Literature Review - Essay Example

? Literature Review 23rd, May LITERATURE REVIEW I. Introduction A literature review is a critical analysis and an objective and intensive summary of the relevant research and non-research literature on the topic being studied, which is available (Hart 1998 Cited in Cronin et al. 2008). This review of literature will therefore, adopt the relevant studies, through which the researcher will be able to identify the issues that have been addressed and those that have not been addressed on the study topic. a) Purpose and Importance of Study The purpose of this qualitative study is to investigate the Indian business negotiation styles, and various factors that shape these negotiation styles. This study is therefore, important, as the knowledge generated about Indian business negotiation styles will be helpful to different western multinational companies seeking to expand to India, and those already operating in India, in conducting their business practices effectively and in sustaining their productivity. b) Themes and Trends in Research Questions, Methodology, and Findings Research question: What are the cultural differences in business negotiation styles between the Indian and Western business managers? This study will therefore, employ different theories and review of literature to identify the cultural disparities in the negotiation styles of the Indians and Western business managers. Nonetheless, one major theme that develops in this study is the theme of culture. Culture is the basis of the differences in the business negotiation styles of the Indians and Western business managers (Salacuse, 1999). Therefore, this study will explore the Indian business negotiation styles, and the role of culture in shaping them. This is in addition to the Western business negotiation styles, and the role of culture in shaping them. Furthermore, the differences between the Indian and the Western business negotiation styles are explored in this study. The research methodology employed in this study is the qualitative method, as this study deals with data that is subjective in nature. Research will include both primary and secondary data, in order to answer the research question in an intensive manner. Primary data will be collected through the use of questionnaires and in-depth interviewing methods, which will be carried out at the personal level. Although Sapsford and Jupp (2006) note that secondary data is easier to collect and analyze, compared to primary data, this study will primarily depend on primary data. The researcher will use secondary data prior to the collection of primary data, in order to have an insight into the issues under study, and the probable results of the study. Nonetheless, secondary data will be gathered from authoritative sources, including books and journals. Since this study puts both the business negotiation styles of India and the West into perspective, it is expected that the findings will bear key concepts in business negotiation styles, and how these concepts vary across the two cultures. First, findings will show the goal of negotiation of the cultures, whether business negotiation is perceived as a contract or a relationship between business partners. Secondly, findings will show whether the negotiation style embraces a formal or informal personal style. Finally, the level of sensitivity to time in each culture will be determined by the findings. II. Background to the problem Choudhary, Kshirsagar, & Narayanan (2012) note that for the past 20 years, foreign multinational companies have struggled to gain entry into India. This is mostly because India is an economy that exhibits growth, thus attracting foreign investors. Nonetheless, not all multinational companies succeed in gaining entry into India (Stephen 2010). Similarly, some of those that have gained entry into India have failed to sustain their productivity in the country (Choudhary, Kshirsagar, & Narayanan, 2012). According to Salacuse (2005), most western multinational companies in India such as Enron (an American company) have faced challenges in conducting business effectively in India. This is because of their lack of knowledge and adaptability to the Indian culture, and the Indian business negotiation styles. According to Stephen (2010), business and culture in Indian are highly linked. In addition, in the Indian culture, honesty, family values, respect, and order are highly upheld. Furthermore, relationship and interpersonal communication feature strongly in the Indian culture (Stephen, 2010). Overall, compared to the western countries, Indians continue to embrace their indigenous cultures, even in their business negotiation styles. III. Indian Negotiation Styles Business negotiation styles in India are highly influenced by culture (Stephen, 2010). Indians are keen to detail, and analyze every business issue before settling for a deal (Zubko, & Sahay, 2010). Additionally, the family unit is an important player in Indian businesses, and acknowledgement of status is highly upheld. Furthermore, the values of respect and honor must be manifest in the language used in negotiations, as these are of great importance in India (Zubko, & Sahay, 2010). Another highly upheld value in Indian negotiations is feedback. Feedback between the parties in a negotiation allows for the opinions of both parties to be considered, thus Indians attach importance to this (Gesteland, & Gesteland, 2010). Nonetheless, business in India is considered not just a means to profit, but a culture (Martin, and Chaney, 2009). IV. Western Business Negotiation Styles Western cultures are more individualistic and universalistic in nature (Graham & Herberger, 1983). These also unlike Indian cultures, do not prioritize relationships, and will rush in sealing a deal, since they focus on getting things done. Additionally, western cultures tie social status with achievement, unlike the Indians, who rely on their caste system (Graham & Herberger, 1983). According to Salacuse (1999), for western multinational companies in India to succeed in their business, they must align their goals and objectives with the Indian culture. Additionally, learning and practicing the Indian business negotiation styles is paramount, as this will boost business relations with Indians. Therefore, adopting Indian values such as using titles to address business partners, learning the Indian greeting etiquette, and exhibiting high level of trust and honesty, will help a western multinational company to conduct business in India effectively. V. Comparison of Indian and Western Business Negotiation Styles The Indian and western business negotiation styles vary, basing on different factors. First, with regard to relationships, Indians value relationships more than the western cultures. In India, relationships help to develop trust between business partners, and the quality of business is influenced by strong and weak relationships. On the contrary, western cultures do not emphasize relationships, since to them time is money. Therefore, while Indian’s negotiation goal is relationship development, the western negotiation goal is a contract (Macduff, 2006). Additionally, personal styles between western and Indian negotiation styles vary. In Indian negotiation, the style is formal, while it is informal in the western negotiations. In India, it is necessary to address business partners using titles, dressing smartly is important, and a greeting etiquette is upheld. In western business negotiations, addressing people by titles depends on their age and the level of relationship, greeting etiquette mainly depends on the importance of a person, and unless it is a crucial business meeting, suits are not preferred. Furthermore, in the western business negotiations, there is a high sensitivity to time, while in Indian negotiations, sensitivity to time is low. Although both value punctuality, Indians need more time for relationship building, while in the western negotiation, extra time is acceptable, but only for business-related issues (Graham & Herberger, 1983). VI. Conclusion The literature review has provided a critical analysis of the how culture is a major influence on the business negotiation styles of India, as well as the western business negotiation styles. The major differences between Indian and western negotiation styles base on time orientations, communication patterns, and specific national issues and social behavior. Through this knowledge therefore, there is a clear understanding that if both parties involved in business negotiation understand each of their business partner’s culture and elements of their business negotiation styles, it becomes easier to conduct business, as this results in a successful business negotiation. For this reason, the western multinational companies operating in India stand to benefit from this study, as more light is shed on the Indian negotiation styles. In the next section, there will be an outline of the research methodology, which includes the qualitative and quantitative research. In addition, the research tools for data collection will be discussed, and how they will be used to answer the research question in this study. References Choudhary, V., Kshirsagar, A. & Narayanan, A. (2012). Strategy Practice: How Multinationals can win in India. McKinsey Quarterly. Retrieved from http://www.asia.udp.cl/Informes/2012/multinationals_india.pdf Gesteland, R. R., & Gesteland, M. C. (2010). India: Cross-cultural business behavior: for business people, expatriates, and scholars. Frederiksberg: Copenhagen Business School Press. Graham, J. L., & Herberger R.A. (1983). Negotiators abroad- don’t shoot from the hip. Harvard Business Review, 61(4): 160-169. Hart, C. (1998). Doing a Literature Review. London: Sage Publications. Cited in: Cronin, P., Ryan, F., & Coughian, M. (2008). Undertaking a Literature Review: A Step by-step Approach”, British Journal of Nursing, 17 (1): 38-43. Martin, J. S., & Chaney, L. H. (2009). Passport to success: The essential guide to business culture and customs in America's largest trading partners. Westport, Conn: Praeger. Macduff, I. (2006). You’re Pace or Mine? Culture, Time, and Negotiation. Negotiation Journal, 22(1): 31–45. Salacuse, J. W. (1999). Intercultural Negotiation in International Business. Group decision and negotiation, 8(3): 217-236. Salacuse, J.W. (2005). Negotiation: The top ten ways that culture can affect your negotiation. Ivey Business Journals, 69(4), 1-6. Sapsford, R. & Jupp, V. (2006). Data Collection and Analysis. London: SAGE. Stephen, B. (2010). India. London: Kuperard. Zubko, K. C., & Sahay, R. R. (2010). Inside the Indian business mind: A tactical guide for managers. 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