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16-1
McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved
CHAPTER SIXTEEN
International and
Cross-Cultural Negotiation
16-2
McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved
What Makes International
Negotiations Different?
Two overall contexts have an influence on
international negotiations:
 Environmental context
 Includes environmental forces that neither negotiator
controls that influence the negotiation
 Immediate context
 Includes factors over which negotiators appear to have
some control
16-3
McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved
Environmental Context
Factors that make international negotiations
more challenging than domestic
negotiations include:
 Political and legal pluralism
 International economics
 Foreign governments and bureaucracies
 Instability
 Ideology
 Culture
 External stakeholders
16-4
McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved
Immediate Context
Factors over which the negotiators have
influence and some measure of control:
 Relative bargaining power
 Levels of conflict
 Relationship between negotiators
 Desired outcomes
 Immediate stakeholders
16-5
McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved
The Contexts of
International Negotiations
16-6
McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved
How Do We Explain International
Negotiation Outcomes?
International negotiations can be much more
complicated
 Simple arguments cannot explain conflicting
international negotiation outcomes
 The challenge is to:
 Understand the multiple influences of several factors
on the negotiation process
 Update this understanding regularly as circumstances
change
16-7
McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved
Conceptualizing Culture
and Negotiation
 Culture as learned behavior
 A catalogue of behaviors the foreign negotiator should
expect
 Culture as shared values
 Understanding central values and norms
 Individualism/collectivism
 Power distance
 Career success/quality of life
 Uncertainty avoidance
16-8
McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved
Hofstedes Dimensions
of Culture
 Individualism/collectivism
 Power distance
 Masculinity/femininity
 Uncertainty avoidance
16-9
McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved
Individualism/Collectivism
Definition: the extent to which the society is
organized around individuals or the group
 Individualism/collectivism orientation
influences a broad range of negotiation
processes, outcomes, and preferences
 Individualistic societies may be more likely to swap
negotiators, using whatever short-term criteria seem
appropriate
 Collectivistic societies focus on relationships and
will stay with the same negotiator for years
16-10
McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved
Power Distance
Definition: The extent to which the less
powerful members of organizations and
institutions (like the family) accept and
expect that power is distributed
unequally
 Cultures with stronger power distance will be
more likely to have decision-making
concentrated at the top of the culture.
16-11
McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved
Masculinity/Femininity
Definition: the extent cultures hold values
that are traditionally perceived as
masculine or feminine
 Influences negotiation by increasing the
competitiveness when negotiators from
masculine cultures meet
16-12
McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved
Uncertainty Avoidance
Definition: Indicates to what extent a
culture programs its members to feel
either uncomfortable or comfortable in
unstructured situations
 Negotiators from high uncertainty avoidance
cultures are less comfortable with ambiguous
situations--want more certainty on details, etc.
16-13
McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved
Hofstedes Cultures Ranking in the Top 10
16-14
McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved
Conceptualizing Culture
and Negotiation
 Culture as dialectic
 All cultures contain dimensions or tensions that are
called dialectics
 Example: Judeo-Christian parables too many
cooks spoil the broth and two heads are better
than one offer conflicting guidance
 This can explain variations within cultures
 Culture in context
 No human behavior is determined by a single cause
 All behavior may be understood at many different
levels simultaneously
16-15
McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved
Culture as Values
16-16
McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved
The Influence of Culture on Negotiation:
Managerial Perspectives
 Definitions of negotiation
 Negotiation opportunity
 Selection of negotiators
 Protocol
 Communication
 Time sensitivity
 Risk propensity
 Groups versus individuals emphasis
 Nature of agreements
 Emotionalism
16-17
McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved
The Influence of Culture on Negotiation:
Research Perspectives
 Negotiation outcomes
 Research suggests that culture has an effect on
negotiation outcomes, although it may not be
direct and it likely has an influence through
differences in the negotiation process in different
cultures
 Some evidence suggests that cross-cultural
negotiations yield poorer outcomes than
intracultural negotiations
16-18
McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved
The Influence of Culture on Negotiation:
Research Perspectives
16-19
McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved
The Influence of Culture on Negotiation:
Research Perspectives
 Negotiation process
 Culture has been found to have significant effects on
the negotiation process, including:
 How negotiators plan
 The offers made during negotiation
 The communication process
 How information is shared during negotiation
 Effects of culture on negotiator cognition
 Accountability to a constituent influenced negotiators
from individualistic and collectivistic cultures
differently
16-20
McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved
The Influence of Culture on Negotiation:
Research Perspectives
 Effect of culture on negotiator ethics and tactics
 Differences exist in the tolerance of different
negotiation tactics in different cultures
 Negotiators who trusted the other party were less
likely to use questionable negotiation tactics
 Effects of culture on conflict resolution
 Within collectivistic countries, disagreements are
resolved based on rules, whereas in individualistic
countries, conflicts tend to be resolved through
personal experience and training
16-21
McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved
Culturally Responsive
Negotiation Strategies
 When choosing a strategy, negotiators should:
 Be aware of their own and the other partys culture
in general
 Understand the specific factors in the current
relationship
 Predict or try to influence the other partys
approach
 Strategies are arranged based on the level of
familiarity (low, moderate, high) that a
negotiator has with the other partys culture
16-22
McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved
Low Familiarity
 Employ agents or advisers (unilateral strategy)
 Useful for negotiators who have little awareness of
the other partys culture
 Bring in a mediator (joint strategy)
 Encourages one side or the other to adopt one
cultures approaches or mediator culture approach
 Induce the other party to use your approach
(joint strategy)
 The other party may become irritated or be insulted
16-23
McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved
Moderate Familiarity
 Adapt to the other negotiators approach
(unilateral strategy)
 Involves making conscious changes to your approach
so it is more appealing to the other party
 Coordinate adjustment (joint strategy)
 Involves both parties making mutual adjustments to
find a common process for negotiation
16-24
McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved
High Familiarity
 Embrace the other negotiators approach
(unilateral strategy)
 Adopting completely the approach of the other negotiator
(negotiator needs to completely bilingual and bicultural)
 Improvise an approach (joint strategy)
 Crafts an approach that is specifically tailored to the negotiation
situation, other party, and circumstances
 Effect symphony (joint strategy)
 The parties create a new approach that may include aspects of
either home culture or adopt practices from a third culture

More Related Content

Chap016

  • 1. 16-1 McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved CHAPTER SIXTEEN International and Cross-Cultural Negotiation
  • 2. 16-2 McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved What Makes International Negotiations Different? Two overall contexts have an influence on international negotiations: Environmental context Includes environmental forces that neither negotiator controls that influence the negotiation Immediate context Includes factors over which negotiators appear to have some control
  • 3. 16-3 McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved Environmental Context Factors that make international negotiations more challenging than domestic negotiations include: Political and legal pluralism International economics Foreign governments and bureaucracies Instability Ideology Culture External stakeholders
  • 4. 16-4 McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved Immediate Context Factors over which the negotiators have influence and some measure of control: Relative bargaining power Levels of conflict Relationship between negotiators Desired outcomes Immediate stakeholders
  • 5. 16-5 McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved The Contexts of International Negotiations
  • 6. 16-6 McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved How Do We Explain International Negotiation Outcomes? International negotiations can be much more complicated Simple arguments cannot explain conflicting international negotiation outcomes The challenge is to: Understand the multiple influences of several factors on the negotiation process Update this understanding regularly as circumstances change
  • 7. 16-7 McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved Conceptualizing Culture and Negotiation Culture as learned behavior A catalogue of behaviors the foreign negotiator should expect Culture as shared values Understanding central values and norms Individualism/collectivism Power distance Career success/quality of life Uncertainty avoidance
  • 8. 16-8 McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved Hofstedes Dimensions of Culture Individualism/collectivism Power distance Masculinity/femininity Uncertainty avoidance
  • 9. 16-9 McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved Individualism/Collectivism Definition: the extent to which the society is organized around individuals or the group Individualism/collectivism orientation influences a broad range of negotiation processes, outcomes, and preferences Individualistic societies may be more likely to swap negotiators, using whatever short-term criteria seem appropriate Collectivistic societies focus on relationships and will stay with the same negotiator for years
  • 10. 16-10 McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved Power Distance Definition: The extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally Cultures with stronger power distance will be more likely to have decision-making concentrated at the top of the culture.
  • 11. 16-11 McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved Masculinity/Femininity Definition: the extent cultures hold values that are traditionally perceived as masculine or feminine Influences negotiation by increasing the competitiveness when negotiators from masculine cultures meet
  • 12. 16-12 McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved Uncertainty Avoidance Definition: Indicates to what extent a culture programs its members to feel either uncomfortable or comfortable in unstructured situations Negotiators from high uncertainty avoidance cultures are less comfortable with ambiguous situations--want more certainty on details, etc.
  • 13. 16-13 McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved Hofstedes Cultures Ranking in the Top 10
  • 14. 16-14 McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved Conceptualizing Culture and Negotiation Culture as dialectic All cultures contain dimensions or tensions that are called dialectics Example: Judeo-Christian parables too many cooks spoil the broth and two heads are better than one offer conflicting guidance This can explain variations within cultures Culture in context No human behavior is determined by a single cause All behavior may be understood at many different levels simultaneously
  • 15. 16-15 McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved Culture as Values
  • 16. 16-16 McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved The Influence of Culture on Negotiation: Managerial Perspectives Definitions of negotiation Negotiation opportunity Selection of negotiators Protocol Communication Time sensitivity Risk propensity Groups versus individuals emphasis Nature of agreements Emotionalism
  • 17. 16-17 McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved The Influence of Culture on Negotiation: Research Perspectives Negotiation outcomes Research suggests that culture has an effect on negotiation outcomes, although it may not be direct and it likely has an influence through differences in the negotiation process in different cultures Some evidence suggests that cross-cultural negotiations yield poorer outcomes than intracultural negotiations
  • 18. 16-18 McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved The Influence of Culture on Negotiation: Research Perspectives
  • 19. 16-19 McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved The Influence of Culture on Negotiation: Research Perspectives Negotiation process Culture has been found to have significant effects on the negotiation process, including: How negotiators plan The offers made during negotiation The communication process How information is shared during negotiation Effects of culture on negotiator cognition Accountability to a constituent influenced negotiators from individualistic and collectivistic cultures differently
  • 20. 16-20 McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved The Influence of Culture on Negotiation: Research Perspectives Effect of culture on negotiator ethics and tactics Differences exist in the tolerance of different negotiation tactics in different cultures Negotiators who trusted the other party were less likely to use questionable negotiation tactics Effects of culture on conflict resolution Within collectivistic countries, disagreements are resolved based on rules, whereas in individualistic countries, conflicts tend to be resolved through personal experience and training
  • 21. 16-21 McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved Culturally Responsive Negotiation Strategies When choosing a strategy, negotiators should: Be aware of their own and the other partys culture in general Understand the specific factors in the current relationship Predict or try to influence the other partys approach Strategies are arranged based on the level of familiarity (low, moderate, high) that a negotiator has with the other partys culture
  • 22. 16-22 McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved Low Familiarity Employ agents or advisers (unilateral strategy) Useful for negotiators who have little awareness of the other partys culture Bring in a mediator (joint strategy) Encourages one side or the other to adopt one cultures approaches or mediator culture approach Induce the other party to use your approach (joint strategy) The other party may become irritated or be insulted
  • 23. 16-23 McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved Moderate Familiarity Adapt to the other negotiators approach (unilateral strategy) Involves making conscious changes to your approach so it is more appealing to the other party Coordinate adjustment (joint strategy) Involves both parties making mutual adjustments to find a common process for negotiation
  • 24. 16-24 McGraw-Hill/Irwin 息2006 The McGraw-Hill Companies, Inc., All Rights Reserved High Familiarity Embrace the other negotiators approach (unilateral strategy) Adopting completely the approach of the other negotiator (negotiator needs to completely bilingual and bicultural) Improvise an approach (joint strategy) Crafts an approach that is specifically tailored to the negotiation situation, other party, and circumstances Effect symphony (joint strategy) The parties create a new approach that may include aspects of either home culture or adopt practices from a third culture