MusicSarreV3, Istex, Corpus, bibRecord, 001946

The strategic alliances between the American and German companies

Identifieur interne : 001946 ( Istex/Corpus ); précédent : 001945; suivant : 001947

The strategic alliances between the American and German companies

Auteurs : Khaled Abdou ; Simone Kliche

Source :

European Business Review [ 0955-534X ] ; 2004-02-01.

RBID : ISTEX:F2CC6433C8D8C6D15949B6A654C90BE2710F679E

English descriptors

Teeft :
- Alliance, Alliance activities, Alliance partners, American companies, American culture, American market, Barsoux, Basic assumptions, Business context, Collectivist, Collectivist societies, Columbia journal, Competitive advantage, Competitive uncertainty, Cultural differences, Cultural distance, Cultural traits, Cultural values, Demand uncertainty, Deutsche, Deutsche bank, Deutsche telekom, Different cultures, Eastern illinois university, Equity alliance, Federal republic, France telecom, German companies, German managers, Glunk, Greater size, Harvard business review, Hennart, High degree, High failure rate, Hofstede, Human activity, Human nature, International business, International business studies, International studies, Joint venture, Joint ventures, Kogut, Kuchinke, Management journal, Management review, Management science, Manufacturing enterprises, More competitors, More nations, National culture, National cultures, National differences, Ndings, Numerical index, Organization science, Organization studies, Organizational, Organizational behavior, Organizational culture, Other factors, Other things, Personal relationship, Power distance, Relational uncertainty, Right alliance partner, Schneider, Senator film, Several reasons, Siemens, Single companies, Small manufacturing enterprises, Smithkline beechham, Steensma, Strategic alliance, Strategic alliances, Strategic management journal, Strategic planning, Study attempts, Synergy, Tacit collusion, Technological alliances, Technological uncertainty, Technology alliance formation, Technology alliances, Term culture, Time warner, Uncertainty avoidance, Unknown situations, Value dimensions, Value dimensions model, Western part, World business.

Abstract

In the current situation of the global economy, engaging in strategic alliances depends upon several factors in which the national and organizational cultures of the companies are involved. This paper discusses the cultural differences between the German and the American culture by applying Hofstede's value dimension system and how these differences affect the formation of strategic alliances and outcomes. Furthermore, the paper examines whether literature sustains the fact that Hofstede's value model can be used to sufficiently distinguish between the German and the American culture.

Url:

https://api.istex.fr/document/F2CC6433C8D8C6D15949B6A654C90BE2710F679E/fulltext/pdf

DOI: 10.1108/09555340410512385

Links to Exploration step

ISTEX:F2CC6433C8D8C6D15949B6A654C90BE2710F679E

Le document en format XML

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<ack><p>Dr D. Elmuti, the Professor at Eastern Illinois University, contributed to this paper by his supervision and guidance. This paper is based on an independent study written at Eastern Illinois University.</p>
</ack>
</front>
<body><sec><title>Overview</title>
<p>International trade is growing and the term “globalization” leads the international way of doing business. Exports and imports of the USA are expected to rise from 13 percent in 1998 up to 20.2 percent in 2008 (<xref ref-type="bibr" rid="b68">Saunders and Su, 1999</xref>
). Where mergers and acquisitions were still the appropriate tool to encounter the global market during the past ten years, strategic alliances are, according to <xref ref-type="bibr" rid="b33">Goldsmith <italic>et al</italic>
. (2000)</xref>
, the actual tools nowadays. Especially for small and medium sized companies (<xref ref-type="bibr" rid="b77">Steensma <italic>et al</italic>
., 2000</xref>
), as well as for start‐ups, strategic alliances are much more advantageous than mergers (<xref ref-type="bibr" rid="b16">Baum <italic>et al</italic>
., 2000</xref>
). Strategic alliances occur when two or more firms contribute their physical, financial, human, and technological resources or expertise to achieve competitive advantage (<xref ref-type="bibr" rid="b26">Das and Teng, 1998</xref>
).</p>
<p>In 1980, these alliance activities accounted only for 2 percent, and in 1997, they accounted for 21 percent. The growth rate of alliances is 25 percent per year since 1985 (<xref ref-type="bibr" rid="b63">Pekar and Allio, 1994</xref>
). Strategic alliances show a high failure rate and studies have shown that the failure rate can reach a level of up to 50 percent (<xref ref-type="bibr" rid="b17">Beamish, 1985</xref>
; <xref ref-type="bibr" rid="b61">Park and Russo, 1996</xref>
). The success rate of strategic alliances is much lower than those of nonalliances, such as mergers (<xref ref-type="bibr" rid="b18">Bleeke and Ernst, 1991</xref>
; <xref ref-type="bibr" rid="b44">Kent, 1991</xref>
).</p>
<p>This study attempts to analyze one possible reason for the high failure rate: national and organizational culture differences between countries. According to <xref ref-type="bibr" rid="b69">Saxton (1997)</xref>
, a growing aspect of selecting the right alliance partner is culture. The study, being a literature review, will reveal that culture, among other things, decides on the success or failure of the engagement in a strategic alliance. Furthermore, it will point at several cultural differences, using Hofstede's four value dimensions model, between the USA and Germany that can have an impact on strategic alliances between companies from these cultures.</p>
<p>Using previous theoretical research and empirical studies, the study concentrates on German companies entering the American market through strategic alliances. The choice of these countries was made due to their strong economic, political, and historical relationships. Taking the USA as the country of entry is interesting, because the USA is one of a few countries with minimal entry restrictions as well as being highly competitive. Due to this highly competitive environment, an unsuccessful entry mode probably soon leads to failure (<xref ref-type="bibr" rid="b37">Hennart, 1998</xref>
). Wolfgang Plischke, president of Bayer's pharmaceutical division in North America, shows how tight the economic linkages between Germany and the USA have become:</p>
<disp-quote><p>For us [Bayer] the United States was once a country like many other countries within the biopharma world. Then it became a region. […] Now we even take over some leadership for the world‐wide organization. That's a big emotional transition for Bayer. It tells you actually how the company has changed (<xref ref-type="bibr" rid="b46">Koberstein, 2000</xref>
).</p>
</disp-quote>
<p>This paper aims to discuss two hypotheses: companies engage in strategic alliances only if benefits are probable. The benefits in strategic alliances occur in the way of synergies. Alliances bear, as will be shown in a later section, inherent risks. For example, how the partners in a strategic alliance divide power over the venture is seen in literature as one key issue of success or failure (<xref ref-type="bibr" rid="b55">Makhija and Ganesh, 1997</xref>
; <xref ref-type="bibr" rid="b58">Mjoen and Tallman, 1997</xref>
; <xref ref-type="bibr" rid="b87">Yan, 1998</xref>
). If the risk of engaging in an alliance outperforms the anticipated synergies, the companies will not engage in those alliances. This study discusses whether literature supports the influence of the partners' cultural differences on both the benefits and risks of the strategic alliance. Thus, the first hypothesis is:<italic>H1</italic>
.=Research shows that cultural differences influence the formation and outcome of strategic alliances, especially in a general setting.In order to differentiate between the German and the American culture and explain discrepancies, this study concentrates on the findings by Hofstede (<xref ref-type="bibr" rid="b40">1991</xref>
). Having conducted a famous study in the 1960s, Hofstede explains culture along four‐value dimension, which are:<list list-type="order"><list-item><label>1. </label>
<p><italic>Power distance</italic>
: “the extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally” (<xref ref-type="bibr" rid="b40">Hofstede, 1991</xref>
).</p>
</list-item>
<list-item><label>2. </label>
<p><italic>Individualism/collectivism</italic>
: “societies in which the interest of the group prevails over the interest of the individual are collectivist societies” (<xref ref-type="bibr" rid="b40">Hofstede, 1991</xref>
).</p>
</list-item>
<list-item><label>3. </label>
<p><italic>Uncertainty avoidance</italic>
: “the extent to which the members of a culture feel threatened by uncertain or unknown situations” (<xref ref-type="bibr" rid="b40">Hofstede, 1991</xref>
).</p>
</list-item>
<list-item><label>4. </label>
<p><italic>Masculinity/femininity</italic>
: “masculinity and femininity refer to the overall ‘toughness’ of a society” (<xref ref-type="bibr" rid="b40">Hofstede, 1991</xref>
).</p>
</list-item>
</list>
Hofstede's work was chosen as being the basis of this study, due to several reasons: first, no other study in the field of culture is of an equal or greater size; second, the cultural values are linked to a numerical index, which makes comparing countries more ostensible, and third, Hofstede stressed values that can be found in the workplace and his study is thus well suited for discussing culture in a business context.</p>
<p>Several critics of Hofstede's application have stated that his work might not be suitable in general to the USA and Germany, but rather might show particular samples (<xref ref-type="bibr" rid="b76">Søndergaard, 1994</xref>
). Furthermore, the study was conducted in the 1960s. Even though it was updated during the last decades, the likelihood that the scores on the value dimensions have changed due to different social, economic, political, and technological circumstances is high (<xref ref-type="bibr" rid="b52">Kuchinke, 1999</xref>
). Nevertheless, this study attempts to show that these dimensions are able to distinguish among the German and American culture as presented in recent literature.</p>
<p><italic>H2</italic>
.=Hofstede's four “value” dimensions of culture explain national and organizational cultural differences between Germany and the USA. The USA ranks higher in power distance and individualism and lower in uncertainty avoidance. There are no significant differences in masculinity.</p>
</sec>
<sec><title>Strategic alliances</title>
<p>A strategic alliance exists when companies co‐operate but do not strive towards the goal of reducing the industry's output level and increasing the price (<xref ref-type="bibr" rid="b47">Kogut, 1988</xref>
; <xref ref-type="bibr" rid="b36">Hennart, 1988</xref>
). Strategic alliances can be divided into three broad categories:</p>
<list list-type="order"><list-item><label>1. </label>
<p><italic>Non‐equity alliances</italic>
. In a non‐equity alliance, the companies co‐operate by letting various contracts manage the co‐operation. Neither equity positions are taken in each other, nor is an independent unit formed to co‐ordinate the co‐operation efforts. Examples are licensing agreements and supply agreements.</p>
</list-item>
<list-item><label>2. </label>
<p><italic>Joint ventures</italic>
. In joint ventures, the co‐operating partners create a legally independent firm: the profits of this firm are shared between the co‐operating companies (<xref ref-type="bibr" rid="b36">Hennart, 1988</xref>
). Equity joint ventures exist when a firm acquires partial ownership of another firm. Two types of equity joint ventures have to be distinguished: scale joint ventures, within which the partners move similarly. An example here is the banking consortia, the European American Bank, which was formed by European banks to enter the US market. All partners performed a horizontal expansion. The other type of equity joint venture is the link joint venture. Here, the partners do not move symmetrically. An example is the joint venture Dow‐Badische, the result of the co‐operation between Dow Chemical and BASF. Here, Dow Chemical's intention was one of diversification, while BASF's reason for entering the joint venture was to make a vertical investment (<xref ref-type="bibr" rid="b36">Hennart, 1988</xref>
).</p>
</list-item>
<list-item><label>3. </label>
<p><italic>Equity alliances</italic>
. In contrast to a non‐equity alliance, equity holdings exist in an equity alliance. As <xref ref-type="bibr" rid="b37">Hennart (1998)</xref>
 states:</p>
<p>The greater the cultural distance between the home country of a company and the host market, the more likely the company will make use of an equity alliance. Accordingly, the local partner can negotiate with suppliers, customers and governmental institutions, as well as with the employees.</p>
</list-item>
</list>
</sec>
<sec><title>Motives for entering strategic alliances</title>
<p>Generally, firms enter into strategic alliances when synergy benefits are likely to be achieved. Synergy exists when the companies' value of resources and assets combined is greater than the value of resources and assets of the single companies. Several sources of interfirm synergy have been discussed in literature. The most important synergy sources are discussed below.</p>
<sec><title>1. Exploiting economies of scale</title>
<p>Cost advantages that would not be possible to obtain, if the single companies acted independently (<xref ref-type="bibr" rid="b47">Kogut, 1988</xref>
).</p>
<p>Examples here are: Elenac, a joint venture between BASF, Shell and Montell. Shared know‐how and expertise in the areas of products, technology, and service are important for this joint venture (<xref ref-type="bibr" rid="b3">BASF, 2001</xref>
). Another joint venture is Global One, established by Deutsche Telekom, France Telecom, and Sprint, which offers integrated global solutions (<xref ref-type="bibr" rid="b14">Deutsche Telekom, 2001</xref>
). American Electric Power, Bechtel Enterprises Holding and Siemens Power Transmission & Distribution, Inc. formed a joint venture: Lectrix LLC, which offers industrial power quality solutions and transmission network enhancements. The partners contribute knowledge from different areas: Siemens is the experienced provider of electric power and distribution systems, Bechtel has expertise in development, engineering and construction, and AEP offers knowledge in the field of management and analysis of transmission networks and power quality issues (<xref ref-type="bibr" rid="b11 b12 b13">Siemans, 2001a,b</xref>
). Microsoft and Accenture founded a joint venture, Avanade, which provides electronic platforms for customers on which they can build infrastructures.</p>
</sec>
<sec><title>2. Learning from competitors</title>
<p>The otherwise competing firms might have the advantage of co‐operating, although it might help a company to compete even outside the strategic alliance. Two risks are associated with this kind of synergy: first, the improvement of one firm in the strategic alliance can hurt the partner from which it learned (<xref ref-type="bibr" rid="b66">Reich and Mankin, 1986</xref>
). Second, government regulators may conclude that those strategic alliances are forms of tacit or explicit collusion, and therefore may be subject to legal examinations.</p>
<p>The six competitors ABN AMRO, BNP Paribas Group, Caboto Holding Sim, Deutsche Bank, Dresdner Bank and J.P. Morgan established in 2000 the joint venture <ext-link ext-link-type="uri" xlink:href="http://www.bondclick.com">www.bondclick.com</ext-link>
, a Website for investors to trade European government bonds on one electronic platform (<xref ref-type="bibr" rid="b6">Deutsche Bank, 2001</xref>
).</p>
</sec>
<sec><title>3. Managing risk and sharing costs</title>
<p>Investments can require such huge amounts of resources that a failure could lead to bankruptcy of the firm, or at least to intense financial distress. Therefore, companies share the costs of investments and spread the risk.</p>
<p>One example is the offshore oil drilling industry (<xref ref-type="bibr" rid="b36">Hennart, 1988</xref>
). PreAnalytiX GmbH is a joint venture between Quiagen NV and Becton, Dickinson and Company. Referring to the companies' statements, the joint venture aims at developing, manufacturing and marketing integrated systems for the collection, stabilization, and purification of nucleic acids for molecular diagnostic testing (<xref ref-type="bibr" rid="b9">Quiagen, 2001</xref>
). Siemens AG and Motorola, Inc. founded the joint venture Semiconductor300, which will develop 300mm silicon wafers. The joint venture is intended to facilitate volume production and thus gain substantial cost reductions (<xref ref-type="bibr" rid="b11 b12 b13">Siemsnstd.com, 2001; Siemens, 2001b</xref>
).</p>
</sec>
<sec><title>4. Facilitating tacit collusion</title>
<p>Communication between the partners in a strategic alliance concerning information about pricing strategies and costs for products or services outside the alliance is prohibited. Nevertheless, the co‐operation helps to create a surrounding within which a tacit collusion might develop (<xref ref-type="bibr" rid="b21">Burgers <italic>et al</italic>
., 1993</xref>
). A dispute exists in literature as to whether strategic alliances increase the probability of collusion. Work that supports an increase in tacit collusion through strategic alliances (<xref ref-type="bibr" rid="b44">Kent, 1991</xref>
; <xref ref-type="bibr" rid="b19">Bloch, 1995</xref>
) is opposed to work that encourages reasons for entering strategic alliances that have nothing to do with tacit collusion (<xref ref-type="bibr" rid="b47">Kogut, 1988</xref>
; <xref ref-type="bibr" rid="b36">Hennart, 1988</xref>
). Because it is very unlikely for companies to publish facilitating tacit collusion as a reason for engaging in a strategic alliance, no strategic alliance in this direction was found.</p>
</sec>
<sec><title>5. Low‐cost entry into new markets</title>
<p>Strategic alliances can lower the costs associated with the entry into new markets, especially into foreign markets (<xref ref-type="bibr" rid="b47">Kogut, 1988</xref>
; <xref ref-type="bibr" rid="b36">Hennart, 1988</xref>
). Ordinarily, one partner brings the local knowledge into the alliance and the other one the products or services. When the culture of one firm's origin is very different to the culture of the other firm's origin that wants to enter the market, entering firms are more likely to make use of joint ventures (<xref ref-type="bibr" rid="b49">Kogut and Singh, 1986</xref>
). The increased globalization of the world's industry, together with heterogeneous cultures and political systems and barriers to free trade, makes international strategic alliances much more common (<xref ref-type="bibr" rid="b36">Hennart, 1988</xref>
; <xref ref-type="bibr" rid="b64">Pillai <italic>et al</italic>
., 1999</xref>
).</p>
<p>One example is depicted in the entertainment industry: the joint venture Amberlon Pictures, which is for the Senator Film AG the point of entry into the American and international production of movies (<xref ref-type="bibr" rid="b10">Senator Film AG, 2001</xref>
). For the world‐wide production and marketing of English movies, Senator Film AG entered into this strategic alliance together with studio boss Eric Pleskow and the manager and author Leon de Winter. To enter the American market, Siemens automotive founded Siemens Diesel Systems Technology LLC, a joint venture with Navistar Int. Corp. (<xref ref-type="bibr" rid="b11 b12 b13">Siemens, 2001a,b</xref>
). Porsche AG has established a joint venture with Harley‐Davidson Motor Company. The assembly of Harley‐Davidson's motor components for new models is the concern of this joint venture. Porsche perceives this joint venture as one possible point of entry into the American market (<xref ref-type="bibr" rid="b100">Porsche, 2001</xref>
).</p>
</sec>
<sec><title>6. Low‐cost entry into new industries and new industry segments</title>
<p>Skills, ability and products are needed for a company successfully to enter a new industry or at least a new industry segment. Often, these companies lack at least one of these factors and co‐operation with a company that is already in the specific industry can decrease costs for creating skills, abilities and products (<xref ref-type="bibr" rid="b47">Kogut, 1988</xref>
).</p>
<p>The strategic alliance between Du Pont and Phillips Optical is one example (<xref ref-type="bibr" rid="b31">Freeman and Hudson, 1986</xref>
). Another very recent example is the joint venture MusicNet, which is planned to start operating (not approved yet by the anti‐trust commission) in July. This joint venture is a co‐operation between the big music companies AOL Time Warner, EMI Group plc, Real Networks, Inc., and Bertelsmann Music Group. MusicNet is supposed to become an Internet platform for online music services on a subscription basis (<xref ref-type="bibr" rid="b4">Bertelsmann, 2001</xref>
).</p>
</sec>
<sec><title>7. Managing uncertainty</title>
<p>Uncertainty plays a significant role in decision‐making and managerial behavior in general (<xref ref-type="bibr" rid="b75">Sitkin and Pablo, 1992</xref>
). Under a high degree of uncertainty, companies might not be able to tell which strategies to choose at particular points in time. Thus, the companies want to keep flexibility to move quickly into a particular market once this strategy is perceived as being advantageous (<xref ref-type="bibr" rid="b48">Kogut, 1991</xref>
; <xref ref-type="bibr" rid="b21">Burgers <italic>et al</italic>
., 1993</xref>
). Through a strategic alliance, the firms can maintain a point of entry into a market or industry, without incurring the costs associated with full‐scale entry.</p>
<p>Bayer Corporation Pharmaceutical Division and SmithKline Beechham launched through a joint venture the tablets BAYCOL, a cholesterol‐lowering drug. In a co‐promotion agreement, in 1997, SmithKline Beechham provides marketing and sales support and both will work together towards the development of new dosage formulas (<xref ref-type="bibr" rid="b5">BayerUS, 2001</xref>
).</p>
<sec><title>(a) Demand uncertainty and competitive uncertainty</title>
<p>Under some circumstances, it might be too costly for a company to try to achieve competitive advantage on its own (<xref ref-type="bibr" rid="b26">Das and Teng, 1998</xref>
). Referring to <xref ref-type="bibr" rid="b21">Burgers <italic>et al</italic>
. (1993)</xref>
, the companies' desire to reduce demand uncertainty and competitive uncertainty are important motives for entering strategic alliances. The authors define demand uncertainty as the uncertainty that arises from unpredictable changes in consumer purchasing patterns. According to the authors, competitive uncertainty is the uncertainty that arises from competitive interdependence, saying that a firm does not know in advance what kind of reaction the competitor will undertake when the company takes action.</p>
<p>The increased alliance activities in the auto industry may have been forced by the companies to respond to the growing demand and competitive uncertainty. The demand uncertainty both in the USA and in Europe increased. The increase in the USA was due to the entry of a lot of foreign producers into the American market during the 1970s and 1980s, which led to a broader range of products from more competitors. In Europe, the threat of having more competitors through the single market in the EC after 1992 increased the level of demand uncertainty. Furthermore, these new market entrants disturbed the old order “how to play the game” and thus raising competitive uncertainty both in the USA and in Europe (<xref ref-type="bibr" rid="b21">Burgers <italic>et al</italic>
., 1993</xref>
).</p>
</sec>
<sec><title>(b) Relational and technological uncertainty for small manufacturing enterprises</title>
<p><xref ref-type="bibr" rid="b77">Steensma <italic>et al</italic>
. (2000)</xref>
 examined the formation of technological alliances for small independent manufacturing enterprises (SME). Two dimensions of uncertainty are particularly important for decisions regarding technological alliances:<list list-type="order"><list-item><label>1. </label>
<p>relational uncertainty; and</p>
</list-item>
<list-item><label>2. </label>
<p>technological uncertainty (<xref ref-type="bibr" rid="b25">Das and Teng, 1996</xref>
).</p>
</list-item>
</list>
According to research, an alliance is inherently risky and unstable because of the dual control of the relationship, the intrinsic incentive to cheat, and the uncertainty about the partner (<xref ref-type="bibr" rid="b42">Inkpen and Beamish, 1997</xref>
; <xref ref-type="bibr" rid="b62">Parkhe, 1993</xref>
). Therefore, one type of uncertainty perceived by executives assessing alliance opportunities is relational uncertainty, which is associated with the risk of partnering (<xref ref-type="bibr" rid="b25">Das and Teng, 1996</xref>
). A firm's executives cannot predict with certainty whether their alliance partners will exploit the relationship at their expense. A second type of uncertainty deals with technologies themselves and their commercial success. This uncertainty is due to the inherently unpredictable and dynamic nature of R&D activities (<xref ref-type="bibr" rid="b22">Chakravarthy, 1985</xref>
; <xref ref-type="bibr" rid="b65">Pisano, 1990</xref>
; <xref ref-type="bibr" rid="b80">Sutcliffe and Zaheer, 1998</xref>
). Such technological uncertainty is present, even if the alliance partners co‐operate fully.</p>
<p><xref ref-type="bibr" rid="b77">Steensma <italic>et al</italic>
. (2000)</xref>
 found it is reasonable to relate a culture's tolerance of uncertainty to the dynamics of technology alliance formation. Findings were that SMEs in uncertainty‐avoiding nations were more likely to engage in technology alliances when uncertainty increased than were SMEs in more uncertainty‐tolerant nations. Furthermore, SMEs in uncertainty‐avoiding nations tended to share technological uncertainty with technology partners, whereas SMEs in more uncertainty‐tolerant nations were more likely to cope with technological uncertainty without engaging in alliance activities.</p>
</sec>
</sec>
</sec>
<sec><title>Culture</title>
<p>To compare different cultures, some kind of agreement has to exist about the definition of the term culture. Unfortunately, no clear definition of the term culture exists and <xref ref-type="bibr" rid="b23">Chapman (1992)</xref>
 stated:<disp-quote><p>If it [culture] is not defined, how can it be operationalized? If it is not operationalized, how can it be measured?</p>
</disp-quote>
</p>
<p>By reviewing related literature, definitions of culture can be found that range from broad definitions (<xref ref-type="bibr" rid="b85">Tyler, 1958</xref>
) to very narrow definitions (<xref ref-type="bibr" rid="b45">Kluckholn and Strodtbeck, 1961</xref>
). Researchers state that any definition of culture may apply to the understanding in one country, but significantly differ in the understanding of another country. Culture has no precise measurement or definition and is therefore in a business environment often perceived as being too vague and therefore ignored (<xref ref-type="bibr" rid="b38">Hoffman and Klepper, 2000</xref>
). Culture lies the foundation for the successful attempt to meet the external environment (<xref ref-type="bibr" rid="b82">Triandis, 1993</xref>
). For the purpose of this study, the term culture is based on the definition of <xref ref-type="bibr" rid="b39">Hofstede (1980)</xref>
:</p>
<disp-quote><p>Culture is the programming of the mind, which distinguishes the members of one human group to another. Being more precise, culture is a pattern of basic assumptions – invented, discovered, or developed by a given group as it learns to cope with its problems of external adaptation and internal integration – that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems (<xref ref-type="bibr" rid="b70">Schein, 1985</xref>
, p. 9).</p>
</disp-quote>
</sec>
<sec><title>Organizational culture</title>
<p>While on the national level, culture highly determines decision making and the selection process for people where to live, on the organizational level, culture affects a lot of corporate activities, such as:<list list-type="bullet"><list-item><label>• </label>
<p>strategic planning;</p>
</list-item>
<list-item><label>• </label>
<p>organizational structure; and</p>
</list-item>
<list-item><label>• </label>
<p>management philosophy (<xref ref-type="bibr" rid="b89">Valentine, 2000</xref>
).</p>
</list-item>
</list>
Thus, the organizational culture is built on shared values and ideas and affects the way a firm operates in many ways (<xref ref-type="bibr" rid="b27">Denison and Mishra, 1995</xref>
; <xref ref-type="bibr" rid="b56">McDermott and Stock, 1999</xref>
). Since companies are products of their home countries, it can be assumed, according to <xref ref-type="bibr" rid="b53">Laurent (1983)</xref>
 and <xref ref-type="bibr" rid="b29">Erramilli (1996)</xref>
 that national culture strongly influences the company culture.</p>
</sec>
<sec><title>Drawbacks in studying culture</title>
<p>When studying national cultures, one is faced with the obstacle that the term culture does not always equal the term nation, even though researchers use nations for dividing between cultures.</p>
<p>Wars or governmental decisions decide on the location of nations by dividing continents through frontiers into different nations. Cultural frontiers are not always the same as national frontiers. For instance, there is definitely a different national culture in the eastern part of Germany, which used to be the German Democratic Republic, than can be found in the western part of Germany, which was the Federal Republic of Germany (<xref ref-type="bibr" rid="b71">Schneider and Barsoux, 1997, p. 48</xref>
). Furthermore, the very western part of Germany, the <italic>Bundesland Saarland</italic>
, is highly influenced by the French culture, due to historical reasons. Inhabitants are likely to speak French very well (<xref ref-type="bibr" rid="b71">Schneider and Barsoux, 1997, p. 50</xref>
).</p>
<p>Also in the USA, the national culture differs throughout the nation: since the civil war, south and north of the USA have to be one nation, but this does not make one culture. The USA is a melting pot of all kinds of nations, which is extremely visible in districts, such as China towns or Italian towns in cities like New York or Chicago. The south has a much larger amount of black people than the north; the climate differs between the west and the east, this list could be expanded. These regional differences within countries were confirmed by <xref ref-type="bibr" rid="b67">Ronen and Shenkar (1985)</xref>
. Nevertheless, the general literature uses comparisons between nations for comparing cultures and this study, accordingly, will make use of comparing Germany and the USA as nations to compare the German and the American culture.</p>
<p>Even if this approach is not unproblematic, “culture” equals “nation” in this study.</p>
</sec>
<sec><title>Implications of national culture on alliance formation</title>
<p>As mentioned earlier, the paper will concentrate on the study conducted by Hofstede. There have been also other attempts to account for national differences and their influence on economic organization.</p>
<p>Six works explored the basic assumptions of culture (<xref ref-type="bibr" rid="b70">Schein, 1985</xref>
): <xref ref-type="bibr" rid="b70">Schein (1985)</xref>
 discovered the assumptions: relationship with nature, human activity, human nature, relationships with people, time, and truth and reality being most important for describing culture. Partly overlapping, <xref ref-type="bibr" rid="b1">Adler's assumptions (1991)</xref>
 are:<list list-type="bullet"><list-item><label>• </label>
<p>human nature;</p>
</list-item>
<list-item><label>• </label>
<p>relationship with nature;</p>
</list-item>
<list-item><label>• </label>
<p>distinction between individualist and collectivist cultures;</p>
</list-item>
<list-item><label>• </label>
<p>human activity (being vs doing);</p>
</list-item>
<list-item><label>• </label>
<p>space (private vs public); and</p>
</list-item>
<list-item><label>• </label>
<p>time (past, present, future).</p>
</list-item>
</list>
<xref ref-type="bibr" rid="b84">Trompenaars (1993)</xref>
 emphasized three types of assumptions: relationship with nature, relationship with people (universalism vs particularism, individualism vs collectivism, affectivity, diffuse vs specific, achievement vs ascription), and relationship with time. Hall's work results in four basic assumptions:<list list-type="order"><list-item><label>1. </label>
<p>space (personal vs physical);</p>
</list-item>
<list-item><label>2. </label>
<p>time (monochronic vs polychronic);</p>
</list-item>
<list-item><label>3. </label>
<p>language (high context vs low context); and</p>
</list-item>
<list-item><label>4. </label>
<p>friendships (<xref ref-type="bibr" rid="b34">Hall and Hall, 1990</xref>
).</p>
</list-item>
</list>
Despite these findings, other authors published their findings, such as <xref ref-type="bibr" rid="b24">Dacin <italic>et al</italic>
. (1997)</xref>
. They concluded that decisions of selecting the right alliance partner can be supported by searching for cultural similarities based on Hofstede's findings (<xref ref-type="bibr" rid="b39">Hofstede, 1980</xref>
, <xref ref-type="bibr" rid="b40">1991</xref>
) to ensure a successful alliance. As Hofstede was used as a basis for several other studies (<xref ref-type="bibr" rid="b30">Franko, 1976</xref>
; <xref ref-type="bibr" rid="b79">Stopford and Haberich, 1978</xref>
; <xref ref-type="bibr" rid="b81">Tiessen, 1997</xref>
; <xref ref-type="bibr" rid="b90">Wilson, 1980</xref>
), this study makes use of Hofstede's findings as well.</p>
</sec>
<sec><title>Hofstede's four value dimensions model</title>
<p>This study focuses on the work done by Hofstede due to several reasons: first, no other published study in the field of culture is of equal or greater size, second, the cultural values are linked to a numerical index, which makes comparing countries more ostensible, and third, Hofstede stressed values that can be found in the workplace and the study is thus well suited for discussing culture in a business context.</p>
<p>Hofstede performed a survey in the 1960s among 116,000 IBM workers in over 40 different countries. The workers answered questions concerning their preferences in management style and the work environment (<xref ref-type="bibr" rid="b71">Schneider and Barsoux, 1997</xref>
, p. 79). According to Hofstede's findings, cultures can be distinguished among four “value” dimensions, which are:<list list-type="order"><list-item><label>1. </label>
<p>power distance;</p>
</list-item>
<list-item><label>2. </label>
<p>uncertainty avoidance;</p>
</list-item>
<list-item><label>3. </label>
<p>individualism/collectivism; and</p>
</list-item>
<list-item><label>4. </label>
<p>masculinity/femininity (<xref ref-type="bibr" rid="b71">Schneider and Barsoux, 1997, p. 79</xref>
).</p>
</list-item>
</list>
To be more precise, Hofstede stated that national cultures can be defined according to the relative strengths of the value tendencies in the countries. Because underlying values are difficult to change over time, the four values are supposed to be relatively stable over time (<xref ref-type="bibr" rid="b37">Hennart, 1998</xref>
). In 1984, Hofstede added a fifth dimension (<xref ref-type="bibr" rid="b41">Hofstede and Bond, 1984</xref>
), long‐term orientation, which will not be discussed in this study. The dimensions will be discussed in the following section and it will be shown whether German and American culture can be sufficiently explained with these dimensions.</p>
<p>The results of Hofstede's study indicate that Germany and the USA are in the same cluster but show meaningful differences in three dimensions:<list list-type="order"><list-item><label>1. </label>
<p>power distance, where the USA scores higher;</p>
</list-item>
<list-item><label>2. </label>
<p>individualism, where again the USA scores higher; and</p>
</list-item>
<list-item><label>3. </label>
<p>uncertainty avoidance, where the USA scores lower.</p>
</list-item>
</list>
Masculinity shows approximately equal results for both countries (<xref ref-type="bibr" rid="b52">Kuchinke, 1999</xref>
). In the following, the study examines Hofstede's four cultural traits and explores their impact on the formation of strategic alliances by American and German companies.</p>
<sec><title>(a) Power distance</title>
<p>Power distance is defined as “the extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally” (<xref ref-type="bibr" rid="b40">Hofstede, 1991</xref>
, p. 28). Hofstede defines institutions as the basic elements of a society such as family, school, and community, whereas organizations as the places where people work. To measure the differences among countries, Hofstede made use of his statistical measurement, power distance index (PDI).</p>
<p>The results of the PDI showed that the USA ranked on the low side, but not extremely low (38) and that Germany (the Federal Republic) scored low (35). What do these figures mean for the compatibility of the cultures? The PDI gives information about the dependence relationships in a country. A low PDI stands for a limited dependence between the subordinate and the boss, where the subordinate is likely to contradict the boss. In contrast to that, a high PDI indicates a considerable dependence between a subordinate and the boss. The boss is perceived as an authority. Due to the PDI's medium‐level of the USA, US subordinates tend to need medium‐level dependence needs. A leadership style, involving participative management, developed here. Problems could arise due to the lower PDI score of Germany. Generally speaking, countries with a low PDI tend to have wide spans of control, while countries with a high PDI tend to have narrow span of control. As <xref ref-type="bibr" rid="b32">Glunk <italic>et al</italic>
. (1999)</xref>
 found out, employees in German organizations are relatively autonomous, and furthermore, German workers exercise a greater job discretion than workers in other European states do.</p>
</sec>
<sec><title>(b) Individualism/collectivism</title>
<p>Societies in which the interest of the group prevails over the interest of the individual are collectivist societies and the individuals are expected to look after themselves and the immediate family. Societies in which the individual prevails over the interest of the group are individualist societies and people are integrated from birth on into strong groups, which will protect the individual throughout their lifetimes. Members of individualist societies desire independence from any sort of group affiliation, whereas members of collectivist societies search and value long‐term group ties that are similar to the ties binding an extended family (<xref ref-type="bibr" rid="b82">Triandis, 1993</xref>
). A relationship between national wealth and individualism maintained in a society seems to exist (<xref ref-type="bibr" rid="b40">Hofstede, 1991</xref>
).</p>
<p><xref ref-type="bibr" rid="b81">Tiessen (1997)</xref>
 argued that although individualism may not necessarily preclude interfirm alliances, it may influence how these alliances are conducted (e.g. individualistic oriented CEOs might insist on contract‐based alliances). According to Hofstede, in a more collectivist society, the personal relationship prevails over the task and should be established first; in the individualist society, the task is supposed to prevail over any personal relationship.</p>
<p>The USA obtains the highest score on individualism (91), whereas Germany (FR) scores much lower (67). Both Germany, a fairly collectivist culture, and the USA, an extremely individualist one, are social democracies and have market economies. <xref ref-type="bibr" rid="b88">Weber <italic>et al</italic>
. (1998)</xref>
 support with their findings Hofstede's conclusion that Germany scores much lower on the individualism index than the USA.</p>
<p>Ludwig Ehrhard (Germany's finance minister under Adenauer) indicated Germany's collectivist values by implementing the phrase “social market capitalism”, describing Germany's emerging economy (<xref ref-type="bibr" rid="b88">Weber <italic>et al</italic>
., 1998</xref>
). <xref ref-type="bibr" rid="b51">Kreder and Zeller (1988)</xref>
 concluded that social responsibility and a kind of “family feeling” for the company and its members are emphasized in the German companies, whereas the US companies concentrate on competition and individuality. <xref ref-type="bibr" rid="b54">Lodge (1990)</xref>
 scored the USA highest again on individualism and Germany as being more collectivist oriented, thus supporting Hofstede's findings.</p>
</sec>
<sec><title>(c) Uncertainty avoidance</title>
<p>Societies vary in their tolerance for ambiguity and uncertainty (<xref ref-type="bibr" rid="b39">Hofstede, 1980</xref>
). Uncertainty avoidance is the “extent to which the members of a culture feel threatened by uncertain or unknown situations” (<xref ref-type="bibr" rid="b40">Hofstede, 1991</xref>
). The same environment can be interpreted and responded to in different ways from different cultures, due to a different level of uncertainty avoidance (<xref ref-type="bibr" rid="b72">Schneider and De Meyer, 1991</xref>
). The source of a society's values regarding uncertainty avoidance may be the legal system used during its historical development (<xref ref-type="bibr" rid="b40">Hofstede, 1991</xref>
). Because uncertainty and innovation often go hand‐in‐hand, the tendency to avoid uncertainty may influence entrepreneurial behavior in general (<xref ref-type="bibr" rid="b73">Sexton and Bowman, 1985</xref>
). For example, societies with a high tolerance for uncertainty are thought to be more innovative than societies with a low tolerance for uncertainty (<xref ref-type="bibr" rid="b74">Shane, 1995</xref>
).</p>
<p>Applying statistical methods, Hofstede assigned an index value to each country and the indexes for Germany (FR) and the USA were 65 and 46 respectively. These figures are to be interpreted that Germany with the higher one has a greater need for predictability compared to the USA.</p>
<p>As can be observed, labor‐management relations in Germany are codified in detail (<xref ref-type="bibr" rid="b40">Hofstede, 1991, p. 126</xref>
). German managers show a positive attitude towards trade unions (<xref ref-type="bibr" rid="b28">Eberwein and Tholen, 1993</xref>
). According to Hofstede, the supreme motivators (other things being equal) will be for Germany, security, and for the USA, achievement. Hofstede concluded that Germany belongs to the high uncertainty avoidance countries. Referring to that, he found that “most Germans, for example” favor structured learning situations with precise objectives, detailed assignments, and strict timetables. They like situations in which there is one correct answer, which they can find. “They expect to be rewarded for accuracy” (<xref ref-type="bibr" rid="b40">Hofstede, 1991, p. 119</xref>
). Job descriptions and clear‐cut procedures are of great importance and can often be found in German companies (<xref ref-type="bibr" rid="b15">Barsoux and Lawrence, 1992</xref>
; <xref ref-type="bibr" rid="b78">Stewart <italic>et al</italic>
., 1994</xref>
). According to <xref ref-type="bibr" rid="b60">Olie (1994)</xref>
, German firms obtain a high degree of formalization, and <xref ref-type="bibr" rid="b32">Glunk <italic>et al</italic>
. (1999)</xref>
 state that German managers prefer to work to rules, rather than improvise.</p>
<p>Furthermore, the authorities tend to think in legal terms: in strong uncertainty avoidance countries higher civil servants more frequently have law degrees than where uncertainty avoidance is weak (65 percent in Germany, 3 percent in Great Britain) (<xref ref-type="bibr" rid="b40">Hofstede, 1991</xref>
, p. 127). <xref ref-type="bibr" rid="b51">Kreder and Zeller (1988)</xref>
 examined concepts of control in German and US companies. They found that the German companies perceive co‐ordination systems, such as rules and procedures, as being much more important than these systems are for US companies.</p>
<p>In addition, the degree of closeness of supervision was lower for US companies than for German companies. Also, firm loyalty seems to be higher in Germany than in the USA. While the duration of employment in Germany is on average eight years, only three years are the average of the tenure in American companies (<xref ref-type="bibr" rid="b32">Glunk <italic>et al</italic>
., 1999</xref>
). Also, in German companies, managers often train their own successors, which enhances the continuity of decision making in a company (<xref ref-type="bibr" rid="b32">Glunk <italic>et al</italic>
., 1999</xref>
). To predict national differences in the degree of risk‐taking is of considerable importance for cross‐cultural negotiations, because such differences could provide solutions that are more beneficial for both sides if the same risk attitude would exist (<xref ref-type="bibr" rid="b20">Bontempo <italic>et al</italic>
., 1997</xref>
).</p>
<p>The American employees at Hydrotech and Metalfab were frustrated with the unwillingness of German managers to make decisions without a great deal of analysis (<xref ref-type="bibr" rid="b43">Kanter and Corn, 1994</xref>
).</p>
<p>Previous research, such as the study conducted by <xref ref-type="bibr" rid="b77">Steensma <italic>et al</italic>
. (2000)</xref>
, supports Hofstede's findings. The authors suggest that the higher a country's level of uncertainty avoidance is, the more likely is the company to engage in alliances, due to two reasons. Alliances are believed to be inherently risky (<xref ref-type="bibr" rid="b62">Parkhe, 1993</xref>
), even though the partners can share risk and the firm's risk orientation has shown to influence the attractiveness of technology alliances (<xref ref-type="bibr" rid="b86">Tyler and Steensma, 1998</xref>
). Small independent manufacturing enterprises and their technology alliance formation were examined by <xref ref-type="bibr" rid="b77">Steensma <italic>et al</italic>
. (2000)</xref>
 and they found that technology alliances were pursued more heavily in uncertainty avoiding countries when technological uncertainty increased. In countries which are more tolerant regarding uncertainty, the small manufacturing enterprises dealt with the technological uncertainty without engaging in alliances.</p>
</sec>
<sec><title>(d) Masculinity/femininity</title>
<p>Hofstede further distinguishes among countries in terms of their masculinity, which refers to the overall “toughness” and competitiveness of a society. The people from feminine countries tend to be less aggressive and more modest than those from masculine countries.</p>
<p>On the masculinity index, the USA (62) scored only slightly lower than Germany (66). Societal differences in masculinity are likely to influence the attractiveness of technology alliances. The feminine cultures are accepting co‐operation and the potential for mutual gains. Alliances are typically viewed as “win‐win” situations and co‐operation is emphasized. Both partners can be winners and coexist, whereas partners coming from masculine oriented societies act only in terms of losers and winners. National culture directly and indirectly affects the formation of technology alliances (<xref ref-type="bibr" rid="b77">Steensma <italic>et al</italic>
., 2000</xref>
). Both Germany and USA are masculine oriented cultures. The study conducted by <xref ref-type="bibr" rid="b43">Kanter and Corn (1994)</xref>
 sustains the finding that Germany and the USA do not differ significantly on that scale.</p>
<p>Having discussed the four value dimensions, the influences of the cultural traits can be seen in <xref ref-type="fig" rid="F_0540160101001">Figure 1</xref>
.</p>
</sec>
</sec>
<sec><title>Limitations of Hofstede's findings</title>
<p>Nevertheless, the data gathered by Hofstede in his famous IBM study are the basis for several academic research studies (<xref ref-type="bibr" rid="b50">Kogut and Singh, 1988</xref>
; <xref ref-type="bibr" rid="b64">Pillai <italic>et al</italic>
., 1999</xref>
; <xref ref-type="bibr" rid="b32">Glunk <italic>et al</italic>
., 1999</xref>
, <xref ref-type="bibr" rid="b52">Kuchinke, 1999</xref>
), Hofstede's findings are limited. The data were collected between the 1960s and early 1970s, thus the probability of changed scores along the “values“ is present, due to different social, economic, political, and technological conditions (<xref ref-type="bibr" rid="b52">Kuchinke, 1999</xref>
).</p>
</sec>
<sec><title>Entry modes</title>
<p>Differences among countries concerning entry modes (joint venture, acquisition, greenfield sites) have been observed by several authors (<xref ref-type="bibr" rid="b30">Franko, 1976</xref>
; <xref ref-type="bibr" rid="b79">Stopford and Haberich, 1978</xref>
; <xref ref-type="bibr" rid="b81">Tiessen, 1997</xref>
; <xref ref-type="bibr" rid="b90">Wilson, 1980</xref>
). <xref ref-type="bibr" rid="b50">Kogut and Singh (1988)</xref>
 calculated an index out of Hofstede's findings from all four values in order to estimate the cultural distance between countries. The authors found slight support from their study that the more culturally distant the country of the investing firm from the USA was, the more likely was the engagement in a joint venture. Their study provided very strong support to their hypothesis that the more uncertainty avoiding a culture tended to be, the less attractive is the acquisition mode due to the risks inherent when integrating foreign management into the company and the more attractive is the joint venture or greenfield mode.</p>
<p>The formation of a joint venture can be influenced by cultural differences of the origins of the companies involved. According to <xref ref-type="bibr" rid="b37">Hennart (1998)</xref>
, the greater the cultural differences between two countries are, the more likely does a foreign investor feel the need for a joint venture partner who can deal with a different environment and who can perform some of the cultural sensitive tasks, such as dealing with the employees, and dealing with government regulations.</p>
</sec>
<sec><title>Limitations</title>
<p>Culture in general, and in particular as measured by Hofstede, might not be powerful enough to explain success or failure of strategic alliances. Other factors, such as competition, political constraints, tax situation might have at least the same influence on the alliance. Educational experiences, for example, can erase or minimize cultural differences, and more similar values can be found within the same profession, consisting of different nationalities, as in different professions, each consisting of the same culture (<xref ref-type="bibr" rid="b59">Myers and Kanter, 1992</xref>
).</p>
<p>The findings of <xref ref-type="bibr" rid="b57">McLean and Johansen (1997)</xref>
 lead to the conclusion that research on organizational culture is presently unable to establish clear links to firm performance. According to <xref ref-type="bibr" rid="b52">Kuchinke (1999)</xref>
, applying Hofstede's findings to an untested population is an “unwarranted overgeneralization”. Despite that, Kuchinke found in his study that cultural values vary substantially within a country's population, which means that nations might not be the most appropriate level of analysis for the study of culture.</p>
</sec>
<sec><title>Conclusion</title>
<p>The discussion has shown that literature supports both hypotheses. The first hypothesis, “Research shows that national and organizational cultural differences influence the engagement in strategic alliances in general” was supported especially by the findings of <xref ref-type="bibr" rid="b77">Steensma <italic>et al</italic>
. (2000)</xref>
. The second hypothesis, “Hofstede's four ‘value’ dimensions model explains national and organizational cultural differences between Germany and the US sufficiently” is also supported by literature (for example, <xref ref-type="bibr" rid="b52">Kuchinke, 1999</xref>
). Research shows that transferring the typical German organizational culture has not been considered easily transferable to other countries, for example into the USA (<xref ref-type="bibr" rid="b32">Glunk <italic>et al</italic>
., 1999</xref>
).</p>
<p>Thus, the article shows that strategic alliances and joint ventures in particular are influenced by national and organizational culture and that this culture can be measured in the case of German vs US culture on the “value” dimensions from Hofstede as described in this study. This paper indicates that strategic alliance engagements are highly influenced by the culture of the firms' origin. Even if other factors influence the formation of strategic alliances as well, managers have to keep in mind that, when planning to enter a strategic alliance, cultural differences can hinder success. Especially in a German/American setting, distinctive cultural differences were shown in this study by using the culture traits of Hofstede. Managers should definitely understand that culture is difficult to change and that the construction of the strategic alliance should be changed in order to fit the culture rather than doing it vice versa.</p>
</sec>
<sec><fig position="float" id="F_0540160101001"><label><bold>Figure 1<x> </x>
</bold>
</label>
<caption><p>The influence of the four value dimensions on strategic alliances between German and American companies</p>
</caption>
<graphic xlink:href="0540160101001.tif"></graphic>
</fig>
</sec>
</body>
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<mods version="3.6"><titleInfo lang="en"><title>The strategic alliances between the American and German companies</title>
<subTitle>A cultural perspective</subTitle>
</titleInfo>
<titleInfo type="alternative" lang="en" contentType="CDATA"><title>The strategic alliances between the American and German companies</title>
<subTitle>A cultural perspective</subTitle>
</titleInfo>
<name type="personal"><namePart type="given">Khaled</namePart>
<namePart type="family">Abdou</namePart>
<affiliation>Department of Economics and Finance, School of Business, University of New Orleans, New Orleans, Louisiana, USA</affiliation>
<role><roleTerm type="text">author</roleTerm>
</role>
</name>
<name type="personal"><namePart type="given">Simone</namePart>
<namePart type="family">Kliche</namePart>
<affiliation>School of Business, University of Cologne, Cologne, Germany</affiliation>
<role><roleTerm type="text">author</roleTerm>
</role>
</name>
<typeOfResource>text</typeOfResource>
<genre type="review-article" displayLabel="review-article"></genre>
<originInfo><publisher>Emerald Group Publishing Limited</publisher>
<dateIssued encoding="w3cdtf">2004-02-01</dateIssued>
<copyrightDate encoding="w3cdtf">2004</copyrightDate>
</originInfo>
<language><languageTerm type="code" authority="iso639-2b">eng</languageTerm>
<languageTerm type="code" authority="rfc3066">en</languageTerm>
</language>
<physicalDescription><internetMediaType>text/html</internetMediaType>
</physicalDescription>
<abstract lang="en">In the current situation of the global economy, engaging in strategic alliances depends upon several factors in which the national and organizational cultures of the companies are involved. This paper discusses the cultural differences between the German and the American culture by applying Hofstede's value dimension system and how these differences affect the formation of strategic alliances and outcomes. Furthermore, the paper examines whether literature sustains the fact that Hofstede's value model can be used to sufficiently distinguish between the German and the American culture.</abstract>
<subject><genre>keywords</genre>
<topic>Strategic alliances</topic>
<topic>National cultures</topic>
<topic>Globalization</topic>
<topic>Germany</topic>
<topic>United States of America</topic>
</subject>
<relatedItem type="host"><titleInfo><title>European Business Review</title>
</titleInfo>
<genre type="journal">journal</genre>
<subject><genre>Emerald Subject Group</genre>
<topic authority="SubjectCodesPrimary" authorityURI="cat-STGY">Strategy</topic>
<topic authority="SubjectCodesSecondary" authorityURI="cat-IBUS">International business</topic>
</subject>
<identifier type="ISSN">0955-534X</identifier>
<identifier type="PublisherID">ebr</identifier>
<identifier type="DOI">10.1108/ebr</identifier>
<part><date>2004</date>
<detail type="volume"><caption>vol.</caption>
<number>16</number>
</detail>
<detail type="issue"><caption>no.</caption>
<number>1</number>
</detail>
<extent unit="pages"><start>8</start>
<end>27</end>
</extent>
</part>
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<identifier type="istex">F2CC6433C8D8C6D15949B6A654C90BE2710F679E</identifier>
<identifier type="DOI">10.1108/09555340410512385</identifier>
<identifier type="filenameID">0540160101</identifier>
<identifier type="original-pdf">0540160101.pdf</identifier>
<identifier type="href">09555340410512385.pdf</identifier>
<accessCondition type="use and reproduction" contentType="copyright">© Emerald Group Publishing Limited</accessCondition>
<recordInfo><recordContentSource>EMERALD</recordContentSource>
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The strategic alliances between the American and German companies

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