Managing human resources in cross-border alliances

Across the world, companies are forming some of the most complex and exciting collaborations in the business world: cross-border alliances (CBAs). Yet while this offers multinational companies a way into the global marketplace, there is no guarantee of success.

This book looks at the business and human resource issues arising in these complex collaborations, putting forward the case that the handling of these issues can determine the CBA's success. The book takes readers through the two main kinds of CBA - International Joint Ventures (IJV), and International Mergers and Acquisitions (IMA) - explaining how each type works and which human resource issues will arise. As well as analyzing these issues and explaining the relevant management, economics and sociological theories, this impressive text uses short end-of-chapter case studies and in depth end-of-text case studies to provide numerous practical examples.

The first major textbook that seriously studies human resource issues in a CBA context, this book offers both students of human resource / international business and practicing human resource professionals alike the frameworks for truly understanding the complexities of the area.

Author Notes

Randall S. Schuler is Professor of Human Resource Strategy and Director of the MHRM Program at Rutgers University, and is Research Associate at the Graduate School of Business Administration Zurich
Susan E. Jackson is Professor of Human Resource Strategy and Director of the Doctoral Program in Industrial Relations and HR at Rutgers University, and is Research Associate at the Graduate School of Business Administration Zurich
Yadong Luo is Professor of Management in the Department of Management at the University of Miami

List of illustrations	p. ix
Foreword	p. xi
Preface	p. xiii
List of abbreviations	p. xv
1 Managing human resources in cross-border alliances	p. 1
Strategic alliances among firms	p. 2
Human resource management	p. 6
The multiple stakeholder model	p. 9
Theoretical perspectives for understanding HRM in IJVs	p. 14
Overview of chapters	p. 19
Conclusion	p. 20
2 International joint ventures	p. 22
Ownership structures	p. 23
The importance of international joint ventures	p. 25
Challenges and risks associated with building IJVs	p. 28
Reasons for forming an IJV	p. 30
Basic assumptions made about IJVs	p. 34
Failure rates of IJVs	p. 34
Criteria for success and failure	p. 35
Four-stage model of IJVs	p. 36
Conclusion	p. 62
Case example: Fujitsu in Spain: barriers to alliance management	p. 63
3 Managing human resources in international joint ventures	p. 64
Guidelines for managing human resources in IJVs	p. 65
Conclusion	p. 75
Case example: HR challenges in the IJVs at Rolls-Royce PLC	p. 76
4 International mergers and acquisitions	p. 79
Types of international mergers and acquisitions	p. 81
Reasons for international mergers and acquisitions	p. 82
Track record	p. 83
Reasons for failure	p. 84
Reasons for success	p. 85
Three-stage model of mergers and acquisitions	p. 86
Conclusion	p. 94
Case example: Strategic partnership at DaimlerChrysler	p. 95
5 Managing human resources in international mergers and acquisitions	p. 96
Managing HR issues during Stage 1 (pre-combination) of IM&As	p. 97
Managing HR issues during Stage 2 (combination and integration) of IM&As	p. 104
Managing HR issues during Stage 3 (solidification and assessment) of IM&As	p. 112
Conclusion	p. 116
Case example: Mergers and acquisitions of and by Deutsche Bank	p. 116
6 Managing cultural diversity in cross-border alliances	p. 119
National cultures	p. 120
Industry culture	p. 120
Organizational cultures	p. 121
Understanding how cultural diversity influences behavior	p. 123
Guidelines for managing cultural diversity in cross-border alliances	p. 133
Conclusion	p. 140
Case example: Terra-Lycos	p. 141
7 Managing cooperation, control, structure, and exit in cross-border alliances	p. 143
Cooperation	p. 143
Control	p. 153
Structure	p. 156
Thinking ahead: exit as a natural outcome of IJVs	p. 158
Conclusion	p. 164
Case example: Dynamic collaborations between Westinghouse and Mitsubishi	p. 165
8 Cross-border alliances and the HRM profession	p. 169
Roles for HR professionals	p. 170
Competencies needed by HR professionals	p. 172
Guidelines for HR professionals involved in cross-border alliances	p. 173
Conclusion	p. 175
Case example: The new HR roles at Deutsche Bank	p. 176
Appendix A The international joint venture of Davidson-Marley BV	p. 177
Appendix B Precision Measurement of Japan: A small foreign company in the Japanese labor market	p. 213
Bibliography	p. 222
Internet resources	p. 240
Index	p. 242

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