Conflict Management in German-Russian Joint Ventures

Studienarbeit , 2008 , 54 Seiten , Note: 1,4

Politik - Region: Russland

The German-Russian foreign trade has been doubled since the year 2000 to 50
billion Euros. According to the Ost-Ausschuss of the German Economy (Deutsche
Wirtschaft) this positive trend will continue during the next years. German
companies are planning investments accounting to 1.4 billion Euros in the Russian
market and as well Russian firms are going to invest in Germany.
Russia is not only the biggest country in the world but also richest in commodities.
Furthermore, it is also one of the fastest growing economies in the world with a
geographical closeness to Germany. This should be reason enough for the
German companies to invest in the Russian market and reversely. Next to
exporting and licensing the entity form of joint ventures represents a good strategy
for entering the foreign market. The hosting partner will deliver the knowledge and
technology and the home partner will offer experience in the market, meaning
awareness of cultural differences, political regulations and potential conflicts.
Nevertheless, joint ventures are also starting points for conflicts that may
endanger the success of the business. This paper deals with the conflict
management of joint ventures that have been coordinated by German and
Russian firms.
At first the terms conflict management and joint venture will be defined followed by
an introduction to the two countries Germany and Russia. At the second stage
different starting points for conflicts will be determined. Examples of these are the
differences in culture, the restrictions and regulations for entering the Russian
market and opinions of experts on joint ventures with Russia. Due to the lacking of
direct information on conflict management of actual joint ventures, two successful
joint ventures will be presented. Occurred and potential conflicts will be
determined. With help of these conclusions will be drawn upon the management of
conflicts which most often leads to success in business. To complete the paper
lessons learnt for more Russian joint ventures will be pointed out.

Table of Contents

Executive Summary

Table of Contents

List of illustrations

List of tables

List of Abbreviations

1 Problems and Objectives of the topic

2 Clarification of important terms being used
2.1 Conflict Management
2.2 Joint Ventures
2.3 The Russian Federation
2.4 Federal Republic of Germany

3 Analysis
3.1 Cultural comparison of both countries based on Hofstede
3.1.1 Individualism versus collectivism
3.1.2 High versus low power distance
3.1.3 High versus low uncertainty avoidance
3.1.4 Masculine versus feminine
3.2 Historical development of Russian job involvement
3.3 Transformation of Russian law principles
3.4 Internal stability conditions of JVs
3.5 Empirical study of JVs in Russia

4 Selected examples of German-Russian JVs
4.1 Nord Stream AG
4.1.1 Importance of Russian Gas for Europe
4.1.2 Organisation of Nord Stream AG
4.1.3 Motivation of both sides to enter the Nord Stream JV
4.1.4 Possible conflicts between the participants of the JV
4.1.4.1 Increased Russian leverage on non-connected countries
4.1.4.2 Increased Russian leverage on connected countries
4.1.4.3 Domestic Energy Concerns
4.1.4.4 Risk of Appeasement
4.1.4.5 Regional and Intra-EU Frictions
4.1.4.6 Dependence on scarce resources
4.2 Mobile TeleSystems OJSC
4.2.1 General information
4.2.2 Shareholder structure and historical development
4.2.3 Breaking up of the international JV and consequences
4.3. AFK Sistema as a special partner for Russian-German JVs

5 Lessons Learnt

List of Literature

Electronic sources for Literature

• Hochschule: Duale Hochschule Baden-Württemberg Mannheim, früher: Berufsakademie Mannheim
• Veranstaltung: International Seminar
• Note: 1,4
• Autoren: A. Rademacher (Autor:in), K. Zimmer (Autor:in), J. Laubner (Autor:in), A. Payarolla (Autor:in)
• Erscheinungsjahr: 2008
• Seiten: 54
• Katalognummer: V160361
• ISBN (eBook): 9783640768479
• ISBN (Buch): 9783640768929
• Sprache: Englisch
• Schlagworte: Conflict, Management, German-Russian, Joint, Ventures