Putting Local Knowledge to Work in International Markets: The Valuable Role of the Impartial Third Party Negotiator

Abstract

The objective of this paper is to analyze how deep familiarity with an industry can be made essential for successful globalization. The main actor analyzed in this paper, Kinji Moriyama, was a photography 'maniac' who used proven negotiation and diplomatic skills to help smooth the path to mutually-beneficial globalization of the photography industry over the post-WWII. Moriyama's deep knowledge of the photography industry won him the confidence of industry leaders. Later, Moriyama was appointed director of a third-party non-governmental organization, the JCII, charged with inspecting exported photography goods. Over the years, he put his negotiation and diplomacy skills to use in efforts to expand exports to the United States and European markets. In this paper, extensive data on the photography industry is employed to develop a theoretical framework from the negotiation, strategy and management literature. The key finding is that local knowledge of the industry, in this case Moriyama's deep familiarity with the industry, was fundamental to the smooth growth and globalization of the industry. The main lesson for management is that skilled - and impartial - allies can play a vital role in helping to avoid costly disputes thereby providing benefits to many.

Keywords: local knowledge, international business, mediation, third party, negotiation, photography industry, non-governmental organizations

JEL Classification: C70, F23, L30, L63, N85