The Evolution Process of Cooperation between Samsung and Nissan over Samsung Motors Inc.

What factors promote effective cooperation between partner companies an IJV? And how does such cooperation at the corporate level emerge over time? This paper investigates the relationships between partner objectives,ownership and control, task complexity, differences in organization structure and procedure and trust dynamics. The study adopted an ethnographic approach, employing participant observation, interview and document analysis, in order to provide thick descriptions through a deeper understanding of the actual interaction between companies. This research involved longitudinal in-depth immersion in the field so as to uncover the tacit nature of causal relationships and processes. Although the fieldwork seemingly focused on a single company, the study involved the examination of inter-company cooperation amongst Samsung, Nissan, and Renault, comparisons between New Product Development (NPD) projects. Thus, this study draws on multiple qualitative research methods in order to produce a holistic analysis and raise the validity of the empirical findings. Several results help to shed light on the theories of trust and cooperation and their application to inter-firm alliances. The empirical findings are as follows: First, the identification of complementary capabilities at the start is a necessary but not a sufficient condition for partner companies to achieve effective cooperation in an International Joint Venture (IJV). In practice, it is important to give regard to developing a culture of reciprocity and mutual learning so as to sustain long-term, effective cooperation. Further, ownership and control of an IJV have a direct impact on cooperation, through which an IJV becomes similar to its parent companies in organization structure and processes. Nevertheless, the relationship between Nissan and Samsung exemplifies the fact that equity ownership is not a necessary condition for effective cooperation. Second, the developing of trust is critical for effective cooperation. Developing a new cooperation process is necessary because it becomes the basis of the building of trust. Corporate-level commitment and learning play an important role in developing inter-firm trust. Corporate commitment originates from inter-personal relationships and enables trust between functions to emerge. Trust between functions may continue even when inter-company trust is weakened if learning and informal human relationships are maintained. Third,despite the effectiveness of concurrent technology transfer, the organizational capabilities of an IJV are necessary for the implementation of such transfer. The selection of a manageable base platform and the inducing of support from partner companies are prerequisites for an IJV to be successful. Similarity in organization structure and processes between parent companies and an IJV has a positive impact on cooperation.