International Business Negotiation - Literature review Example

RUNNING HEAD: Cultural Differences and Negotiations Name Course Instructor Date Cultural Differences and Negotiations It is quite evident that negotiation plays a major role in every day to day activity. Evidently, across the world, negotiation is largely affected due to the existence of cultural difference. Today, culture differences are a matter that is complex which largely include; time concept, custom of food, belief as well as type of privacy (Carnevale and Dong-Won, 2000). This paper focuses on discussing the influence created by culture diversity which is largely viewed to limit Chinese and a western country since China is considered to be rapidly growing developing in the world both in trade and enhanced technology. Therefore, in this paper, china will be viewed as our construct so as to get adequate view on how cultural differences largely influence day today negotiation. According to Brett (2001), different ways in which individuals do their businesses widely unfolds different cultural background found across the globe. It is quite evident that the way business is performed effects negotiation in many various ways. In order to have a clear understanding on how cultural differences influences negotiation and negotiating behavior it is important to discuss the topic in four effective parts namely: difference of privacy, difference of time, difference of belief and differences of food practices. These four concepts explain widely how culture profoundly influences people way of thinking, behaving as well as communicating. Further, they widely explain the kind of transaction made and the way to negotiate these transactions. For instance differences of culture that exists between business executive in that a Chinese public sector plant manager in shanghai and a Canadian division head of family company in Toronto can create observable barriers that impede or completely stymie the negotiation in place (Brett, 2001). Cohen (2004) maintain that, based on the first effective part; difference of privacy it is quite evident that Chinese people have privacy concept are commonly weak whereas personal privacy is treated to be an important aspect within western countries whereby they are more concern with personal space and are not willing to know other people affairs. Clearly from the above described privacy setting it is clear that culture limits the way of negotiating especially when focusing on different cultural background. By this both Chinese and west people could not agreeably reach a consensus. Another example is exhibited when a Chinese meet it is within their custom to enquire about one age, marital status as well as their income. For the west they find such questions unnecessary. This therefore gives an understanding on how cultural differences widely influence negotiation and negotiating behavior (Gelfand and Dyer, 2000). Lewicki et al (2006) maintain that, culture influences negotiation especially in the formation of a negotiating goal between a Chinese and people from the west. Negotiators from the Chinese and western side may have a different view on the purpose of their negotiation. For the western, their culture gives an indication that the goal for establishing business negotiation foremost requires the signing of a contract between the two parties which is not the case for the Chinese (Reynolds et al 2003). Based o0n the Chinese they tend to be involved largely in considering the goal exhibited in the negotiation goal is not in the signing of the contract but rather the creation of a stronger relationship between the parties involved. The westerners argue that the written contract widely expresses the relationship but to the Chinese the essence brought out by the deal is the relationship itself. According to Salacuse (2003), the other element which influences negotiation based on cultural background is difference of time. Clearly, the westerns really take into consideration the concept of time which they really treasure. Most of them posses a plan book which they believe it assist in their negotiation where they largely record each negotiation event in their timetable thus performing their duties according to its record. On the other hand, Chinese cultures do not recognize or pay attention to the time factor therefore interfering with negotiation with westerns that are not very familiar with this phenomenon. For this influence and to adapt effective negotiation it is very important to safely adopt a formal posture whereas moving in a more informal stance, if the negotiation situation clearly warrants it other than just to assume as informal style too quickly (Weiss, 2003). Differences in cultural beliefs am offer differences in orientation in respect to space as they may offer no limits in privacy, publicity and other spaces that might be seen to be comfortable and personal for a negotiation to occur. Most of the women in the Arabic Muslim states are not allowed to meet in private places with men who are not either elated by birth or by marriage. This may not offer comfortable choices for negotiations as the environments are not conducive to initiate a meaningful communication (Jensen, 2004). The Americans on the other hand belief that persons who look at the others straight in the eyes are more likely to be truthful in their dealings which is different from some African states who view it as a sign of rudeness. This implies that the cultural differences which exist in the different continents based on traditions might have a series of positive or negative effects on the negotiation skills and strategies in businesses (Bai, 2002). Some cultures on the other hand encourage a degree of assertiveness which in some traditions might be viewed as rebellion or lack of respect or even in most cases being stern to issues. This kind of differences in beliefs may offer differences in the terms of skills in persuasion and thus presenting relative forms of advantages or disadvantage to persons in relation to agreement among the parties involved (Hofstede, 2005). Many Chinese negotiators are known to take more time in negotiations through asking questions that relate to the situation at hand. This in most cases takes a sense of courage in birth men and women of the cultures which might not be the case in the African cultures (Foster, 1992). In the American culture for instance, the persons are mainly characterized by pushing in harder in search of questions for a particular instance or situation. This calls for observatory and patience in listening, a characteristic that a Russian negotiator might not have based on their direct negotiation skill culture that they have. The Latin Americans on the other hand are characterized by changing of topic when the negotiation is not appealing or takes a point that they view to be out of the cause (Wang, 2001). The cause and differences in beliefs is thus affected to the changes in behavior that is aimed at avoiding offending the other parties or having the unintended passed across to the other parties involved in the negotiations. It is common that most negotiation meetings begin with a hand shake in most cultures but the mode of greeting or handshake differs depending on the beliefs. Some African communities forbid a hand shake for young members to their elders while most of the cultures accept it (Wang, 1998). The differences in the forms of greeting have an effect on the negotiation skills. The hand shake and some of them are not appropriate among different genders are not appropriate (Thompson, 1998). Some of the Americans and other European states view a firm hand shake as more genuine compared to the other forms of hand shake. However, some other firm handshakes are seen as aggressive and form of a bullish nature (William Hernandez Requejo and John L. Graham, 2008). It is also believed that the personalization of business negotiations is viewed as unhealthy. These believes also involve the forms through which persons are addressed and how the negotiations are initiated. Businesses in the American society are viewed as naturally contractual and personal relationships lead to complications and cloud the negotiations with objectivity (Howard, 2002). Strategies used by various negotiators differ among different strategies. The South America often uses vocals in association with animations in their business negotiations as a way to portray emphasis. The Japanese on the other hand often use negotiations in teams and they often base the negotiations on consensual agreement (Nisbett, 2003). Decisions are often made by the most senior members of the society or the negotiating team which is not a prerequisite in the American and the European community’s or negotiating parties (David J. Lax and James K. Sebenius, 2006). On the other hand, some foods are not allowed as per religious beliefs for instance the negotiations involving a purchase of pigs would not be agreeable in an Islamic culture as they are viewed as dirty a fact that is viewed differently by the American and the European communities and negotiators (Zhao, 2000). References Bai, y. (2002). International Business Negotiation. Beijing: People’s University Press. Brett, J. (2001). Negotiating Globally: How to Negotiate Deals, Resolve Disputes, and Make Decisions across Cultural Boundaries. San Francisco: Jossey-Bass Carnevale Peter J. and Dong-Won Choi. (2000) ‘Culture in the Mediation of International Disputes’, International Journal of Psychology, 35(2), 105-110 Cohen, R. (2004). Negotiating Across Cultures. Washington, DC: United States Institute of Peace Press. David, J. and James, K. (2006). 3-D Negotiations, . Boston: : Harvard Business School Press,. Foster, D. (1992). ABargaining across Borders: How to Negotiate Business Successfully Anywhere in the World. . New York: McGraw-Hill. Gelfand, M. and Dyer, N. (2000). A cultural perspective on negotiation: progress, pitfalls, and prospects. Applied Psychology: An International Review 49: 62-99 Hofstede, G. (2005). Culture and organizations: Software for the mind. ,. New York: NY: McGraw-Hill. Howard, R and David, M (2002). Negotiation Analysis, . London: Cambridge, MA: Belknap. Ian, J. (2004). Practices of Intercultural Communication - Reflections for Professionals in Cultural Meetings. Journal of Intercultural Communication , 23-97. Lewicki, R., and Barry, B. (2006). Negotiation. New York: McGraw-Hill Irwin Ray, N. (2003). The Geography of Thought: How Asians and Westerners Think Differently…and Why. New York: The Free Press. Reynolds, N., Siminitiras, A., and Vlachou, E. 2003. International business negotiations. Present knowledge and directions for future research. International Marketing Review 20: 236-261 Salacuse, J.W. 2003. The Global Negotiator: Making, Managing and Mending Deals Around the World in the Twenty-first Century. New York: Palgrave Macmillan. Thompson, L. (1998). The Mind and Heart of the Negotiator. Upper Saddle River: NJ: Prentice-Hall. Wang, y. Z. (1998). Business Culture in China. . London: Butterworth-Heinemann. Wang, Z. (2001). International Business Culture. . Hong Kong: Liaoning Education Press. Weiss, S.E. 2003. Teaching the cultural Aspects of Negotiations: A Range of Experiential Techniques. Journal of Management Education 27: 96-121 William Hernandez Requejo and John L. Graham. (2008). Global Negotiation: The New Rules, : . New York: Palgrave Macmillan,. Zhao, J. (2000). The Chinese Approach to International Business Negotiation. . The Journal of Business Communication, 37(3):, 209-237. Read More