Guidelines of Foreign Partner Selection in the USSR

This working paper is one of a series produced by TES-MTC project discussing the problems of East-West Joint Ventures located in the CMEA countries on a country basis. The share of joint ventures as the latest form of economic relations between CMEA countries and market-economy countries is increasing rapidly. Managers and policy-makers in state governmental organizations are now trying to overcome various problems arising during the process of partner selection, negotiation and operation of joint ventures. The problem of partner selection, for example, has already become evident in the many countries' experience. To address the rapidly increasing number and complexity of offers from both Eastern and Western potential partners calls for creating a special methodology and practical procedures for this activity. In many countries, a lack of information about potential partners and of established contacts has also contributed to the problematic situation. In order to resolve this practical problem, the All-Union Institute for External Economic Affairs has developed a methodology to help Soviet companies identify and select the right partner for a joint venture. This working paper describes step-by-step the procedure through which Soviet companies can select the appropriate partner for joint ventures or projects. The methodology is based on the assumption that one of the most effective tools for choosing a joint venture partner is the international tender. This creates a competitive environment for partner selection and presents an opportunity to attract various Western companies as potential partners. The Management of Technological Change (MTC) project, part of the Technology, Economy and Society Program, has as one of its objectives to disseminate new relevant information about solutions generated in various countries concerning the practice of joint ventures. The working paper of Dr. Soloviev is among the first papers to serve that objective. It should be noted that the elaborated methodological procedure for partner selection is recommended not only for business organizations, but also for policy-makers from different governmental agencies, such as the Ministry Council of the Soviet Union, as well as for various ministries and other organizations making decisions concerning the creation of joint ventures