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ISSUES IN

CROSSCULTURAL
NEGOTIATIO
N
DENNY
C AT H Y
SUNNY

ZAELANI (26543468)

OUTLINE  The Basics  What’s so different about China and India?  Cultural Values on Cross-Cultural Business Negotiation Process  How to take the most out of it?  How can we learn?  References .

. norms. rules. culture is the socially transmitted behaviour patterns. values. symbols and traditions that are common to a group of people. norms. • Pattern • Salacuse (1999) adds. beliefs and values of a given community. 1980). • Northouse (2007) defines culture as learned beliefs.THE BASICS  What is Culture? • Specificity • “the collective programming of the mind which distinguishes the members of one human group from another” (Hofstede.

is a part of the human activity connected with problem solving which is oriented towards peaceful means of dispute resolution (Hofstede & Hofstede. in turn.” (Zhang.THE BASICS  Culture and Negotiation • Cultural influence in negotiation styles “Culture is always an important factor to influence the business negotiation. 2011) • Negotiation is a part of culture Negotiation. 2005). there exist many different business negotiation styles. Due to the different lifestyle. different thinking mode and action pattern in different cultures. .

• Salacause (2004): negotiation practices differ from culture to culture. tangible and intangible losses). (Salacuse. ENRON negotiation case in India. especially in the rules that they use to negotiate. • Can be detrimental (leads to deadlocks.THE BASICS  Can Culture influence a negotiation? • Cultural differences may potentially hamper the success of a crosscultural negotiation. • Schneider et al. 2005) . • Brett (2001): culture is a key factor affecting negotiation processes and outcomes. • E.g. (2003): a big trap in negotiation is often due to misunderstanding the culture of other countries.

com/watch?v=ZtbyVFLl_7U Hofstede’s Cultural Dimensions Hall’s Context & Time Trompenaars’ 7 Cultural Dimensions .youtube.WHAT’S SO DIFFERENT ABOUT CHINA AND INDIA?  Consider this! https://www.

WHAT’S SO DIFFERENT ABOUT CHINA AND INDIA?  Hofstede’s (1983) Cultural Dimensions. .

Dimensions India China .WHAT’S SO DIFFERENT ABOUT CHINA AND INDIA?  Hofstede’s (1983) Cultural Dimensions.

China .WHAT’S SO DIFFERENT ABOUT CHINA AND INDIA?  Hall’s Context and Time. Dimensions India High Context Low Context Monochronic Polychronic X Traditionally it’s a High Context.

relationships . X Consensus.WHAT’S SO DIFFERENT ABOUT CHINA AND INDIA?  Trompenaars’ 7 Dimension of Culture. Dimensions India China X Traditionally it’s a High Context.

Lewicki et al. 2005. 1996. Hendon et al. 2001.CULTURAL VALUES ON CROSS-CULTURAL BUSINESS NEGOTIATION PROCESS Goal Protoc ol Nature of Agreemen ts Cultur al Values Decision making Risk propensity Communicati on Time (Brett. 1994) .. Salacuse.. Weiss. 1999.

High sensitivity: punctuality Meeting time. Time Low sensitivity: Less punctual. Risk propensity Risk taker.CULTURAL VALUES ON CROSS-CULTURAL BUSINESS NEGOTIATION PROCESS Negotiation Process Goal India China Issues Contract Relationship Communication Direct: talkative. Protocol Decision making Nature of agreements . Indirect: emphasis on silence and nonverbal communication. Unnecessary confusion and missunderstanding. Risk averse. emotional.

Zhang. She feels excited as she thinks that arriving early will allow her to make conversation with her counterpart with a hope of getting him better before. Cyrax Biotech will build joint venture with Guanxi Bio. However. 15 minutes past the meeting time. China. Sunil is planned to meet with Guanxi representatives at 10 am.CULTURAL VALUES ON CROSS-CULTURAL BUSINESS NEGOTIATION PROCESS  Sunil is the CEO of Cyrax Biotech. a well-reputable generic pharmaceutical company in China. the CEO of Guanxi.  Today is the first day those two corporations will negotiate their future plans. which attempts to expand their factory in Chengdu . Sunil is arriving late. a Bombay-base bioengineering company. Knowing her . In doing so. has been in the conference room 10 minutes prior the meeting time.

CULTURAL VALUES ON CROSS-CULTURAL BUSINESS NEGOTIATION PROCESS  Hypothetical Case 2 .

CULTURAL VALUES ON CROSS-CULTURAL BUSINESS NEGOTIATION PROCESS  Hypothetical Case 3 .

WHAT CAN WE LEARN? .

HOW COULD WE TAKE THE MOST OUT OF IT? .

& Hofstede.. CT: Quorum.). Group Decision And Negotiation. S. and mending deals around the world.REFERENCES Northhouse. 35(2).J.1023/a:1008660330550 Brett. 69(4). Managing across cultures (2nd ed. B.. Journal of Asian Business Strategy.L. G.). (2002). Negotiation (4th ed.G. Negotiating globally: How to negotiate deals. Cultures and organizations. S.1467-8616.doi. E. (2001). 7(3). & Herbig. R.org/10. Weiss.A. Culture’s Consequences. (2004). Saunders. Hofstede. Schneider. http://dx. J. http:// dx. Hofstede.. (2013). NY: McGrawHill. J.Business Strategy Review. 217-236. New York: Palgrave Macmillian. J. A Study of Sino-Indian Business Negotiations-from a Cross-cultural Perspective. New York. . Boston. Salacuse.org/10.tb00132. (2007).W. Mass: McGraw-Hill Irwin.1996. M . 278-291..M. & Barsoux. (1996). Trompenaars. Negotiation: The top ten ways that culture can affect your negotiation. D. P. Ivey Business Journals. P. (1980). (2005). J.. (2003). & Barry. Harlow: PrenticeHall. Zhang.J. Cross-cultural business negotiations. F.1111/j. Resolving International Conflict: Culture and Business Strategy.). J.doi.C. D. G. (2005). Westpost.. resolve disputes and make decisions across cultural boundaries. (1999). San Francisco: Jossey Bass.W. (1996). California: SAGE Publications ltd. Salacuse. Hendon. Salacuse. 51-61. 1-6. Negotiating with" Romans"-part 1. magaging.). J. (1994). London: Sage Publications.. 8(3).x Hendon. The global Negotiator: Making. Minton. Sloan Management Review. G.W. Lewicki. R. 3(10). 51-68. Y. Leadership: Theories and practice (4 ed. software of the Mind: Intercultural cooperation and its importance for survival (2nd ed.

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