ABSTRACT
This chapter discusses the different types of ambiguity and highlights the significant cultural gap between the mindset of the foreign investor and the potential Indian partner. It shows the significance of effective communication between the partners and suggests that flexibility is critical if the foreign investor and the local partner are to overcome the challenges posed by ambiguity. The chapter examines how a European company– Pima–used a distribution alliance to enter the Indian market. It presents a case study to demonstrate how a lack of competence in the managing ambiguity art can be detrimental to the business and provides useful insights that we believe continue to be still relevant. Distribution for Pima's products was also underdeveloped, both in quantity and quality in India. They eventually settled on a southern Indian, privately held company with its own production facilities for some – non-competitive – household products as well as pharmaceuticals.
