STRATEGIC ALLIANCES WITH JAPANESE FIRMS - MYTHS AND REALITIES

Japanese and Western firms have a long history of collaborative agreements in Japan. A close look at several international joint ventures in Japan suggests that the reasons for success or failure are not very different from those outside Japan. Failures are not the result of a conspiracy on the part of the Japanese partners. Rather they stem from the classical problems linked to international joint ventures: commitment, communications between partners, clear definitions of roles, complexity of the project, corporate amnesia to which must be added a few major challenges linked to cultural differences. As the experiences of General Electric and 3M in Japan suggest, joint ventures in Japan can work when partners avoid complexities, trust each other and commit themselves heartily to the success of the new company.