Cultural Differencies in International Business Negotiation: the Need for an Assessment of Influencial Factors

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Cultural Differencies in International Business Negotiation: the Need for an Assessment of Influencial Factors

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Themes

International management, international negotiations, international business, culture, collectivism, individualism, TCE Transaction Cost Economics, NIE New Institutional Economics, cooperative tactic, competitiveness

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Abstract

With social conflict being ubiquitous, conflict management is a major challenge for humanity. Recently, researchers have advanced several theories and research on constructive solutions for conflict management. Negotiation is then proposed as the most effective way to do this according to conceptual perspectives that include economics and game theory. Indeed, these perspectives provide normative representations of negotiation behavior, and motivational, cognitive, and individual differences representations. All of this leads to descriptive models of negotiation behavior.

Like other fields, cross-cultural psychology has always viewed the influence of culture on cognition as timeless and continuous and constant. Compared to the "contact lens", conceptualized cultural knowledge is capable of totally or partially modifying individual perception.

The Brief Context of International Business Negotiations
Culture and Negotiation Research
1. Culture in International Management
2. Negotiation
3. Negotiation Styles and Individually Cultural Values
4. National Culture and Negotiation Style
5. Behaviors, Emotions, Opportunim
6. The Language Barrier
Cultural Influences on Negotiation
1. Tactics and Outcomes
2. Negotiators Psychological and Qualities States Requested
3. Demographic, Cultural, and Economic Predictors
4. Cultural Adaptation
Cultural Intelligence and Cross-Cultural Negotiation Success

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[...] Kumar (1997) emphasizes that more general differences in negotiation "scenarios" between cultures can have a variety of negative consequences, including negative emotions in cross-cultural business interactions. Although early research in cross-cultural psychology was largely atheoretical and focused on geographic differences, many dimensions of cultural difference have been empirically derived over the past 20 years (Hofstede, 1980; Schwartz, 1994; Triandis, 1982). Value preferences The latest research in this area comes from Schwartz and colleagues (Schwartz 1994; Schwartz & Bilsky, 1990). Based on extensive research in more than 40 countries, Schwartz theoretically proposes and empirically validates the ring structure of specific cultural value types: "These cultural value types represent different socially shared abstract ideas of what is good, right, and desirable within each culturally limited group within a society or country" (Smith & Schwartz, 1997). [...]

[...] While in the negotiation literature the conclusion of a transaction or contract is often a measure of the successful outcome of a business negotiation, in the international economic literature and contract research, a contract represents at best the midpoint of an ongoing international business exchange relationship; the original contract Usually plays a relatively limited role (Wathne & Heide 2000) and only serves as a framework agreement (Mouzas 2006). Opportunism in International Business Negotiation Despite some controversy, opportunism is a widely accepted behavioral assumption in a broad range of economic behavior studies (Ghoshal & Co. [...]

[...] Cultural Differencies in International Business Negotiation: the Need for an Assessment of Influencial Factors The Brief Context of International Business Negotiations The combination of international negotiation framework and negotiation game must be based on an understanding of both literary genres. Over time, several international business frameworks have been developed to show their impact Different cultural variables in the dynamics of international business negotiations (Sawyer and Guetzkow 1965; Fayerweather and Kapoor 1976; Graham 1987; Moran and Peel 1991; Gouri 2003; Kale 2003; Usunil 2003; Wanlai and Manlay 2010). [...]

[...] They make decisions based on possible profitability or other opportunities for success without having to overcharge. Negotiators operating in the short term, work according to their moral principles. They are strict in terms of standards of behavior, without considering the future consequences of their practices. Naturally accommodating and patient with their counterparts, they are confident and adopt an "opportunistic quality" strategy. Hypothesis in research: "Long-term orientation is negatively related to a competitive negotiation style". "Long-term orientation is positively related to a cooperative negotiation style". [...]

[...] The negotiation can be broken off at any time. Understanding the differences and similarities between the cultures involved facilitates communication and increases the chances of successful negotiations. Hypothesis in research: "To the extent that participants come from a culture with greater power distance, they will be more sensitive in their negotiation behavior to their assumed social status in the game" "The relationship between what participants say and what they do will be clearer in a comparison between countries than between individuals". [...]

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