The German-Russian foreign trade has been doubled since the year 2000 to 50
billion Euros. According to the Ost-Ausschuss of the German Economy (Deutsche
Wirtschaft) this positive trend will continue during the next years. German
companies are planning investments accounting to 1.4 billion Euros in the Russian
market and as well Russian firms are going to invest in Germany.
Russia is not only the biggest country in the world but also richest in commodities.
Furthermore, it is also one of the fastest growing economies in the world with a
geographical closeness to Germany. This should be reason enough for the
German companies to invest in the Russian market and reversely. Next to
exporting and licensing the entity form of joint ventures represents a good strategy
for entering the foreign market. The hosting partner will deliver the knowledge and
technology and the home partner will offer experience in the market, meaning
awareness of cultural differences, political regulations and potential conflicts.
Nevertheless, joint ventures are also starting points for conflicts that may
endanger the success of the business. This paper deals with the conflict
management of joint ventures that have been coordinated by German and
Russian firms.
At first the terms conflict management and joint venture will be defined followed by
an introduction to the two countries Germany and Russia. At the second stage
different starting points for conflicts will be determined. Examples of these are the
differences in culture, the restrictions and regulations for entering the Russian
market and opinions of experts on joint ventures with Russia. Due to the lacking of
direct information on conflict management of actual joint ventures, two successful
joint ventures will be presented. Occurred and potential conflicts will be
determined. With help of these conclusions will be drawn upon the management of
conflicts which most often leads to success in business. To complete the paper
lessons learnt for more Russian joint ventures will be pointed out.
Inhaltsverzeichnis (Table of Contents)
- Executive Summary
- Table of Contents
- Problems and Objectives of the topic
- Clarification of important terms being used
- Conflict Management
- Joint Ventures
- The Russian Federation
- Federal Republic of Germany
- Analysis
- Cultural comparison of both countries based on Hofstede
- Individualism versus collectivism
- High versus low power distance
- High versus low uncertainty avoidance
- Masculine versus feminine
- Historical development of Russian job involvement
- Transformation of Russian law principles
- Internal stability conditions of JVs
- Empirical study of JVs in Russia
- Cultural comparison of both countries based on Hofstede
- Selected examples of German-Russian JVs
- Nord Stream AG
- Importance of Russian Gas for Europe
- Organisation of Nord Stream AG
- Motivation of both sides to enter the Nord Stream JV
- Possible conflicts between the participants of the JV
- Increased Russian leverage on non-connected countries
- Increased Russian leverage on connected countries
- Domestic Energy Concerns
- Risk of Appeasement
- Regional and Intra-EU Frictions
- Dependence on scarce resources
- Mobile TeleSystems OJSC
- General information
- Shareholder structure and historical development
- Breaking up of the international JV and consequences
- AFK Sistema as a special partner for Russian-German JVs
- Nord Stream AG
- Lessons Learnt
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper examines conflict management in German-Russian joint ventures. It aims to provide a comprehensive overview of the challenges and opportunities associated with this type of collaboration, emphasizing the importance of understanding cultural differences, legal frameworks, and potential conflict points. The paper delves into the historical and contemporary context of German-Russian business relations, analyzing the evolution of Russian business practices and the legal landscape. It also explores how cultural factors, particularly as outlined by Hofstede's cultural dimensions, impact joint venture dynamics.
- Understanding Cultural Differences and their Impact on Joint Ventures
- Navigating Legal and Regulatory Frameworks in the Russian Market
- Identifying and Managing Potential Conflicts in German-Russian Joint Ventures
- Analyzing Successful Case Studies of German-Russian Joint Ventures
- Developing Strategies for Effective Conflict Management and Collaboration
Zusammenfassung der Kapitel (Chapter Summaries)
The paper begins by defining key terms such as conflict management and joint ventures, providing context by introducing Germany and Russia as economic partners. It then delves into a comparative cultural analysis of both countries based on Hofstede's dimensions, highlighting potential areas of friction. This is followed by a discussion of the historical evolution of Russian business practices and the transformation of Russian law principles, emphasizing the challenges for foreign businesses entering the Russian market. The paper also examines the internal stability conditions of joint ventures and presents findings from an empirical study of German-Russian joint ventures.
The paper then presents two specific examples of German-Russian joint ventures: Nord Stream AG and Mobile TeleSystems OJSC. These case studies illustrate the complexities and challenges faced by German and Russian companies in joint ventures, focusing on potential conflicts and success factors. The paper concludes by outlining lessons learned from these case studies, offering insights into the effective management of conflicts and fostering successful collaborations in the German-Russian business context.
Schlüsselwörter (Keywords)
The key focus areas of this paper are conflict management, joint ventures, German-Russian business relations, cultural differences, legal frameworks, Russian market entry, case studies, success factors, and conflict resolution strategies.
- Citar trabajo
- A. Rademacher (Autor), K. Zimmer (Autor), J. Laubner (Autor), A. Payarolla (Autor), 2008, Conflict Management in German-Russian Joint Ventures, Múnich, GRIN Verlag, https://www.grin.com/document/160361
