential ingredient of an alliance, particularly in these areas; but this needs to be backed up by contractual agreements.
4. Recognize that most alliances last only a few years and wifi probably break up once a partner feels that it has incorporated the skills and information it needs to go it alone. With this in mind, you need to “learn thoroughly and rapidly about a partner's technology and management: transfer valuable ideas and practices promptly into one's own operations!”5
Some of the opportunities and complexities in cross-border alliances are illustrated in the following section on joint ventures in the Commonwealth of Independent States (CIS). Such alliances are further complicated by the different history of the two parties' economic systems and the resulting business practices.
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