Department of Business studies
Management of International Business
FINS Report
Government of Tropicalia
Team-Members:
Christian Blum
Dominik Hungen
Table of contents:
1. Introduction
2. Foreign Market Entry Modes and their consequences for the negotiations during FINS
3. (Inter-)Organizational Learning and Knowledge Transfer supported by a government
4. Trust and opportunism in strategic alliances
* Theory * Trust and opportunism during the FINS
5. Conclusion
References Figure 1 Figure 2 Appendix
1. Introduction:
During the ”Foreign Investment Negotiation Simulation” (FINS) we have met a lot of interesting and important issues a company has to concern about by acting in an international environment. As we represented the government of Tropicalia we were obviously in a somehow particular position. We had to follow the goals of a government, which can differ quite a lot from the goals of private companies: Rather than financial goals as the main issue (even though this obviously also is of certain importance), we had to deal with tasks like creating labour, technology transfer and free-trade agreements. Nevertheless we also had to consider the position of the companies and thereby we were compelled to deal with their main issues. Before starting negotiation talks with a company we had to guess what will be their strategies so that we could develop our own strategies to get the best possible outcome.
In our paper we are going to discuss one of their key-issues and how it affected our negotiation-strategy: foreign market entry modes. We furthermore will discuss opportunism and the development of trust during the FINS and our strategy of promoting knowledge transfer from to multinational companies (MNCs) to the Tropicalian companies.
In the appendix the reader can furthermore find a protocol of our negotiation
References: Das, T. K., and Bing-Sheng Teng (1998). “Between Trust and Control: Developing Confidence in Partner Cooperation Alliances.” Academy of Management Review 23(3): 491-512 Dyer, Jeffrey H., and Harbir Singh (1998). “The Relational View: Cooperative Strategy and Sources of Interorganizational Competitive Advantage.” Academy of management review 23(4): 660-679 Hamel, Gary (1991). “Competition for Competence and Interpartner Learning within International Strategic Alliances.” Strategic Management Journal 12: 83-103 Rikard, L. ; Bengtsson, L. ; Henriksson, K. ; Sparks, J. (1998). ”The Interorganizational Learning Dilemma: Collective Knowledge Development in Strategic Alliances.” Organizational Science 9(3): 285-305 Schierenbeck, Henner (2001). “Einfuehrung in die Betriebswirtschaftslehre.“, 15. Auflage, Oldenbourg, 2001.