Description
Businesses all over the world today are extending their frontiers beyond domestic markets. In this global business environment, cross cultural negotiation becomes a common field of research.
HOW TO DEAL WITH CROSS
CULTURAL PROBLEMS IN
INTERNATIONAL BUSINESS NEGOTIATION.
EMEM UDOBONG
*
ABSTRACT: Businesses all over the world today are extending their frontiers beyond domestic
markets. In this global business environment, cross cultural negotiation becomes a common field
of research. This is primarily due to the fact that the negotiating parties are often from different
countries, with different cultural values and beliefs which they usually bring with them to the
negotiating table. What is communicated, how it is communicated, how people think and behave
during negotiations can differ across cultures. The purpose of this paper is to examine the effect
of culture on negotiation and suggest ways to deal with cross cultural problems in international
business negotiations. An analytical approach is applied in this research. The conclusion
reached is that effective international negotiators need to know not only the fundamentals of
negotiation, but also how culture can influence the negotiator’s behavior and the negotiation
agreement. Understanding, accepting and respecting the cultural values of the other parties is
very important as it will lead to a more successful outcome.
*
The Author is a legal practitioner and holds an LL.B (Hons) from the Igbinedion University, Okada. She is
currently a postgraduate student of CEPMLP University of Dundee, Scotland, where she is pursuing an LL.M
Degree in Energy Law and Policy.
2
TABLE OF CONTENTS
Page
ABBREVIATIONS
INTRODUCTION………………………………………………………………… 4
CHAPTER ONE
1.0. Negotiation – An Overview……………………………….……………… 5
1.1. Negotiation Strategies…………………………………….………………. 5
1.2 Stages of Negotiation……………………………………….……………... 7
1.3 Principled Negotiation……………………………………….…………… 8
.
CHAPTER TWO
2.0. Culture……………………………………………....................................... 9
2.1 Cultural Dimensions…………………………………….………………… 10
CHAPTER THREE
3.0. Cross Cultural Negotiation……………………………………………..… 12
3.1. Factors that affect Cross Cultural Negotiation………….…..………..…. 12
CHAPTER FOUR
4.0. How to Deal with of Cross Cultural Problems………………………….. 14
4.1. Conclusion…………………………………………………………………. 15
BIBILIOGRAPHY
3
TABLE OF ABBREVIATIONS
ARB. J. ARBITRATION JOURNAL
I. J. P. INTERNATIONAL JOURNAL OF PSYCHOLOGY
N. J. NEGOTIATION JOURNAL
USA UNITED STATES OF AMERICA
4
INTRODUCTION
Negotiation can be basically said to be a means of conflict resolution where two or more parties
attempt to resolve their dispute in a mutually agreed manner. With the globalization of product
markets, where a growing number of business transactions involve foreign customers, suppliers
or joint venturers, cross cultural negotiations take place daily all over the world. In these kinds of
settings, misunderstandings may easily arise during communication. For a negotiation to be
successful, the parties must have not only a good knowledge of the business at hand, but also a
good grasp of the cultural and economic background of each other. Negotiating across cultures is
not about reaching a consensus or maximizing one’s position. It is about respect for the norms of
the negotiating partners and establishing a long term cordial relationship for business.
†
The purpose of this paper is to critically examine the effect of culture on international business
negotiations. This is very important because even though both parties may fully understand the
facts of the business, other factors like words spoken or actions may adversely affect the
outcome of the negotiation. An analytical approach is applied in this research. It is pertinent to
state at this point that this research does not provide guidance on how to negotiate with people of
different cultures on a country by country basis. It however focuses on the skills necessary to
negotiate globally. This is to avoid stereotypes which are often untrue, and also due to the fact
that individuals within the same country may have unique characteristics. Chapter one is a
general overview of negotiation. Chapter two examines culture and the cultural dimensions that
influence negotiation. Chapter three discusses cross cultural negotiation and shows how the
cultural dimensions affect it. Chapter four suggests strategies to deal with the problems of cross
cultural negotiation and concludes the paper based on findings in the course of research.
*†
Seng, T. and Lim, E., Strategies for Effective Cross Cultural Negotiation, The F.R.A.M.E. Approach vii (Singapore:
McGraw Hill Education, 2004).
5
CHAPTER ONE
1.0 NEGOTIATION - AN OVERVIEW
Everyone negotiates at some point in his daily life. Whether it is a wife persuading her husband
to take the family to the Cayman Islands, and not Africa for the holiday, or a child trying to get
her mother to buy her pink shoes and not black shoes, people negotiate daily. This is because
negotiation is the basic means of getting what you want from others.
‡
Several definitions of
negotiation abound. Negotiation deals with situations in which two or more parties recognize that
differences of interests and values exist among them and in which they want to seek a
compromise agreement through negotiation.
§
It is the communication that takes place in order to
reach agreement about how to handle both common and conflicting interests between two or
more parties, and often has an element of persuasion in it.
**
Negotiation is simply a process where two or more parties attempt to resolve perceived
incompatible goals. There are two types of negotiation: it may be transactional which deals with
buying and selling of goods, or it may be geared towards conflict resolution. The first step in
negotiation is preparation. This includes the study of the behavior of the counterpart, a market
survey of product price, rehearsals before going in for the negotiations, and where the negotiator
is the principal party, then a good understanding of what your client is trying to accomplish is of
great importance.
††
Preparation is significant because sufficient knowledge acquired in the
preparation process is power, and this power gives any negotiator leverage at the table.
‡‡
1.1 NEGOTIATION STRATEGIES
After preparation, the negotiator thinks of what strategy to adopt. There are about five
negotiating styles:
‡
Fisher, R., Ury, W., Getting to Yes: Negotiating Agreement Without Giving In xvii (2
nd
Edition) (New York, USA:
Houghton Miffflin Company, 1991).
§
Raiffa, H., The Art and Science of Negotiation 7 (Cambridge MA: Havard University Press, 1982).
**
Varner, I., Beamer, L., Intercultural Communication in the Global Workplace 271 (3
rd
Edition) (New York, USA:
McGraw Hill Co Inc, 2000).
††
Fox, W., International Commercial Agreements: A Functional Primer on Drafting, Negotiating and Resolving
Disputes 97 (3
rd
Edition) (The Hague; Kluwer Law Publishers, 1994).
‡‡
Ibid at 198.
6
Hard v Soft
Ury and Fisher are of the opinion that most people choose from these two styles as their
negotiation strategy. The hard style is where a negotiator views any state of affairs or
circumstance as a ‘contest of wills’ in which the side that takes the most rigid position will
triumph at the end. But this style is criticized because the negotiator exhausts himself and gets an
equally hard response which eventually harms his relationship with the other party.
§§
The soft
style on the other hand, places emphasis on building and sustaining a good relationship. This
style tends to be efficient but may also be fatal. This is because it makes the soft negotiator
vulnerable to the hard negotiator, who may be domineering and exploit the situation to his
advantage. The hard style may be said to be a win-lose strategy, while the soft style is a win-win
strategy. Fox identifies two other strategies; Good Cop v Bad Cop and Boulwarism.
***
Good cop v Bad cop
This is a strategy whereby in the same negotiating team one person acts like a hard negotiator
and adopts the positional or rigid style of negotiation, and his partner adopts the soft strategy so
as to act like the other team from his hard partner. Before any team adopts this strategy, it is
important that the members understand their bargaining range so that they do not end up
negotiating at a loss in the process of trying to ‘outdo’ each other.
Boulwarism
This arises where one party refuses to discuss with the other party. He just drops his position or
offer on the table and expects the other party to ‘take it or leave it’, with no willingness to make
concessions. This may work in some negotiations, but in business negotiations this strategy may
fail as it is too harsh and fewer customers will be willing to do business with such a negotiator.
†††
§§
Fisher, R., Ury, W., (Supra), see note 2, at xviii.
***
Fox, (Supra), see note 5, at 196.
†††
Ibid.
7
1.2 STAGES OF NEGOTIATION
After adopting a strategy, it is time to go in for the actual negotiation process. Four stages have
been identified during negotiations.
‡‡‡
Orientation and Positioning
Orientation takes place when the parties first meet, introduce themselves and exchange
pleasantries. Positioning commences when either party states what he is offering on the
negotiation table.
Argumentation
Here, the argument is not a fierce one. It is the stage where each party tries to understand the
position of the other party. This is where issues like the price of goods or applicable law etc that
relates to the transaction are discussed.
Emergence and Crisis
At this stage, parties begin to see signals showing whether they will reach an agreement or not.
Agreement or Breakdown
This is the final stage where the parties either successfully reach an agreement or fails and the
negotiation breaks down. It is important to state that a successful negotiation is not a ‘win-lose’
but a problem solving approach to a ‘win-win’ outcome. A good outcome is of benefit to both
parties and neither party feels it signed a less advantageous contract. The agreement should
encourage a good relationship and be flexible enough to deal with expected or unexpected future
changes.
§§§
‡‡‡
Williams, G., Legal Negotiation and Settlement 70-72 (Minnesota, USA: West Publishing Co, 1983).
§§§
Ghauri, P., Usunier, J., International Business Negotiations 22 (2
nd
Edition) (Oxford, UK: Pergamon Press, 2003).
8
1.3 PRINCIPLED NEGOTIATION
Fisher and Ury have suggested a way to achieve successful negotiation and still be decent. This
is called Principled Negotiation,
****
and the rules to abide by are;
Separate people from the problem
Every negotiator must recognize that the parties are first and foremost human beings who have
emotions and deeply held values, and from a background different from his own. He should try
at all times to separate the personalities from the present problem.
Focus on interests and not positions
Interests refer to the concerns, needs, and underlying desires of people affected by the
negotiation.
††††
This should be the focus of the negotiation. Where the parties whose interests
will significantly influence the implementation of the negotiated agreement are not on the
negotiating table and are represented, it is important to recognize who these parties are and
understand their interests.
‡‡‡‡
Logically, if both parties have the same set objectives, they are
more likely to be cooperative than if their aims are diametrically opposed.
§§§§
Create options for mutual gain
This will be a necessity where it is difficult to arrive at an agreement. This can be resolved where
a party offers suggestion that covers shared interests of both parties and reconciles their
differences.
Insist on objective criteria
Where a negotiator is proving rigid and unwilling to make concessions, the other may counter
this attitude by asking that the parties’ agreement be determined by a neutral and fair standard.
This will avoid neither party having to give in to the other’s position.
****
Fisher, R., Ury, W., (Supra), see note 2, at xvii.
††††
Brett, J., Negotiating Globally: How to Negotiate Deals, Resolve Disputes, and make Decisions Across Cultural
Boundaries 9 (2
nd
Edition) (San Francisco, USA: Jossey Bass, 2007).
‡‡‡‡
Ibid.
§§§§
Ghauri, P., Usunier, J., (Supra), see note 11, at 58.
9
Know your BATNA
BATNA means Best Alternative to a Negotiated Settlement. Knowing your BATNA means
knowing your best option if the negotiation fails. This is very important in negotiation because
the better your BATNA, the more leverage you have and can thus demand from the other party
in the negotiation. Where parties determine each other’s BATNA, they can prepare better for
negotiation. If they have attractive BATNAs, then the best outcome for both parties may be not
to reach an agreement.
*****
CHAPTER TWO
2.0 CULTURE
Culture has been defined by many people in geographical terms but culture is much more than
the characteristics of nations. It is a unique character of a social group; the values and norms
shared by its members set it apart from other social groups.
†††††
‘Culture is not something
tangible, a “thing”; it is not a commodity possessed uniformly by every member of a community
nor is it a set of quaint customs to be learned before a trip abroad. Rather it can be thought of as
the shared “common sense”… “the realm of the given and the undeniable”, that shapes a group’s
view of the world, enabling it to live together and survive in a certain habitat’. Indeed, culture
permits community, because without it communication, coordinated activity, social life itself
would be impossible.
Culture, in short, rests on shared meaning permitting members of a group to perceive, interpret,
evaluate, and act on and in both external and internal reality’.
‡‡‡‡‡
Put simply, culture is the
totality of learnt meanings, values, norms, and customs shared by a society. Due to the fact that
all negotiations take place in a socio-cultural environment, the culture of such a place will greatly
influence the way the negotiators act, behave or perceive communications, both verbal or non
verbal during negotiations. To negotiate an international business transaction successfully, it is
*****
Seng, T., Lim, E., (Supra), see note 1, at 17.
†††††
Thompson, L., The Mind and Heart of the Negotiator 244 (3
rd
Edition) (New Jersey, USA: Pearson Education
Inc., 2005).
‡‡‡‡‡
Cohen, R., Negotiating Across Cultures 12 (2
nd
Edition) (Washington, USA: United States Institute of Peace
Press, 1997).
10
important that one appreciates and develops suitable responses, where required, to cultural
attitudes and expectations. Insight into these norms is vital to the negotiation, documentation and
performance of every type of international transaction.
§§§§§
2.1 CULTURAL DIMENSIONS
There are four cultural dimensions which are most likely to affect the negotiation process;
******
• Individualism versus Collectivism
• Hierarchical versus Egalitarianism
• Indirect communication versus Direct communication
• Monochromic or polychromic
Individualistic versus Collectivist Cultures
Individualistic cultures promote the dominant feature of personal happiness and welfare. It is the
degree to which a particular society values independence of self as against loyalty to others.
††††††
This culture sees the individual as an autonomous and independent entity from groups.
Collectivist cultures emphasize the welfare of the group. The group is the main source of
identity. People are integrated into strong, cohesive groups who protect them and demand loyalty
throughout their lifetime.
‡‡‡‡‡‡
Hierarchical versus Egalitarian Cultures
In hierarchical cultures, a lot of importance is attached to the status of any individual. Status
determines the degree or amount of social power which any person possesses in that society, and
this power is not easily changed. The social inferiors are expected to submit to the social
superiors, who in turn are expected to protect the interests of the social inferiors. On the other
§§§§§
Cricillo, R., Fremantle, A., Hamburg, J., International Negotiations: A Cultural Perspective, The ABA Guide to
International Business Negotiations; A Comparison of Cross Cultural Issues and Successful Approaches 38 (2
nd
Edition) (Chicago, USA: ABA Publishing, 2000).
******
Brett, J., Adair, W., Lempereur, A., Okumara, T., Shikhirev, P., Tinsley, C., Lytle, A., Culture and Gains in
Negotiation, 14 N. J. 1, 63 (1998).
††††††
See Seng, T., Lim, E., supra note 1, at 20.
‡‡‡‡‡‡
Ibid at 21.
11
hand, egalitarian cultures treat everyone as equals. There is less dependence on superiors and
more interdependence. Social boundaries that exist in these societies are easily permeated and
the members are encouraged to resolve their disputes themselves. Features of mutuality and
shared initiatives are dominant in this culture such that any superior social status may be short-
lived.
§§§§§§
In hierarchical culture, conflict is less likely as people rarely challenge the authority
but this is not the case in egalitarian societies.
Direct or Indirect Communication Cultures
In direct cultures, words are spoken explicitly and meanings are inferred from what is said and
not how it is said. Information is directly provided without nuance and this type of
communication is common in individualistic societies. However, in indirect societies,
information is inferred from how things are said and not what is said. Messages are transmitted
implicitly, and communication is elusive.
*******
This type of communication is prevalent in
societies where there are close personal relationships among family and friends, colleagues
etc.
†††††††
Monochromic versus Polychromic Cultures
In monochromic cultures, keeping to time or any appointment is very important, and schedules
are strictly adhered to. Polychromic cultures on the other hand, see time as very flexible and
schedules may be adjusted at the very last minute. The concept of time in these cultures is
closely tied to personal relationships.
‡‡‡‡‡‡‡
In a monochromic society, the depth of the
relationship does not matter as all schedules are kept. But in polychromic societies, an
appointment may only be strictly adhered to if the other party is close.
§§§§§§
Brett, J., Culture and Negotiation, 35 I. J.P. 2, 100 (2000).
*******
See Thompson, supra note 2, at 257.
†††††††
See Seng, T., Lim, E., supra note 1, at 32.
‡‡‡‡‡‡‡
Victor, D., Cultural Awareness, See ABA Guide, supra note 4, at 110.
12
CHAPTER THREE
3.0 CROSS CULTURAL NEGOTIATION
Cross Cultural negotiation is said to take place where the parties are from different backgrounds,
and thus have different cultural beliefs and attitudes.
§§§§§§§
When walking into the negotiation
hall, a party is faced with the following questions; how can I start a good negotiation with people
I don’t know? What do these people like or dislike? When do I need to use an agent rather than
myself? To effectively answer these questions, one must understand that the other side are
human beings and are members of some form of culture. These cultures affect the way the way
they communicate, think and behave. It affects the kind of transactions they enter into and the
way they negotiate such transactions.
********
It is thus very important to understand the culture of
the negotiating parties or else barriers may be created which will impede or even lead to failure
of the whole negotiating process.
3.1 FACTORS INFLUENCING CROSS CULTURAL NEGOTIATION
Factors that influence cross cultural negotiation are the cultural dimensions discussed in the
preceding chapter. This is an examination of how these cultural dimensions affect the negotiation
process in cross cultural negotiation.
Motivation
Motivation has to do with the interests and goals sought to be achieved. The drive to achieve
these goals affects how the parties behave. People from individualistic cultures tend to be driven
by self interest and do not care how good or bad the negotiation process is going as long as they
are achieving their aim. The collectivists, on the other hand, tend to be more cooperative due to
their identification with in-groups. They are sensitive to the needs of others and their goal is to
achieve a satisfactory agreement for both parties.
††††††††
While individualists adopt a win-lose
style of negotiation, the collective culture embraces a win-win approach.
§§§§§§§
Fox, W., (Supra), see note 5, at 200.
********
Salacuse, J., Ten Ways that Culture Affects Negotiation Style: Some Survey Results, 14 N. J. 3, 221 (1998).
††††††††
Brett, J., (Supra), see note 22, at 100.
13
Power Distance (Influence)
This refers to the power distance and the acceptance of authority difference between people. In
hierarchical societies, power distance is high, and influence is determined by one’s position in
the society. For e.g. A Chief Executive Officer (CEO) will expect to negotiate with another
CEO, where the other party sends a lower ranked officer to negotiate with the CEO, it may be
taken as an insult. During negotiations, different levels of consent may be required, and it is
necessary to ensure that such consent is obtained, or else all efforts made may be fatal. E.g. in
one failed negotiation, the central government in China voided McDonald’s long standing
agreement with the Beijing City government because leases of longer than ten years required the
central government’s approval.
‡‡‡‡‡‡‡‡
Egalitarian societies have a low power distance and the
concept of BATNA is used frequently by negotiators from this society as a source of negotiating
power. Parties from this society are able to make quicker decisions at the table and do not need
to obtain consent from a higher authority as everyone is treated as equal.
Communication
Information is the currency of negotiation,
§§§§§§§§
and the way it is shared varies across cultures.
How parties communicate in their culture will affect how information is shared during
negotiations. While parties from direct cultures will share information through asking questions
directly and getting answers, indirect cultures prefer sharing information through telling stories
and gleaning information from proposals.
*********
A confrontation of these communication styles
can lead to friction.
Time
Monochromic cultures view time as very valuable, thus they adhere to strict schedules and are
punctual. Being late is frowned upon and viewed as an insult. Polychromic cultures however
view time as flexible and will initially try to build a relationship. They will see the rush of the
other party to get an agreement as a proof of something to hide. While a party from the
monochromic culture will want the negotiation to be done one thing at a time in a chronological
‡‡‡‡‡‡‡‡
Thompson, L., (Supra), see note 17, at 256.
§§§§§§§§
Seng, T., Lim, E., (Supra), see note 1, at 38.
*********
Brett, J. et al, (Supra), see note 20, at 62.
14
order, the other party from a polychromic culture may see this process as slow and want to do a
number of things simultaneously.
CHAPTER FOUR
4.0 HOW TO DEAL WITH CROSS CULTURAL PROBLEMS IN INTERNATIONAL
BUSINESS NEGOTIATION
Negotiating across cultures poses a great challenge to any negotiator. Here are some suggestions
on how to deal with the problems of cross cultural negotiation.
Preparation
The importance of preparation in negotiation cannot be overemphasized. This will include
rehearsals and a study of the cultural background of the other side. This is very critical because it
will show that one has respect for the other side’s culture, thereby building credibility and trust
right from the onset. This will also help in deciding the right tactics to use so as not to irritate or
annoy the members of the other culture. Understanding the nuances and taboos and avoiding
them will smoothen out the negotiation process. It is also necessary to leave a long time frame
for the negotiation. This is because cross cultural negotiation often lasts between two to six times
as long to reach an agreement as it would take domestically.
†††††††††
Avoid Stereotypes
For successful cross cultural negotiation, one must get beyond one’s own cultural stereotypes
and misconceptions.
‡‡‡‡‡‡‡‡‡
Though cultural stereotypes are common, they often have no basis in
reality. Making assumptions will only build distrust and create barriers which negatively affect
the goals of both parties. Rather than generalizing, it is better to make an effort to treat everyone
as individuals. Try to discover the other side’s beliefs and values free from those of the culture
being represented.
†††††††††
Hendon, D., Hendon, R., Herbig, P., Cross Cultural Business Negotiations 232 (Westport, USA: Praegar
Publishers, 1996).
‡‡‡‡‡‡‡‡‡
Garcha, A., Diplomatic Culture or Cultural Diplomacy: The Role for Culture in International Negotiation at
http://www.culturaldiplomacy.org/content/pdf/icd_diplomatic_culture_of_cultural_diplomacy.pdf (last visited,
July 23, 2009).
15
Agent/Interpreter
It may be helpful in some situations to enlist the services of an agent who is more knowledgeable
in the other side’s cultural norms and values. This approach however has advantages and
disadvantages and must be weighed carefully. There may also be the need to hire an interpreter
where there is language barrier. The interpreter helps to facilitate mutual understanding and
comprehension.
§§§§§§§§§
Discover new ways to bridge cultural gaps
In doing this, the parties may use a combination of both cultures or focus on the norms of a
common professional culture. A survey carried out by Salacuse suggests that professional culture
may be as strong as national culture in influencing a person’s negotiation style.
**********
The
impact of this study, if true, will be that when faced with a cultural difference at the table,
negotiators from different cultures but similar professional backgrounds may rely on the norms
of their professional culture in trying to bridge the cultural gap between them.
Finally, when going for a cross cultural negotiation, a good negotiator needs to be relaxed. He
must show openness towards meeting the other party. Ability to apologize if he says or does
something that is out of place, and continuing to show a strong desire to proceed with the
negotiation are positive characteristics for the process. Being warm and communicative with a
desire to initiate conversation will ensure good communication. This will therefore guarantee
success as great communication is crucial for effective cross cultural negotiation.
4.1 CONCLUSION
There is really no ‘best way’ to approach a dispute. How you begin a dispute resolution
negotiation should be a strategic choice based on careful analysis of the parties, their goals and
the situation. In cross cultural negotiation, one should always try to apply the method of
§§§§§§§§§
Varner, I., Beamer, L., (Supra), see note 4, at 56.
**********
Salacuse, J., (Supra), see note 27, at 238.
16
principled negotiation.
††††††††††
This requires separating people from the problem and focusing
on their interests. Where there is an impasse, create options for mutual gain. This will help both
parties achieve their goals easily. Preparation, understanding and success are strongly linked.
Preparation by researching the cultural background of the other party is very important in cross
cultural negotiation. A negotiator who has effectively prepared will understand the negotiation
style of those on the other side of the table, accept and respect their cultural beliefs and norms.
He is conscious of personal mannerisms and how they are viewed by the other party. These
efforts will be greatly appreciated by the counterpart negotiator. It will result in greater respect,
greater success and a long lasting business relationship.
‡‡‡‡‡‡‡‡‡‡
††††††††††
Corne, P., The Complex Art of Negotiation Between Different Cultures, 47 ARB. J. 4, 50 (1992).
‡‡‡‡‡‡‡‡‡‡
Ibid.
17
BIBILIOGRAPHY
PRIMARY SOURCES
None used
SECONDARY SOURCES
Books
Brett, J., Negotiating Globally: How to Negotiate Deals, Resolve Disputes, and make
Decisions Across Cultural Boundaries 9 (2
nd
Edition) (San Francisco, USA: Jossey Bass,
2007).
Cohen, R., Negotiating Across Cultures (2
nd
Edition) (Washington, USA: United States
Institute of Peace Press, 1997).
Fisher, R., Ury, W., Getting to Yes: Negotiating Agreement Without Giving In (2
nd
Edition) (New York, USA: Houghton Miffflin Company, 1991).
Fox, W., International Commercial Agreements: A Functional Primer on Drafting,
Negotiating and Resolving Disputes (3
rd
Edition) (The Hague; Kluwer Law Publishers,
1994).
Ghauri, P., Usunier, J., International Business Negotiations (2
nd
Edition) (Oxford, UK:
Pergamon Press, 2003).
Hendon, D., Hendon, R., Herbig, P., Cross Cultural Business Negotiations (Westport,
USA: Praegar Publishers, 1996).
Raiffa, H., The Art and Science of Negotiation (Cambridge MA: Havard University
Press, 1982).
18
Seng, T. and Lim, E., Strategies for Effective Cross Cultural Negotiation, The
F.R.A.M.E. Approach (Singapore: McGraw Hill Education, 2004).
The ABA Guide to International Business Negotiations; A Comparison of Cross Cultural
Issues and Successful Approaches (2
nd
Edition) (Chicago, USA: ABA Publishing, 2000).
Thompson, L., The Mind and Heart of the Negotiator (3
rd
Edition) (New Jersey, USA:
Pearson Education Inc., 2005).
Varner, I., Beamer, L., Intercultural Communication in the Global Workplace (3
rd
Edition) (New York, USA: McGraw Hill Co Inc, 2000).
Williams, G., Legal Negotiation and Settlement (Minnesota, USA: West Publishing Co,
1983).
Articles
IN A BOOK
Cricillo, R., Fremantle, A., Hamburg, J., International Negotiations: A Cultural
Perspective, The ABA Guide to International Business Negotiations; A Comparison of
Cross Cultural Issues and Successful Approaches (2
nd
Edition) (Chicago, USA: ABA
Publishing, 2000).
Victor, D., Cultural Awareness, The ABA Guide to International Business Negotiations;
A Comparison of Cross Cultural Issues and Successful Approaches (2
nd
Edition)
(Chicago, USA: ABA Publishing, 2000).
19
IN A PERIODICAL
Brett, J., Adair, W., Lempereur, A., Okumara, T., Shikhirev, P., Tinsley, C., Lytle, A.,
Culture and Gains in Negotiation, 14 N. J. 1, 63 (1998).
Brett, J., Culture and Negotiation, 35 I. J.P. 2, 100 (2000).
Corne, P., The Complex Art of Negotiation Between Different Cultures, 47 ARB. J. 4, 50
(1992).
Salacuse, J., Ten Ways that Culture Affects Negotiation Style: Some Survey Results, 14 N.
J. 3, 221 (1998).
OTHER
Internet
Garcha, A., Diplomatic Culture or Cultural Diplomacy: The Role for Culture in
International Negotiation at
http://www.culturaldiplomacy.org/content/pdf/icd_diplomatic_culture_of_cultural_diplo
macy.pdf (last visited, July 23, 2009).
doc_457936980.pdf
Businesses all over the world today are extending their frontiers beyond domestic markets. In this global business environment, cross cultural negotiation becomes a common field of research.
HOW TO DEAL WITH CROSS
CULTURAL PROBLEMS IN
INTERNATIONAL BUSINESS NEGOTIATION.
EMEM UDOBONG
*
ABSTRACT: Businesses all over the world today are extending their frontiers beyond domestic
markets. In this global business environment, cross cultural negotiation becomes a common field
of research. This is primarily due to the fact that the negotiating parties are often from different
countries, with different cultural values and beliefs which they usually bring with them to the
negotiating table. What is communicated, how it is communicated, how people think and behave
during negotiations can differ across cultures. The purpose of this paper is to examine the effect
of culture on negotiation and suggest ways to deal with cross cultural problems in international
business negotiations. An analytical approach is applied in this research. The conclusion
reached is that effective international negotiators need to know not only the fundamentals of
negotiation, but also how culture can influence the negotiator’s behavior and the negotiation
agreement. Understanding, accepting and respecting the cultural values of the other parties is
very important as it will lead to a more successful outcome.
*
The Author is a legal practitioner and holds an LL.B (Hons) from the Igbinedion University, Okada. She is
currently a postgraduate student of CEPMLP University of Dundee, Scotland, where she is pursuing an LL.M
Degree in Energy Law and Policy.
2
TABLE OF CONTENTS
Page
ABBREVIATIONS
INTRODUCTION………………………………………………………………… 4
CHAPTER ONE
1.0. Negotiation – An Overview……………………………….……………… 5
1.1. Negotiation Strategies…………………………………….………………. 5
1.2 Stages of Negotiation……………………………………….……………... 7
1.3 Principled Negotiation……………………………………….…………… 8
.
CHAPTER TWO
2.0. Culture……………………………………………....................................... 9
2.1 Cultural Dimensions…………………………………….………………… 10
CHAPTER THREE
3.0. Cross Cultural Negotiation……………………………………………..… 12
3.1. Factors that affect Cross Cultural Negotiation………….…..………..…. 12
CHAPTER FOUR
4.0. How to Deal with of Cross Cultural Problems………………………….. 14
4.1. Conclusion…………………………………………………………………. 15
BIBILIOGRAPHY
3
TABLE OF ABBREVIATIONS
ARB. J. ARBITRATION JOURNAL
I. J. P. INTERNATIONAL JOURNAL OF PSYCHOLOGY
N. J. NEGOTIATION JOURNAL
USA UNITED STATES OF AMERICA
4
INTRODUCTION
Negotiation can be basically said to be a means of conflict resolution where two or more parties
attempt to resolve their dispute in a mutually agreed manner. With the globalization of product
markets, where a growing number of business transactions involve foreign customers, suppliers
or joint venturers, cross cultural negotiations take place daily all over the world. In these kinds of
settings, misunderstandings may easily arise during communication. For a negotiation to be
successful, the parties must have not only a good knowledge of the business at hand, but also a
good grasp of the cultural and economic background of each other. Negotiating across cultures is
not about reaching a consensus or maximizing one’s position. It is about respect for the norms of
the negotiating partners and establishing a long term cordial relationship for business.
†
The purpose of this paper is to critically examine the effect of culture on international business
negotiations. This is very important because even though both parties may fully understand the
facts of the business, other factors like words spoken or actions may adversely affect the
outcome of the negotiation. An analytical approach is applied in this research. It is pertinent to
state at this point that this research does not provide guidance on how to negotiate with people of
different cultures on a country by country basis. It however focuses on the skills necessary to
negotiate globally. This is to avoid stereotypes which are often untrue, and also due to the fact
that individuals within the same country may have unique characteristics. Chapter one is a
general overview of negotiation. Chapter two examines culture and the cultural dimensions that
influence negotiation. Chapter three discusses cross cultural negotiation and shows how the
cultural dimensions affect it. Chapter four suggests strategies to deal with the problems of cross
cultural negotiation and concludes the paper based on findings in the course of research.
*†
Seng, T. and Lim, E., Strategies for Effective Cross Cultural Negotiation, The F.R.A.M.E. Approach vii (Singapore:
McGraw Hill Education, 2004).
5
CHAPTER ONE
1.0 NEGOTIATION - AN OVERVIEW
Everyone negotiates at some point in his daily life. Whether it is a wife persuading her husband
to take the family to the Cayman Islands, and not Africa for the holiday, or a child trying to get
her mother to buy her pink shoes and not black shoes, people negotiate daily. This is because
negotiation is the basic means of getting what you want from others.
‡
Several definitions of
negotiation abound. Negotiation deals with situations in which two or more parties recognize that
differences of interests and values exist among them and in which they want to seek a
compromise agreement through negotiation.
§
It is the communication that takes place in order to
reach agreement about how to handle both common and conflicting interests between two or
more parties, and often has an element of persuasion in it.
**
Negotiation is simply a process where two or more parties attempt to resolve perceived
incompatible goals. There are two types of negotiation: it may be transactional which deals with
buying and selling of goods, or it may be geared towards conflict resolution. The first step in
negotiation is preparation. This includes the study of the behavior of the counterpart, a market
survey of product price, rehearsals before going in for the negotiations, and where the negotiator
is the principal party, then a good understanding of what your client is trying to accomplish is of
great importance.
††
Preparation is significant because sufficient knowledge acquired in the
preparation process is power, and this power gives any negotiator leverage at the table.
‡‡
1.1 NEGOTIATION STRATEGIES
After preparation, the negotiator thinks of what strategy to adopt. There are about five
negotiating styles:
‡
Fisher, R., Ury, W., Getting to Yes: Negotiating Agreement Without Giving In xvii (2
nd
Edition) (New York, USA:
Houghton Miffflin Company, 1991).
§
Raiffa, H., The Art and Science of Negotiation 7 (Cambridge MA: Havard University Press, 1982).
**
Varner, I., Beamer, L., Intercultural Communication in the Global Workplace 271 (3
rd
Edition) (New York, USA:
McGraw Hill Co Inc, 2000).
††
Fox, W., International Commercial Agreements: A Functional Primer on Drafting, Negotiating and Resolving
Disputes 97 (3
rd
Edition) (The Hague; Kluwer Law Publishers, 1994).
‡‡
Ibid at 198.
6
Hard v Soft
Ury and Fisher are of the opinion that most people choose from these two styles as their
negotiation strategy. The hard style is where a negotiator views any state of affairs or
circumstance as a ‘contest of wills’ in which the side that takes the most rigid position will
triumph at the end. But this style is criticized because the negotiator exhausts himself and gets an
equally hard response which eventually harms his relationship with the other party.
§§
The soft
style on the other hand, places emphasis on building and sustaining a good relationship. This
style tends to be efficient but may also be fatal. This is because it makes the soft negotiator
vulnerable to the hard negotiator, who may be domineering and exploit the situation to his
advantage. The hard style may be said to be a win-lose strategy, while the soft style is a win-win
strategy. Fox identifies two other strategies; Good Cop v Bad Cop and Boulwarism.
***
Good cop v Bad cop
This is a strategy whereby in the same negotiating team one person acts like a hard negotiator
and adopts the positional or rigid style of negotiation, and his partner adopts the soft strategy so
as to act like the other team from his hard partner. Before any team adopts this strategy, it is
important that the members understand their bargaining range so that they do not end up
negotiating at a loss in the process of trying to ‘outdo’ each other.
Boulwarism
This arises where one party refuses to discuss with the other party. He just drops his position or
offer on the table and expects the other party to ‘take it or leave it’, with no willingness to make
concessions. This may work in some negotiations, but in business negotiations this strategy may
fail as it is too harsh and fewer customers will be willing to do business with such a negotiator.
†††
§§
Fisher, R., Ury, W., (Supra), see note 2, at xviii.
***
Fox, (Supra), see note 5, at 196.
†††
Ibid.
7
1.2 STAGES OF NEGOTIATION
After adopting a strategy, it is time to go in for the actual negotiation process. Four stages have
been identified during negotiations.
‡‡‡
Orientation and Positioning
Orientation takes place when the parties first meet, introduce themselves and exchange
pleasantries. Positioning commences when either party states what he is offering on the
negotiation table.
Argumentation
Here, the argument is not a fierce one. It is the stage where each party tries to understand the
position of the other party. This is where issues like the price of goods or applicable law etc that
relates to the transaction are discussed.
Emergence and Crisis
At this stage, parties begin to see signals showing whether they will reach an agreement or not.
Agreement or Breakdown
This is the final stage where the parties either successfully reach an agreement or fails and the
negotiation breaks down. It is important to state that a successful negotiation is not a ‘win-lose’
but a problem solving approach to a ‘win-win’ outcome. A good outcome is of benefit to both
parties and neither party feels it signed a less advantageous contract. The agreement should
encourage a good relationship and be flexible enough to deal with expected or unexpected future
changes.
§§§
‡‡‡
Williams, G., Legal Negotiation and Settlement 70-72 (Minnesota, USA: West Publishing Co, 1983).
§§§
Ghauri, P., Usunier, J., International Business Negotiations 22 (2
nd
Edition) (Oxford, UK: Pergamon Press, 2003).
8
1.3 PRINCIPLED NEGOTIATION
Fisher and Ury have suggested a way to achieve successful negotiation and still be decent. This
is called Principled Negotiation,
****
and the rules to abide by are;
Separate people from the problem
Every negotiator must recognize that the parties are first and foremost human beings who have
emotions and deeply held values, and from a background different from his own. He should try
at all times to separate the personalities from the present problem.
Focus on interests and not positions
Interests refer to the concerns, needs, and underlying desires of people affected by the
negotiation.
††††
This should be the focus of the negotiation. Where the parties whose interests
will significantly influence the implementation of the negotiated agreement are not on the
negotiating table and are represented, it is important to recognize who these parties are and
understand their interests.
‡‡‡‡
Logically, if both parties have the same set objectives, they are
more likely to be cooperative than if their aims are diametrically opposed.
§§§§
Create options for mutual gain
This will be a necessity where it is difficult to arrive at an agreement. This can be resolved where
a party offers suggestion that covers shared interests of both parties and reconciles their
differences.
Insist on objective criteria
Where a negotiator is proving rigid and unwilling to make concessions, the other may counter
this attitude by asking that the parties’ agreement be determined by a neutral and fair standard.
This will avoid neither party having to give in to the other’s position.
****
Fisher, R., Ury, W., (Supra), see note 2, at xvii.
††††
Brett, J., Negotiating Globally: How to Negotiate Deals, Resolve Disputes, and make Decisions Across Cultural
Boundaries 9 (2
nd
Edition) (San Francisco, USA: Jossey Bass, 2007).
‡‡‡‡
Ibid.
§§§§
Ghauri, P., Usunier, J., (Supra), see note 11, at 58.
9
Know your BATNA
BATNA means Best Alternative to a Negotiated Settlement. Knowing your BATNA means
knowing your best option if the negotiation fails. This is very important in negotiation because
the better your BATNA, the more leverage you have and can thus demand from the other party
in the negotiation. Where parties determine each other’s BATNA, they can prepare better for
negotiation. If they have attractive BATNAs, then the best outcome for both parties may be not
to reach an agreement.
*****
CHAPTER TWO
2.0 CULTURE
Culture has been defined by many people in geographical terms but culture is much more than
the characteristics of nations. It is a unique character of a social group; the values and norms
shared by its members set it apart from other social groups.
†††††
‘Culture is not something
tangible, a “thing”; it is not a commodity possessed uniformly by every member of a community
nor is it a set of quaint customs to be learned before a trip abroad. Rather it can be thought of as
the shared “common sense”… “the realm of the given and the undeniable”, that shapes a group’s
view of the world, enabling it to live together and survive in a certain habitat’. Indeed, culture
permits community, because without it communication, coordinated activity, social life itself
would be impossible.
Culture, in short, rests on shared meaning permitting members of a group to perceive, interpret,
evaluate, and act on and in both external and internal reality’.
‡‡‡‡‡
Put simply, culture is the
totality of learnt meanings, values, norms, and customs shared by a society. Due to the fact that
all negotiations take place in a socio-cultural environment, the culture of such a place will greatly
influence the way the negotiators act, behave or perceive communications, both verbal or non
verbal during negotiations. To negotiate an international business transaction successfully, it is
*****
Seng, T., Lim, E., (Supra), see note 1, at 17.
†††††
Thompson, L., The Mind and Heart of the Negotiator 244 (3
rd
Edition) (New Jersey, USA: Pearson Education
Inc., 2005).
‡‡‡‡‡
Cohen, R., Negotiating Across Cultures 12 (2
nd
Edition) (Washington, USA: United States Institute of Peace
Press, 1997).
10
important that one appreciates and develops suitable responses, where required, to cultural
attitudes and expectations. Insight into these norms is vital to the negotiation, documentation and
performance of every type of international transaction.
§§§§§
2.1 CULTURAL DIMENSIONS
There are four cultural dimensions which are most likely to affect the negotiation process;
******
• Individualism versus Collectivism
• Hierarchical versus Egalitarianism
• Indirect communication versus Direct communication
• Monochromic or polychromic
Individualistic versus Collectivist Cultures
Individualistic cultures promote the dominant feature of personal happiness and welfare. It is the
degree to which a particular society values independence of self as against loyalty to others.
††††††
This culture sees the individual as an autonomous and independent entity from groups.
Collectivist cultures emphasize the welfare of the group. The group is the main source of
identity. People are integrated into strong, cohesive groups who protect them and demand loyalty
throughout their lifetime.
‡‡‡‡‡‡
Hierarchical versus Egalitarian Cultures
In hierarchical cultures, a lot of importance is attached to the status of any individual. Status
determines the degree or amount of social power which any person possesses in that society, and
this power is not easily changed. The social inferiors are expected to submit to the social
superiors, who in turn are expected to protect the interests of the social inferiors. On the other
§§§§§
Cricillo, R., Fremantle, A., Hamburg, J., International Negotiations: A Cultural Perspective, The ABA Guide to
International Business Negotiations; A Comparison of Cross Cultural Issues and Successful Approaches 38 (2
nd
Edition) (Chicago, USA: ABA Publishing, 2000).
******
Brett, J., Adair, W., Lempereur, A., Okumara, T., Shikhirev, P., Tinsley, C., Lytle, A., Culture and Gains in
Negotiation, 14 N. J. 1, 63 (1998).
††††††
See Seng, T., Lim, E., supra note 1, at 20.
‡‡‡‡‡‡
Ibid at 21.
11
hand, egalitarian cultures treat everyone as equals. There is less dependence on superiors and
more interdependence. Social boundaries that exist in these societies are easily permeated and
the members are encouraged to resolve their disputes themselves. Features of mutuality and
shared initiatives are dominant in this culture such that any superior social status may be short-
lived.
§§§§§§
In hierarchical culture, conflict is less likely as people rarely challenge the authority
but this is not the case in egalitarian societies.
Direct or Indirect Communication Cultures
In direct cultures, words are spoken explicitly and meanings are inferred from what is said and
not how it is said. Information is directly provided without nuance and this type of
communication is common in individualistic societies. However, in indirect societies,
information is inferred from how things are said and not what is said. Messages are transmitted
implicitly, and communication is elusive.
*******
This type of communication is prevalent in
societies where there are close personal relationships among family and friends, colleagues
etc.
†††††††
Monochromic versus Polychromic Cultures
In monochromic cultures, keeping to time or any appointment is very important, and schedules
are strictly adhered to. Polychromic cultures on the other hand, see time as very flexible and
schedules may be adjusted at the very last minute. The concept of time in these cultures is
closely tied to personal relationships.
‡‡‡‡‡‡‡
In a monochromic society, the depth of the
relationship does not matter as all schedules are kept. But in polychromic societies, an
appointment may only be strictly adhered to if the other party is close.
§§§§§§
Brett, J., Culture and Negotiation, 35 I. J.P. 2, 100 (2000).
*******
See Thompson, supra note 2, at 257.
†††††††
See Seng, T., Lim, E., supra note 1, at 32.
‡‡‡‡‡‡‡
Victor, D., Cultural Awareness, See ABA Guide, supra note 4, at 110.
12
CHAPTER THREE
3.0 CROSS CULTURAL NEGOTIATION
Cross Cultural negotiation is said to take place where the parties are from different backgrounds,
and thus have different cultural beliefs and attitudes.
§§§§§§§
When walking into the negotiation
hall, a party is faced with the following questions; how can I start a good negotiation with people
I don’t know? What do these people like or dislike? When do I need to use an agent rather than
myself? To effectively answer these questions, one must understand that the other side are
human beings and are members of some form of culture. These cultures affect the way the way
they communicate, think and behave. It affects the kind of transactions they enter into and the
way they negotiate such transactions.
********
It is thus very important to understand the culture of
the negotiating parties or else barriers may be created which will impede or even lead to failure
of the whole negotiating process.
3.1 FACTORS INFLUENCING CROSS CULTURAL NEGOTIATION
Factors that influence cross cultural negotiation are the cultural dimensions discussed in the
preceding chapter. This is an examination of how these cultural dimensions affect the negotiation
process in cross cultural negotiation.
Motivation
Motivation has to do with the interests and goals sought to be achieved. The drive to achieve
these goals affects how the parties behave. People from individualistic cultures tend to be driven
by self interest and do not care how good or bad the negotiation process is going as long as they
are achieving their aim. The collectivists, on the other hand, tend to be more cooperative due to
their identification with in-groups. They are sensitive to the needs of others and their goal is to
achieve a satisfactory agreement for both parties.
††††††††
While individualists adopt a win-lose
style of negotiation, the collective culture embraces a win-win approach.
§§§§§§§
Fox, W., (Supra), see note 5, at 200.
********
Salacuse, J., Ten Ways that Culture Affects Negotiation Style: Some Survey Results, 14 N. J. 3, 221 (1998).
††††††††
Brett, J., (Supra), see note 22, at 100.
13
Power Distance (Influence)
This refers to the power distance and the acceptance of authority difference between people. In
hierarchical societies, power distance is high, and influence is determined by one’s position in
the society. For e.g. A Chief Executive Officer (CEO) will expect to negotiate with another
CEO, where the other party sends a lower ranked officer to negotiate with the CEO, it may be
taken as an insult. During negotiations, different levels of consent may be required, and it is
necessary to ensure that such consent is obtained, or else all efforts made may be fatal. E.g. in
one failed negotiation, the central government in China voided McDonald’s long standing
agreement with the Beijing City government because leases of longer than ten years required the
central government’s approval.
‡‡‡‡‡‡‡‡
Egalitarian societies have a low power distance and the
concept of BATNA is used frequently by negotiators from this society as a source of negotiating
power. Parties from this society are able to make quicker decisions at the table and do not need
to obtain consent from a higher authority as everyone is treated as equal.
Communication
Information is the currency of negotiation,
§§§§§§§§
and the way it is shared varies across cultures.
How parties communicate in their culture will affect how information is shared during
negotiations. While parties from direct cultures will share information through asking questions
directly and getting answers, indirect cultures prefer sharing information through telling stories
and gleaning information from proposals.
*********
A confrontation of these communication styles
can lead to friction.
Time
Monochromic cultures view time as very valuable, thus they adhere to strict schedules and are
punctual. Being late is frowned upon and viewed as an insult. Polychromic cultures however
view time as flexible and will initially try to build a relationship. They will see the rush of the
other party to get an agreement as a proof of something to hide. While a party from the
monochromic culture will want the negotiation to be done one thing at a time in a chronological
‡‡‡‡‡‡‡‡
Thompson, L., (Supra), see note 17, at 256.
§§§§§§§§
Seng, T., Lim, E., (Supra), see note 1, at 38.
*********
Brett, J. et al, (Supra), see note 20, at 62.
14
order, the other party from a polychromic culture may see this process as slow and want to do a
number of things simultaneously.
CHAPTER FOUR
4.0 HOW TO DEAL WITH CROSS CULTURAL PROBLEMS IN INTERNATIONAL
BUSINESS NEGOTIATION
Negotiating across cultures poses a great challenge to any negotiator. Here are some suggestions
on how to deal with the problems of cross cultural negotiation.
Preparation
The importance of preparation in negotiation cannot be overemphasized. This will include
rehearsals and a study of the cultural background of the other side. This is very critical because it
will show that one has respect for the other side’s culture, thereby building credibility and trust
right from the onset. This will also help in deciding the right tactics to use so as not to irritate or
annoy the members of the other culture. Understanding the nuances and taboos and avoiding
them will smoothen out the negotiation process. It is also necessary to leave a long time frame
for the negotiation. This is because cross cultural negotiation often lasts between two to six times
as long to reach an agreement as it would take domestically.
†††††††††
Avoid Stereotypes
For successful cross cultural negotiation, one must get beyond one’s own cultural stereotypes
and misconceptions.
‡‡‡‡‡‡‡‡‡
Though cultural stereotypes are common, they often have no basis in
reality. Making assumptions will only build distrust and create barriers which negatively affect
the goals of both parties. Rather than generalizing, it is better to make an effort to treat everyone
as individuals. Try to discover the other side’s beliefs and values free from those of the culture
being represented.
†††††††††
Hendon, D., Hendon, R., Herbig, P., Cross Cultural Business Negotiations 232 (Westport, USA: Praegar
Publishers, 1996).
‡‡‡‡‡‡‡‡‡
Garcha, A., Diplomatic Culture or Cultural Diplomacy: The Role for Culture in International Negotiation at
http://www.culturaldiplomacy.org/content/pdf/icd_diplomatic_culture_of_cultural_diplomacy.pdf (last visited,
July 23, 2009).
15
Agent/Interpreter
It may be helpful in some situations to enlist the services of an agent who is more knowledgeable
in the other side’s cultural norms and values. This approach however has advantages and
disadvantages and must be weighed carefully. There may also be the need to hire an interpreter
where there is language barrier. The interpreter helps to facilitate mutual understanding and
comprehension.
§§§§§§§§§
Discover new ways to bridge cultural gaps
In doing this, the parties may use a combination of both cultures or focus on the norms of a
common professional culture. A survey carried out by Salacuse suggests that professional culture
may be as strong as national culture in influencing a person’s negotiation style.
**********
The
impact of this study, if true, will be that when faced with a cultural difference at the table,
negotiators from different cultures but similar professional backgrounds may rely on the norms
of their professional culture in trying to bridge the cultural gap between them.
Finally, when going for a cross cultural negotiation, a good negotiator needs to be relaxed. He
must show openness towards meeting the other party. Ability to apologize if he says or does
something that is out of place, and continuing to show a strong desire to proceed with the
negotiation are positive characteristics for the process. Being warm and communicative with a
desire to initiate conversation will ensure good communication. This will therefore guarantee
success as great communication is crucial for effective cross cultural negotiation.
4.1 CONCLUSION
There is really no ‘best way’ to approach a dispute. How you begin a dispute resolution
negotiation should be a strategic choice based on careful analysis of the parties, their goals and
the situation. In cross cultural negotiation, one should always try to apply the method of
§§§§§§§§§
Varner, I., Beamer, L., (Supra), see note 4, at 56.
**********
Salacuse, J., (Supra), see note 27, at 238.
16
principled negotiation.
††††††††††
This requires separating people from the problem and focusing
on their interests. Where there is an impasse, create options for mutual gain. This will help both
parties achieve their goals easily. Preparation, understanding and success are strongly linked.
Preparation by researching the cultural background of the other party is very important in cross
cultural negotiation. A negotiator who has effectively prepared will understand the negotiation
style of those on the other side of the table, accept and respect their cultural beliefs and norms.
He is conscious of personal mannerisms and how they are viewed by the other party. These
efforts will be greatly appreciated by the counterpart negotiator. It will result in greater respect,
greater success and a long lasting business relationship.
‡‡‡‡‡‡‡‡‡‡
††††††††††
Corne, P., The Complex Art of Negotiation Between Different Cultures, 47 ARB. J. 4, 50 (1992).
‡‡‡‡‡‡‡‡‡‡
Ibid.
17
BIBILIOGRAPHY
PRIMARY SOURCES
None used
SECONDARY SOURCES
Books
Brett, J., Negotiating Globally: How to Negotiate Deals, Resolve Disputes, and make
Decisions Across Cultural Boundaries 9 (2
nd
Edition) (San Francisco, USA: Jossey Bass,
2007).
Cohen, R., Negotiating Across Cultures (2
nd
Edition) (Washington, USA: United States
Institute of Peace Press, 1997).
Fisher, R., Ury, W., Getting to Yes: Negotiating Agreement Without Giving In (2
nd
Edition) (New York, USA: Houghton Miffflin Company, 1991).
Fox, W., International Commercial Agreements: A Functional Primer on Drafting,
Negotiating and Resolving Disputes (3
rd
Edition) (The Hague; Kluwer Law Publishers,
1994).
Ghauri, P., Usunier, J., International Business Negotiations (2
nd
Edition) (Oxford, UK:
Pergamon Press, 2003).
Hendon, D., Hendon, R., Herbig, P., Cross Cultural Business Negotiations (Westport,
USA: Praegar Publishers, 1996).
Raiffa, H., The Art and Science of Negotiation (Cambridge MA: Havard University
Press, 1982).
18
Seng, T. and Lim, E., Strategies for Effective Cross Cultural Negotiation, The
F.R.A.M.E. Approach (Singapore: McGraw Hill Education, 2004).
The ABA Guide to International Business Negotiations; A Comparison of Cross Cultural
Issues and Successful Approaches (2
nd
Edition) (Chicago, USA: ABA Publishing, 2000).
Thompson, L., The Mind and Heart of the Negotiator (3
rd
Edition) (New Jersey, USA:
Pearson Education Inc., 2005).
Varner, I., Beamer, L., Intercultural Communication in the Global Workplace (3
rd
Edition) (New York, USA: McGraw Hill Co Inc, 2000).
Williams, G., Legal Negotiation and Settlement (Minnesota, USA: West Publishing Co,
1983).
Articles
IN A BOOK
Cricillo, R., Fremantle, A., Hamburg, J., International Negotiations: A Cultural
Perspective, The ABA Guide to International Business Negotiations; A Comparison of
Cross Cultural Issues and Successful Approaches (2
nd
Edition) (Chicago, USA: ABA
Publishing, 2000).
Victor, D., Cultural Awareness, The ABA Guide to International Business Negotiations;
A Comparison of Cross Cultural Issues and Successful Approaches (2
nd
Edition)
(Chicago, USA: ABA Publishing, 2000).
19
IN A PERIODICAL
Brett, J., Adair, W., Lempereur, A., Okumara, T., Shikhirev, P., Tinsley, C., Lytle, A.,
Culture and Gains in Negotiation, 14 N. J. 1, 63 (1998).
Brett, J., Culture and Negotiation, 35 I. J.P. 2, 100 (2000).
Corne, P., The Complex Art of Negotiation Between Different Cultures, 47 ARB. J. 4, 50
(1992).
Salacuse, J., Ten Ways that Culture Affects Negotiation Style: Some Survey Results, 14 N.
J. 3, 221 (1998).
OTHER
Internet
Garcha, A., Diplomatic Culture or Cultural Diplomacy: The Role for Culture in
International Negotiation at
http://www.culturaldiplomacy.org/content/pdf/icd_diplomatic_culture_of_cultural_diplo
macy.pdf (last visited, July 23, 2009).
doc_457936980.pdf