Forming business partnerships with foreign corporations

Summary form only given, as follows. One of the fundamental trends of the 80's and 90's has been the growth of international business ties between companies. This is even more true in electronics in general and among semiconductor equipment companies in particular. Initially, these ties were mostly concentrated in the area of trade, as companies attempted to leverage domestic market acceptance abroad. Increasingly, these bonds are becoming more sophisticated, involving marketing and sales joint ventures, R&D cooperation projects, technology acquisition, etc. The drivers behind this trend are a desire to concentrate on core competencies, the need to amortize R&D investments over as large a customer base as possible and the increasing familiarity with the international environment. However, while the rewards of international cooperation can be high, many obstacles usually have to be overcome before success is at hand, and a significant number of projects are abandoned along the way because the partners no longer have enough in common to warrant continuing support. In the international realm, these obstacles-by definition-can be traced back to poor communication and cultural misunderstandings. Indeed, very subtle differences in assumptions about basic business practices can rapidly derail even the best laid plans. It is therefore critical to look at foreign cooperative projects with a different eye, to be cognizant of the challenges ahead and not to underestimate the demands placed on the available project management pool. Practical examples will be given of both positive and less satisfactory outcomes.