The model alliance of Renault and Nissan : How to work successfully with overseas partners

Purpose – Contends that, despite growing globalization, too many organizations are not putting sufficient thought or resources into dealing with differences in communication, attitudes, work practices and behavior when dealing with colleagues and counterparts from different cultures. Design/methodology/approach – Highlights some of the problems that arose in a joint venture between a German and Japanese organization, and contrasts these with the successful alliance between the French vehicle manufacturer Renault and its Japanese partner, Nissan. Argues that different types of cross‐border deals require different solutions, and outlines some suggested approaches. Findings – Advances four key stages to dealing with cross‐cultural differences: know yourself; understand the factors that have determined what your counterparts in different countries regard as the norm; know how you are seen by others; and learn to adapt, while remaining true to your own values. Practical implications – Provides plenty to interest anyone involved in a cross‐border merger, alliance or joint venture. Originality/value – Shows that millions of dollars are lost unnecessarily every year because mergers collapse, valuable tenders are lost, international teams cannot work together and countless other misunderstandings and conflicts arise from barriers of culture, language and set patterns of thinking.