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The relationship between cultural values, cultural intelligence and negotiation styles

DOI:10.1016/j.jbusres.2019.02.011
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Andrea Caputo at University of Trento and University of Lincoln
Andrea Caputo
  • University of Trento and University of Lincoln
Oluremi B Ayoko
Oluremi B Ayoko
Oluremi B Ayoko
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Nii Amoo at Leeds Beckett University
Nii Amoo
Charlott Menke at Fraunhofer-Gesellschaft zur Förderung der angewandten Forschung e.V.
Charlott Menke
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Abstract

Working environments become increasingly culturally diverse and managers, employees and people at large are often required to engage in cross-cultural negotiations. In this regard, it becomes important for negotiators to develop the ability to recognize cultural differences and adapt their negotiation styles to the cultural contingencies they face. This study examines the influence of cultural intelligence on the relationship between cultural values and the individual preferences for a given negotiation style. Our results show that cultural values (e.g. power distance, uncertainty avoidance, collectivism and masculinity) have a direct influence on negotiation styles as well as an indirect effect, which is mediated through cultural intelligence. The study highlights the importance of cultural values and cultural intelligence on negotiation styles and contributes to the research and practice of negotiations.
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The relationship between cultural values, cultural intelligence and negotiation styles
Published in the Journal of Business Research 99 (2019) 23-36
DOI: https://doi.org/10.1016/j.jbusres.2019.02.011
Andrea Caputo (Corresponding author)
University of Lincoln, Lincoln International Business School
Brayford Pool, LN6 7TS Lincoln, United Kingdom
acaputo@lincoln.ac.uk
ORCID: 0000-0003-2498-182X
Oluremi B. Ayoko
The University of Queensland, UQ Business School
39 Blair Dr, St Lucia QLD 4067, Australia
r.ayoko@business.uq.edu.au
Nii Amoo
Leeds Business School
Leeds Beckett University
The Rose Bowl, Portland Gate, LS1 3HB, Leeds, United Kingdom
n.amoo@leedsbeckett.ac.uk
Charlott Menke
Otto-von-Guericke University
Universitätspl. 2, 39106 Magdeburg, Germany
charlott.menke@ovgu.de
Abstract
Working environments become increasingly culturally diverse and managers, employees and
people at large are often required to engage in cross-cultural negotiations. In this regard, it becomes
important for negotiators to develop the ability to recognize cultural differences and adapt their negotiation
styles to the cultural contingencies they face. This study examines the influence of cultural intelligence on
the relationship between cultural values and the individual preferences for a given negotiation style. Our
results show that cultural values (e.g. power distance, uncertainty avoidance, collectivism and masculinity)
have a direct influence on negotiation styles as well as an indirect effect, which is mediated through cultural
intelligence. The study highlights the importance of cultural values and cultural intelligence on negotiation
styles and contributes to the research and practice of negotiations.
Keywords: cultural values, cultural intelligence, negotiation styles, competition, cooperation,
cultural differences
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Authors Biographies
Andrea Caputo is Reader in Strategy & Entrepreneurship at the Lincoln International Business School
(UK) and member of the UNESCO Chair on Responsible Foresight for Sustainable Development. He
received his PhD in Management from the University of Rome Tor Vergata. He has also been a Visiting
scholar at the University of Queensland Business School, at The George Washington School of Business,
the University of Sevilla, the University of Alicante, and at the University of Pisa. His main research
interests are related to entrepreneurship, negotiation, decision-making, and strategic management. He
published more than 40 papers in several international journals, including JBR, BPMJ, EBR, IJEBR and
IJCMA among others.
Oluremi B. Ayoko is Associate Professor of Management in the UQ Business School at the University of
Queensland, Australia. Remi's principal research interests include conflict management, emotions,
leadership, diversity, team work and employee physical work environment and territoriality. The results of
her cutting-edge research have been presented in several international and national conferences. Remi is an
award-winning researcher and has published in journals such as JOB, APIR, IJCMA, and SGR. She has
also written many book chapters and co-edited a Handbook of Conflict Management Research (Edward
Edgar Publishers). Remi is an Associate Editor of the Journal of Management and Organization.
Nii Amoo is Senior Lecturer at Leeds Beckett University. He received his PhD in Management from the
Leeds University Business School. His research interest are in strategy and leadership with emphasis on
implementation, SMEs and Family Businesses. His research work has been presented in a number of
international conferences including the BAM and the AOM. Nii’s work has been published in a number of
international journals, including the Journal of Management Inquiry (JMI), Journal of Business Research
(JBR), Energy Economics (EE), International Journal of Sustainable Strategic Management (IJSSM), and
Management Control. He is also an Article Editor for Sage Publications.
Charlott Menke is a PhD Student at Otto-von-Guericke University in Germany. Her research focuses on
negotiation as well as individual-level and country-level determinants of different forms of entrepreneurial
activity. Her particular interests include decision-making processes, personality, utility, and cultural values
affecting commercial and social entrepreneurship and her work has been presented at a number of
international conferences such as the European Academy of Management, the Academy of Management,
the Annual Social Entrepreneurship Conference, and the Australian Conference for Entrepreneurship
Research Exchange. Moreover, Charlott published in the International Journal of Entrepreneurial Venturing
(IJEV).
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Cultural intelligence and adaptive selling behaviors in cross-cultural selling: The cognitive resource theory and social role theory perspective
Article
This study examines the underlying mechanism explaining the contribution of cultural intelligence (CQ) to adaptive selling behaviors in cross-cultural selling contexts. The study draws on cognitive resource theory in order to explore the mediating role of customer qualification skills in explaining how CQ contributes to adaptive selling behaviors. The study also uses social role theory to illustrate the moderating role of gender in the effectiveness of cultural intelligence on customer qualification skills. Data were collected from 966 export salespeople in mainland China using a questionnaire survey, and partial least squares structural equation modeling was used for the data analysis. The results revealed a positive association between cultural intelligence and adaptive selling behaviors, as well as a partial mediating effect of customer qualification skills on this positive association. Moreover, the positive relationship between cultural intelligence and customer qualification skills was found to be stronger among female export salespeople than their male counterparts.
... All the educational patterns are guided by the cultural patterns in the society. People who are more educated tend to understand the challenges that people in different professionals go through as compared to the lesser educated individuals (Caputo et al., 2019). Also, the more educated people are able to identify when the services offered to them are low quality. ...
... The effects of CQ on employee voice were confirmed by these data. Caputo et al., (2019) The impact of cultural intelligence on the relationship between cultural values and individual preferences for a certain negotiation style is investigated in this study. ...
Effect of Cultural Intelligence (CI) on Patient Care Services in Private Hospitals at Muscat Governorate
Article
Full-text available
  • Feb 2022
The increasing need for medical care has led to demand for private medical institutions which offer more personalized care. Most of the patients have grown to prefer private medical attention as compared to public medical care due to the better services offered. Nurses interact with patients on a daily basis who are from different cultural backgrounds which makes it essential for them to understand various cultures to be able to interact and effectively serve all the patients visiting the hospital. Private hospitals in Oman receive patients from diverse cultural backgrounds. In this research, an attempt was made to find out the level of Cultural intelligence in various dimensions and to examine the effect of nurses' cultural intelligence (CI) on patient care services in private hospitals at Muscat governorate. Hence, nurses from Muscat governorate private hospitals were the study's respondents. The data was analysed using the Quartile method, Chi-square, and multiple regression analysis. This research found that the nurses have high level of cultural intelligence in cognitive and meta-cognitive dimensions. On the other hand, majority of the respondents had low level of behavioural dimension of cultural intelligence. And there is no significant relationship between demographic details and the level of cultural intelligence. Furthermore, the findings demonstrated a significant relation between nurse's cultural intelligence in various dimensions and patient care services.
... On the one hand, the role of CQ in developing entrepreneurs' cognitive ability to adapt to the business environment has been recognized by Social Cognitive Theory (Bandura, 1989). On the other hand, sense of power (i.e., feeling empowered) has been linked to an individual's socioeconomic resources, as well as the degree of his or her CQ (Caputo et al., 2019;Murphy et al., 2019). This paper conceptualized and empirically tested sense of power and CQ as the potential psychological mechanisms underlying IE intention. ...
Predictors of International Entrepreneurial Intention Among Young Adults: Social Cognitive Theory
Article
Full-text available
  • Jun 2022
This study investigated the psychological mechanism by which parents’ socioeconomic status, including income and social class, influences the international entrepreneurship intentions of young adults. Two datasets, self-reported (survey) and objective, were collected from 372 undergraduate students across 19 universities in China. Parents’ income and social class had a positive effect on international entrepreneurship intentions. Sense of power and motivational cultural intelligence (CQ) played mediating roles in this relationship, and work experience moderated this relationship. The mediation tests revealed that sense of power and motivational CQ comprise a serial mediation process, in that order. The effect of motivational CQ on international entrepreneurship intentions was strengthened by young adults’ work experience. We identified the underlying mechanism and moderator of the relationship between socioeconomic factors and international entrepreneurship intentions.
... Power distance [5,12,14,15,51,[53][54][55][56][57][58][59][60][61][62][63][64][65][66] Individualism/ Collectivism [5,12,14,15,53,54,[56][57][58][59][64][65][66][67][68][69][70][71][72][73][74][75] Masculinity/ Femininity [5,12,14,15,53,54,[56][57][58][59]65,66,76] Uncertainty Avoidance Uncertainty Tolerance [5,12,14,15,53,54,56,57,59,[65][66][67]69] Long-term Orientation/ Short-term Orientation [5,14,15,[53][54][55][56][57][58][59]65,66,[76][77][78] Indulgence/ Restraint [14,15,53,54,57,[65][66][67] Cultural values remain stable for decades and change very slowly. Repeated research has shown [15,75,79] that even if the indices of the dimensions of some countries change in the long run, their relative position remains. ...
Accelerating Cultural Dimensions at International Companies in the Evidence of Internationalisation
Article
Full-text available
  • Jan 2022
The research goal is to investigate whether several cross-cultural dimensions proposed in the Hofstede cultural model link international companies and their affiliations operating in Scandinavia and Baltic countries. Although cultural aspects have got much more attention in internationalisation studies over the last decade, there is still room for research focusing on such study areas. The authors start with the analysis of the literature review. Presenting the holistic approach affecting internationalisation and a list of factors necessary for internationalisation, later on, the authors present the cultural dimension of Hofstede, and then give various qualitative methods applied for studies on internationalisation. Design/Methodology/Approach: To complete the research, the authors selected the database from Nasdaq (2021), listed MNE companies from six countries: Denmark, Norway, Sweden, Estonia, Latvia and Lithuania. The mother company is located in Scandinavia, and the daughter company is in the Baltics based on FDI flows. The author’s research included 56 MNE companies from Nasdaq Baltic stock exchange. We used the correlation matrix to support the research and present the direction of identified connections to proceed with it. Findings: Obtained results revealed that there are strong links among several cultural dimensions. The results show seven positives and four negative links when discussing cross-cultural links. This finding shows that talking about intercultural relations, only four out of six Hofstede cultural dimensions have at least one strong connection operating business internationally. Originality/Value/Practical implications: The authors identified that some cross-cultural dimensions could not be analysed further because they do not have significant links. The limitations of the study and further research directions are also provided.
Emotions, culture intelligence, and mutual trust in technology business relationships
Article
Both scholars and practitioners highlight the critical role of mutual trust in cross-border technology business relationships. Yet the alliance literature has overlooked the role of emotions and cultural intelligence in developing mutual trust. In a cross-sectional survey of 210 technology business relationships, we find that both a partner's expressing and evoking emotional states are positively associated with mutual trust. We also observe that while interaction with cultural intelligence strengthens the relationship of expressing emotional states with mutual trust, awareness of cultural intelligence weakens it. In addition, awareness of cultural intelligence positively moderates the link between evoking emotional states and mutual trust but negatively conditions the link between expressing emotional states and mutual trust. These findings highlight the importance of emotions as organizational capabilities that can help create an exchange environment characterized by open communication and confidence that partners will meet agreed-on obligations.
Exploring configurations of negotiating behaviors in business negotiations: A qualitative comparative analysis
Article
Previous research has explored the antecedents of negotiating behaviors separately, without considering their potential correlations. Applying a fuzzy set qualitative comparative analysis to a sample of 407 participants in simulated negotiations, the effects of different combinations of indicators (gender, subjective value, risk attitude, the negotiator’s anger, and the perceived opponent’s anger) on different negotiating behaviors are examined. This study reveals little role for gender differences in negotiating behaviors, except for forcing behavior. When the levels of most subjective values are high or low, different behavioral tendencies combine with other conditions. The risk takers tend to exhibit integrating and forcing behaviors, whereas risk averters are more likely to adopt yielding and avoiding behaviors. When the levels of both negotiators’ anger are similar, they are inclined to adopt integrating, compromising, avoiding, and yielding behaviors.
A Look into Power Distance in Iran
Article
Full-text available
  • Mar 2022
Individuals in a society do not have equal status, and different cultures have different attitudes towards these inequalities. Hofstede (2001) defines “power distance” as “the extent to which the members of a society accept that power in institutions and organizations is distributed unequally” (p. 347). Power distance could affect different aspects of international and intercultural communication (Caputo et al., 2019: Liu, Zhu, & Cionea, 2019). Iran, officially known as the Islamic Republic of Iran, is the second largest country located in the Middle East with a population of over 85 million (Word Population Review, 2022). Iran has been operating on a Shiite system of governance since the Iranian Revolution of 1979, and is a multi-ethnic society with Persian (Farsi) as its official language (Nameni, 2020, 2021). While individuals in Iran could have different attitudes towards power distance, according to Hofstede Insights (2022) this country has an intermediate score of 58 on power distance and is considered a hierarchical society with centralized power where people more readily accept the unequal distribution of power and expect subordinates to do as they are told by their superiors. High power distance manifests itself in different aspects of life in Iran, a number of which this letter aims to discuss.
The effect of cultural intelligence of top management on pro-diversity work climate and work attitudes of Myanmar migrant workers in Thailand
Article
  • Jan 2022
Purpose This research examines the effect of cultural intelligence (CQ) of top management on pro-diversity climates and perceived discrimination of the Myanmar migrant workers in Thailand. This research also analyzes the effect of perceived discrimination on job satisfaction and turnover intention of the Myanmar migrant workers. Design/methodology/approach The data were collected from 650 Myanmar migrant workers who are employed at two factories in Thailand. Partial least squares structural equation modeling (PLS-SEM) was used as the data analysis method. Findings The results significantly support the positive effect of perceived management CQ on pro-diversity climates. Pro-diversity climates are also negatively and significantly associated with perceived discrimination. Moreover, the effect of perceived management CQ on perceived discrimination is fully mediated by pro-diversity climate. Originality/value This research clarifies that simply ensuring top management possess CQ may not be a sufficient condition for the company to successfully tackle discrimination in the workplace. Rather, it is crucial for the top management to create an organizational climate that is supportive of the racial diversity of foreign migrant employees.
Expatriate Managers' Cultural Intelligence as a Promoter of Knowledge Transfer in Multinational Companies
Article
Full-text available
This study analyzes the role of the Cultural Intelligence (CQ) of expatriate managers in the processes of Conventional (CKT) and Reverse Knowledge Transfer (RKT) in in Multinational Companies (MNCs). The Partial Least Squares-Structural Equation Modeling (PLS-SEM) technique was adopted to analyze the data from a survey of 103 senior expatriate managers working in Croatia. The study reveals how CQ, in all of its four dimensions (metacognitive, cognitive, behavioral, and motivational), acts as a knowledge de-codification and codification filter, assisting managers in the Knowledge Transfer process. The study also reveals how previous international experience does not moderate the positive effect of CQ on both CKT and RKT, offering important theoretical and practical insights to support MNCs in the KT process.
Cultural Intelligence: A Review and New Research Avenues: Cultural Intelligence
Article
Full-text available
  • Aug 2016
Cultural intelligence (CQ), an individual's capability to function and manage effectively in culturally diverse situations and settings, has become the focus of a vibrant scholarly conversation and a flourishing area of multidisciplinary research. Since the introduction of the concept in 2002, substantial research has been conducted concerning its definition, the validation of its measurement, and the examination of its development and predictive capabilities. The present paper systematically reviews 73 conceptual and empirical articles published on CQ from 2002 to 2015 in management and international business journals as well as in education and psychology. The authors discuss two distinct conceptualizations of CQ, developments within the conceptual research, and opportunities for further theorizing. They also cluster the empirical studies based on how CQ was used and identify patterns, achievements and challenges within the literature. Finally, based on their analysis, they identify promising avenues for future research and propose specific questions that can further advance the scholarly conversation on CQ.
A theory of cultural value orientations: Explication and applications
Article
Full-text available
  • Jan 2009
This article presents a theory of 7 cultural value orientations that form 3 cultural value dimensions. This theory permits more finely tuned characterization of cultures than other theories. It is distinctive in deriving the cultural orientations from a priori theorizing . It also specifies a coherent, integrated system of relations among the orientations, postulating that they are interdependent rather than orthogonal. Analyses of data from 73 countries, using two different instruments, validate the 7 cultural orientations and the structure of interrelations among them. Conceptual and empirical comparisons of these orientations with Inglehart’s two dimensions clarify similarities and differences. Using the cultural orientations, I generate a worldwide empirical mapping of 76 national cultures that identifies 7 transnational cultural groupings: West European, English-speaking, Latin American, East European, South Asian, Confucian influenced, and African and Middle Eastern. I briefly discuss distinctive cultural characteristics of these groupings. I then examine examples of socioeconomic, political, and demographic factors that give rise to national differences on the cultural value dimensions, factors that are themselves reciprocally influenced by culture. Finally, I examine consequences of prevailing cultural value orientations for attitudes and behavior (e.g., conventional morality, opposition to immigration, political activism) and argue that culture mediates the effects of major social structural variables on them.
Hotel Decision-Making During Multiple Crises: A Chaordic Perspective.
Article
This study focuses on the decision-making process of Greek accommodation providers during a period characterised by multiple crises (recession; political and financial instability; social unrest; a refugee crisis). Using fuzzy-set Qualitative Comparative Analysis the research employs a nationwide survey of 243 hotel managers/owners. The results reveal five sufficient configurations characterised by the development of enterprising competitiveness, the operational aspects, marketing and promotional concerns, business productivity and efficiency, and the financial issues of hotels. The research also compares asymmetric analysis with the dominant linear methods (regression and Cramer’s V), highlighting the suitability of the former in chaordic systems. It also progresses from fit to predictive validity for the examined models. The study’s contribution is to both theoretical and methodological tourism and hospitality domain.
On the Role of Personality, Cognitive Ability, and Emotional Intelligence in Predicting Negotiation Outcomes: A Meta-Analysis
Article
  • Jan 2013
There has been a longstanding consensus among researchers that individual differences play a limited role in predicting negotiation outcomes. However, this consensus results historically from early reviews that relied on limited data and problematic research designs. Questioning this consensus, a meta-analysis of negotiation studies revealed a significant role for individual difference variables. The analysis demonstrated predictive validity for numerous personality traits, cognitive ability, and emotional intelligence. Multiple outcome measures were examined, namely economic individual value, economic joint value, and psychological subjective value for both the negotiator and counterpart. Each individual difference measure had predictive validity for at least one outcome measure, with the exception of conscientiousness. Characteristics of research design moderated some associations. Field data showed stronger effects than did laboratory studies. Implications for theory and practice are considered.
Influence of Time Pressure on the Outcome of Intercultural Commercial Negotiations
Article
  • Jul 2016
It is essential, in commercial negotiations, to know how time pressure is expressed among customers and suppliers and which its effect on the outcomes of negotiation is. Must pressure be applied or not? In order to solve this question, 21 customer/supplier negotiation case studies were carried out (intercultural and intracultural). We have evidenced that an adequate time pressure, at low levels, produced outcomes that tend to be positive. Also, the national culture of the negotiators may influence the decision about using or not time pressure in these processes; especially when considering In-Group Collectivism and Uncertainty Avoidance dimensions.
Measures of personality and social psychological attitudes
Article
  • Jan 1991
Discriminant Validity Testing in Marketing: An Analysis, Causes for Concern, and Proposed Remedies
Article
  • Jul 2015
The results of this research suggest a new mandate for discriminant validity testing in marketing. Specifically, the authors demonstrate that the AVE-SV comparison (Fornell and Larcker 1981) and HTMT ratio (Henseler et al. 2015) with 0.85 cutoff provide the best assessment of discriminant validity and should be the standard for publication in marketing. These conclusions are based on a thorough assessment of the literature and the results of a Monte Carlo simulation. First, based on a content analysis of articles published in seven leading marketing journals from 1996 to 2012, the authors demonstrate that three tests—the constrained phi (Jöreskog 1971), AVE-SV (Fornell and Larcker 1981), and overlapping confidence intervals (Anderson and Gerbing 1988)—are by far most common. Further review reveals that (1) more than 20% of survey-based and over 80% of non-survey-based marketing studies fail to document tests for discriminant validity, (2) there is wide variance across journals and research streams in terms of whether discriminant validity tests are performed, (3) conclusions have already been drawn about the relative stringency of the three most common methods, and (4) the method that is generally perceived to be most generous is being consistently misapplied in a way that erodes its stringency. Second, a Monte Carlo simulation is conducted to assess the relative rigor of the three most common tests, as well as an emerging technique (HTMT). Results reveal that (1) on average, the four discriminant validity testing methods detect violations approximately 50% of the time, (2) the constrained phi and overlapping confidence interval approaches perform very poorly in detecting violations whereas the AVE-SV test and HTMT (with a ratio cutoff of 0.85) methods perform well, and (3) the HTMT.85 method offers the best balance between high detection and low arbitrary violation (i.e., false positive) rates.
Common Method Biases in Behavioral Research: A Critical Review of the Literature and Recommended Remedies
Article
  • Oct 2003
Interest in the problem of method biases has a long history in the behavioral sciences. Despite this, a comprehensive summary of the potential sources of method biases and how to control for them does not exist. Therefore, the purpose of this article is to examine the extent to which method biases influence behavioral research results, identify potential sources of method biases, discuss the cognitive processes through which method biases influence responses to measures, evaluate the many different procedural and statistical techniques that can be used to control method biases, and provide recommendations for how to select appropriate procedural and statistical remedies for different types of research settings.
Assessing Reliability and Stability in Panel Models
Article
  • Jan 1977