The document discusses international and cross-cultural negotiation. It describes two contexts that influence international negotiations - environmental context and immediate context. Environmental context includes factors outside negotiators' control like politics, economics, and culture. Immediate context includes factors negotiators can influence like power, relationships, and goals. Culture significantly impacts the negotiation process and outcomes. Dimensions like individualism/collectivism and power distance shape communication, decision making, and conflict resolution between cultures. The document also reviews strategies for negotiating across cultures based on the familiarity with the other party's culture.
1 of 24
Download to read offline
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
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.
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
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