Transnational Marriages in the Steel Industry: Experience and Lessons for Global Business

Transnational Marriages in the Steel Industry: Experience and Lessons for Global Business

Transnational Marriages in the Steel Industry: Experience and Lessons for Global Business

Transnational Marriages in the Steel Industry: Experience and Lessons for Global Business

Synopsis

Drawing upon case studies of firms in the steel industry, authors show that companies competing internationally can pool their strengths to offset their individual weaknesses, enabling them to build economically successful entities more easily than if each company tried to go it alone in competition with rivals. In doing so they show how the world of steel industry emerged into a group of international joint ventures and how in each of these transnational marriages the whole became greater than the sum of its parts. Among the authors' main points are: cultural conflicts are minimized by economic success but magnified by failure; expertise and commitment can overcome national differences, and even failing international joint ventures can be rehabilitated. Important reading for professionals in all areas of international business and for their colleagues in the academic community.

Excerpt

Globalization is generally perceived as a two-dimensional phenomenon. Firms in nations unable to sell their entire desired output within their own borders attempt to market the surplus abroad. There, consumers attracted by price or quality welcome these imports. At the same time, competing producers within those target nations attempt to erect protectionist barriers. Sometimes firms attempt to leap over borders to establish production outposts in target countries and abandon any concept of a home base, thereby becoming truly rootless multinationals.

Another international trade phenomenon has attracted less attention: that of transnational industrial marriages in which two competing business organizations maintain their respective home bases but join resources and combine strengths to exploit markets otherwise inadequately available to either. Such international joint ventures are the focus of this book, which illustrates the magnitude of the international joint venture movement, assesses its motivations, relies upon the basic steel industry for illustrations of its strengths and weaknesses, and draws lessons from that experience. Those lessons are the purpose of and justification for this book -- strategic lessons for firms both within the steel industry and outside it, public policy lessons for those wondering whether to promote or discourage such international marriages, and academic lessons for those whose motives are . . .

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