International strategic alliances and cultural diversity

Más información sobre el libro

Business is increasingly influenced by globalization, with technological advancements and monetary systems making prices comparable across borders. To compete globally, German companies must develop sustainable internationalization strategies. Strategic alliances have gained importance due to their relatively low risks compared to other options, but success requires thorough preparation. While technological and economic risks can be mitigated, social risks are more unpredictable, especially in international alliances where diverse national cultures add complexity. German firms entering foreign markets must familiarize themselves with the cultural norms and values of those countries. Various studies have aimed to define culture and explain cultural differences, providing insights that can help evaluate the impact of national culture on strategic alliances. However, theoretical understanding cannot replace practical experience, which is crucial for grasping a foreign culture's behaviors. Research can identify foundational cultural assumptions, allowing for some understanding of another culture, but personal experiences are irreplaceable. Given the vast populations in countries like China and India, diverse cultural norms and values must be acknowledged. As international trade grows, German companies will face ongoing challenges in cultural matters to maintain a competitive edge. A diverse workforce can enhance this understanding