Article

Cross-cultural negotiation behavioural differences: Domestic-focused versus worldwide-oriented firms

Authors:
To read the full-text of this research, you can request a copy directly from the authors.

Abstract

In this age of the global economy, cross-cultural negotiation is becoming an increasingly important part of the management and marketing process for nearly every firm. Compares the cross-cultural negotiation behaviour and differences in the perceived processes between those firms which consider themselves North American-focused and those firms which report a worldwide or international outlook. Proposes several hypotheses, reports significant differences between the two groups and provides analysis.

No full-text available

Request Full-text Paper PDF

To read the full-text of this research,
you can request a copy directly from the authors.

... Cross-cultural negotiations are made more complicated as a result of a range of factors, such as those relating to environment, language, ideology and customs (Mintu-Wimsatt & Gassenheimer 2000;Hoffmann 2001). Gulbro & Herbig (1995) stated that "when negotiating internationally, this translates into anticipating culturally related ideas that are most likely to be understood by a person of a given culture." A number of authors have demonstrated that culture is one of the most important factors involved in crosscultural negotiation (Hofstede, 1980;Gulbro & Hrbig, 1994;Schein, 1997;Salacuse, 2005). ...
... A number of authors have demonstrated that culture is one of the most important factors involved in crosscultural negotiation (Hofstede, 1980;Gulbro & Hrbig, 1994;Schein, 1997;Salacuse, 2005). Because of the level of sophistication of the knowledge that is required to conduct these exchanges, many negotiators are unsuccessful in reaching agreements as a result of the challenges involved in overcoming cultural differences, as opposed to any economic or legal problems (Gulbro & Herbig, 1995). ...
Article
Full-text available
Despite the implied enthusiasm for increasing global interaction and economic exchange, a lack of understanding of cultural differences has been found to hinder the ability of firms to conduct business or negotiations efficiently with different countries. By means of a thorough examination of the different styles of negotiation between Taiwan and the US, the research herein identifies the effects of culture on negotiations. The approach uses Casse and Deols' model, which considers styles of negotiation and degrees of individualism to be the dependent and independent variables. Data was collected from sales and purchasing managers of public companies listed on the stock exchanges of Taipei and New York by means of an online survey. Structural equation modeling was used to test hypothesized models and the overall hypotheses of the research. A two-step approach was employed in the research that consisted of exploratory factor analysis and confirmatory factor analysis. The findings showed that an individualist attitude directly affects the style of negotiation, that nationality is a moderated variant of individualist attitude and style of negotiation, and that different styles of negotiation are preferred by Taiwanese and American negotiators. These findings could be useful in the application of a specific set of values and attitudes that directly relate to regional cultural attributes. The study may also assist prospective cross-cultural negotiators to develop better negotiation skills by providing insights into the nuances of international negotiations between businesses.
... An understanding of the differences and similarities of each culture by the negotiators is beneficial in facilitating communication and success in negotiation (Gannon, 2001). Due to the sophistication and knowledge required by these exchanges, many negotiators are unsuccessful in reaching agreements because of cultural issues as opposed to economic or legal problems (Gulbro & Herbig, 1995). During these negotiations, both parties must often change their tactics to meet the other party's style. ...
Article
Full-text available
Numerous factors can affect the results of the negotiating process. Successful negotiation not only requires acquiring technical communicative abilities, but also an understanding of the cultural context of the negotiation by both parties. Due to its size and rapid economic development, China has become an increasingly important factor for world economy and growth. Until recently, conducting business in China has been a challenging and sometimes futile venture for businesses trying to break into this lucrative market because China's government has maintained very strict rules for the import of goods and services for resale to China, while widely exporting Chinese goods and services. The approach uses Casse and Deols' model and cultural factors including education, religion and degrees of individualism/collectivism to be the dependent and independent variables. Data were collected from public companies listed on the stock exchanges of China by means of an online survey method. Structural equation modeling was used to test hypothesized models and hypotheses of research. The findings show that education, religion and degrees of individualism/collectivism affects the style of negotiation. These findings could be useful in the application of a specific set of values and attitudes that relate to regional cultural attributes, and develop better negotiation skills by providing insights into the nuances of international negotiations. The researcher suggests that the negotiators still need to be trained in body language, strategies, temper control, international manners, and customs. A better knowledge of negotiation should be helpful in understanding business and in realizing which negotiation styles are most appropriate for a particular country.
Article
By 2039, the economies of Brazil, Russia, India, and China (BRIC) are expected to become wealthier than the current major economic countries. Despite the enthusiasm for increased global interaction and economic exchange with BRIC, many people have found that cultural differences hinder their ability to efficiently conduct business or negotiations given a lack of cultural understanding. This approach used the model by Casse and Deols and individualism as dependent and independent variables. Data were collected from sales and purchasing managers of public companies using an online survey and the snowball sampling method. Structural equation modeling (SEM), the preferable technique for measuring hypothesized models and research hypotheses, was selected. The findings indicated that an individualist attitude directly affected negotiation style, wherein, nationality is a moderated variant of an individualist attitude and negotiation style, and that BRIC negotiators preferred different negotiation styles. Limitations and future studies are discussed.
Article
Suggests that as the global economy becomes more entrenched and the importance of internationalization becomes self evident to US businesses, the number of contacts with foreign agents will escalate. Explores whether it be by buying or selling, the end result often is cross-cultural negotiations. Declares that the most difficult part of any negotiations is the contract, securing the agreement. Examines cross-cultural differences in contracts and agreements and offers various suggestions on how to increase the likelhood of success in a cross-cultural negotiation.
Article
Full-text available
Fifty-six Soviet businesspeople and 160 American businesspeople participated in simulated intracultural, one-on-one, buyer-seller negotiations. All participants completed questionnaires after the negotiation sessions, and six negotiators from each cultural group were videotaped during the interactions. Analysis of the questionnaire data indicated that Soviet negotiators achieved higher individual profits when using a competitive approach in negotiations. This result is in contrast to a more cooperative approach associated with higher profits for the American participants. Analysis of the videotapes suggests both similarities and differences in observed bargaining behaviors across the two cultural groups.
Article
Full-text available
An inductive, holistic method of analysis of face-to-face communication is presented. Simulated business negotiations between Japanese and American businesspeople are videotaped and analyzed to demonstrate the utility of the methods. Briefly, the participants in the negotiations and trained observers review the videotapes and identify focal points (e.g., difficulties in communication) for in-depth analysis. Antecedents and consequences of the focal points are described.
Article
Full-text available
Recent world events have lead to increased political tension between the United States and the Soviet Union. This fact, as well as significant cultural differences between the two nations, complicates U.S.-U.S.S.R. trade negotiations. This article explores the different attitudes of the two nations and considers some of the cultural variables which influence commercial negotiations. Within this context, the authors examine the Soviet licensing process and present a schema, developed by the Soviets, to illustrate the complexity of the negotiating process and show how it reflects the Soviet's cultural values and perspective. The authors contend that commercial negotiations can be improved if American business people overcome their own ethnocentrism and understand their Soviet counterparts within the context of the Soviet environment.
Article
Full-text available
A large number of marketing decisions are based on "expert" judgments. In the emerging field of expert systems, techniques are being developed for systematically representing and using expert knowledge in computer systems. The computerization of marketing expertise will enhance decision support to marketing managers. The authors evaluate the opportunities and difficulties associated with building marketing expert systems by discussing the development of NEGOTEX (negotiations expert), a system that provides guidelines to individuals or teams preparing for international marketing negotiations. Possible benefits of this methodology in other areas of marketing are identified.
Article
Full-text available
Recent studies in Japanese and American negotiating styles are reviewed, and it is found that bargaining behaviours are affected by culture from the beginning of the negotiation process. These differences can be viewed as a set of styles, habits, skills and expectations that might be understood through ethnographic analysis. Once the bases for the differences in negotiation styles are understood, negotiating across cultures may be a more efficient process.
Article
Full-text available
Data from a laboratory experiment involving Japanese and American business people are analyzed using a structural equation model. Measures of the process of marketing negotiations (e.g., social influence strategies, etc.) are found to mediate the influence of cultural variation of the parties (i.e., cross-cultural versus intracultural bargaining) on negotiation outcomes.
Article
Full-text available
International management studies have been based primarily on the comparison of managerial behavior in countries around the world. Often these studies have implied that business people behave similarly with their domestic colleagues as with their foreign counterparts. In questioning that assumption, this study tests whether intra-cultural behavior accurately predicts cross-cultural behavior. Using a negotiation simulation and a sample of 462 Japanese, American, and Canadian businesspeople, behaviors in cross-cultural negotiations were found to differ in some important ways from those in intra-cultural negotiations.© 1989 JIBS. Journal of International Business Studies (1989) 20, 515–537
Article
Full-text available
The processes of business negotiations in three countries, the United States, Japan, and Brazil, are composed and contrasted. Three dyads from each country were videotaped during a buyer-seller negotiation simulation. Both verbal behaviors and nonverbal behaviors were observed and recorded. Observed differences provide the basis for hypothesized differences which might be tested in future work.© 1985 JIBS. Journal of International Business Studies (1985) 16, 81–96
Article
Full-text available
The determinants of the outcomes of business negotiations in 3 cultures are investigated in a laboratory experiment. The outcomes of negotiations between Japanese businessmen result primarily from situational constraint—the role of the negotiator (buyer or seller). Representational (problem-solving oriented) bargaining strategies, a measure of the process of the interaction, is the most important variable in American negotiations. In negotiations between Brazilian business people, deceptive bargaining strategies—also a process measure—is the key variable affecting outcomes.© 1983 JIBS. Journal of International Business Studies (1983) 14, 47–61
Article
Full-text available
This study sought to examine and identify (1) the mechanics of U.S.-China trade negotiations; (2) how a company prepares for such negotiations; (3) the factors that contribute to the success or failure of such negotiations; and (4) the outcomes of such negotiations. Data pertaining to these characteristics were collected from 138 U.S. firms engaged in China trade. Relationships between certain variables, such as extent of preparation for the negotiations, type of programs used, and incidences of success were examined. Based on these results, implications for management were drawn.© 1982 JIBS. Journal of International Business Studies (1982) 13, 25–38
Article
Full-text available
The determinants of business negotiations in three countries are investigated in a laboratory simulation. One hundred thirty-eight businesspeople from the United States, 68 from Mexico, and 148 from Canada (74 Anglophones and 74 Francophones) participated in a two-person, buyer-seller negotiation simulation. The negotiation styles of the Francophone Canadian and the Mexican businesspeople were found to be significantly different from both the American and Anglophone Canadian styles.
Article
The determinants of buyer-seller negotiations in four cultures are investigated in a laboratory simulation. One hundred thirty-eight American, 54 Chinese, 42 Japanese, and 38 Korean business people participated in a two-person, buyer-seller, intracultural negotiation simulation. In negotiations between Americans, the use of more problem-solving bargaining strategies positively influenced negotiation outcomes. In negotiations between Chinese, more competitive strategies led to better results. In Japanese and Korean negotiations, buyers achieved higher economic rewards than sellers. In all four cultures, bargainers were more satisfied with negotiation outcomes when partners were rated more attractive.
Article
In Japan the word for marriage broker, “Nakodo,” is now being widely used to apply to business “brokers” who arrange joint ventures between firms. As detente opens new markets, particularly in the Middle East, Eastern Europe, and China (where Western business executives have had little negotiating experience), an international Nakodo, partial to neither party, can expedite agreements which would otherwise be very difficult and very costly to negotiate. © 1974, The Regents of the University of California. All rights reserved.
Article
The determinants of marketing negotiations in four cultures are investigated in a laboratory simulation. One hundred thirty-eight businesspeople from the United States, 48 from France, 44 from West Germany, and 44 from the United Kingdom participated in two-person, buyer-seller negotiation simulations. The American process of negotiation is found to be different from that of the Europeans in several respects.
Article
Based on measures across a variety of dimensions, this paper reports on the communications and decision-making practices of Japanese firms operating in Japan and the United States compared to American firms operating in the United States. The findings document substantial similarity among these firms. Contrasting Japanese firms in Japan with American firms in the U.S., the findings dispute some of the traditional characterizations of the two management systems. Many similarities were found in the form and volume of communication across the two cultures. Further, contrary to sterotypes, managers of Japanese firms were not found to utilize a consultative decision-making process more extensively than American managers do. From a methodological standpoint, the findings suggest the desirability of first examining cross-cultural phenomena from the vantage point of universalistic organizational theory, and, subsequently, examining the mediating effects of particularistic factors such as culture.
Article
The bargaining behavior of children and adolescents from three cultures on a competitive resource distribution task was examined. Subjects played a game in which they alternated suggestions until they agreed on a distribution. The strongest effects were those obtained for culture. Indian bargainers negotiated longer, were more competitive, were more symmetrical in their competitiveness, and had larger discrepancies in their settlements than did either the Argentineans or the Americans. Americans were most compromising in their trial-by-trial offers and in their final outcome, suggesting a convergent bargaining style. Additional data suggest that the bargaining differences may reflect differences among the cultures in their general orientations, with Indians emphasizing both competitiveness and need derived from a “view of the world” that is based on scarcity or limited resources. Other findings indicate that the effects of age, sex, and experimental condition vary among cultures. An age effect was obtained only in India, where older bargainers negotiated longer and rejected a higher proportion of their opponent's offers than did younger bargainers. Male bargainers were more competitive than females in India and the United States, but a trend in the opposite direction was obtained for Argentinean bargainers. And a different pattern of condition effects for length of negotiations was obtained for the three cultures.
Article
The determinants of the outcomes of business negotiations in two cultures are investigated in a laboratory experiment. The most important causal factor in Japanese negotiations was found to be the role (i.e., buyer or seller) of the negotiator. Japanese buyers consistently achieved higher bargaining solutions than Japanese sellers. The primary causal factor in negotiations between Americans was the information content of bargaining strategies. Americans to whom bargaining partners gave information more freely achieved higher bargaining solutions.
Article
This article reports the findings of a questionnaire survey of U.S. firms that have entered into contractual agreements with China for various forms of trade relations since 1979. Specifically, information was gathered on the following: the history of the company's trade relationships with China, the conduct of business negotiations, the company's satisfaction or dissatisfaction with the negotiations, perceived differences in the decision-making and negotiation styles of the Chinese negotiation team vis-à-vis the American team, the success rate of such negotiations, factors that accounted for the success or failure of such negotiations, and an assessment of programs that help firms prepare for the negotiations. These findings are compared with an earlier (1982) study by R.L. Tung on United States-China business negotiations. Implications, both practical and theoretical, for international business negotiations are also discussed.
Article
This article analyzes the negotiations between Swedish firms, as sellers, and firms in India and Nigeria as buyers. The two cases with developing countries as buyers are compared with a case within Sweden, where both the buyer and the seller came from Sweden. The role of the respective government and environmental differences emerge as factors on the process of negotiation itself.
Article
This article discusses examples of cultural differences between the German and Australian cultures, their implications in the marketing and business decision making function, and provides recommendations for successful business conduct between Germans and Australians. © 1995 John Wiley & Sons, Inc.
Article
The potential for error when individuals from different cultures talk together is considerable. Many negotiations have failed due to cross-cultural communications breakdown. In this article we detail pitfalls to avoid when undertaking cross- cultural negotiations.
Article
The process of negotiation in Japan differs from that typical in America. Americans must adapt their approach to establishing a rapport, information exchange, persuasion, and concession making if they are to be successful in dealing with Japanese clients and partners. Specific recommendations in this vein are offered.
Article
The characteristics of cross-cultural negotiation in the Asian context are reviewed. Findings are presented concerning an exercise in negotiation in an executive development programme in which participants were to develop a strategy of marketing a computer system to a bank. The two basic strategies of negotiation – instrumental and collaborative – are compared.
Article
Examines the relationship and importance of cross-cultural negotiations to successful international marketing activities. Provides examples of differing cross-cultural behaviour, and its potential impact on multinational (multi-cultural) negotiations and hence on international marketing success or failure.
Article
Explains that American managers often find negotiating with their Japanese counterparts extremely difficult and frustrating due to a lack of understanding of the Japanese negotiation style in particular and of the Japanese language and culture in general. Describes key features of the Buyer/Seller relationship as it is in Japan's “vertical” society, later explaining the four stages of Japanese negotiation and post-negotiation formalities. Emphasizes that Americans must not try to negotiate using their own negotiation practices, since this will make Japanese feel unduly pressured and the negotiations will be unsuccessful -success can only come if Americans learn to operate within the Japanese culture.
Article
Environmental determinants of International Business Negotiations: A Strategic Planning Model Negotiation is a skill which can be learned. Most American and Western executives do not, however, devote sufficient time or effort to learn the art of negotiation or to understand the cultural differences among nations. The accelerating interdependency among global societies and the growing role of U.S. and Western countries in international trade, especially with Third World governments, strongly necessitate learning, experience, and training in this important task. True understanding of environmental determinants, styles, and tactics of international business negotiations is a must, if one is to achieve desirable outcomes. The old attitude of bargaining overseas and the John Wayne approach will not work anymore. “Go native” and “adaptibility” will be the key words for successful international business negotiations in the future.
Article
Treating negotiations as a technique which can be learned and adapted to international business, this article takes a problem solving approach and endeavors to provide some guidelines for successful negotiating. It addresses the different stages of the negotiation process and provides a strategic planning model for negotiations.
Article
The art of negotiation has been explored in a number of bestsellers over the last decade. With the advent of a truly global economy, international and cross-cultural relationships are forming out of necessity. The potential for error when talking between cultures is considerable and many negotiations have failed owing to cross-cultural communications breakdown. Pointers are presented of the pitfalls to watch out for when undergoing cross-cultural negotiations and how to avoid them so as successfully to complete agreements with those from other cultural backgrounds.