1、McGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.McGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.IntroductionWe discuss this chapter by the following manner:First we discuss some of the factors that make international negotiation different.Then we t
2、urn to a discussion of the most frequent studied aspect of international negotiation.Next we examine the influence of culture on negotiations.We conclude this chapter with a discussion of cultural responsive strategies available to the international negotiator.McGraw-Hill/Irwin 2004 The McGraw-Hill
3、Companies,Inc.,All Rights Reserved.The titles 1.What Makes International Negotiation Different?2.Conceptualizing Culture and Negotiation.3.The Influence of Culture on Negotiation.(both the managerial perspectives and the research perspectives)4.Culturally Responsive Negotiation Strategies.McGraw-Hil
4、l/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.Environmental contextPolitical and legal pluralismInternational economicsForeign governments and bureaucraciesInstabilityIdeologyCultureExternal stakeholder Immediate context Relative bargaining power Levels of conflict Relationship bet
5、ween negotiators Desired outcomes Immediate stakeholders 1、What makes international negotiation different?McGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.Environmental contextImmediate contextNegotiation process and outcomesRelative bargaining power of negotiators and natur
6、e of dependenceImmediate stakeholdersDesired outcome of negotiationsRelationship between negotiators before and during negotiation Levels of conflict underlying potential negotiationsLegal pluralismPolitical pluralismCurrency fluctuations and foreign exchangeForeign Govt and bureaucracyInstability a
7、nd changeIdeological differencesCultural differencesExternal contextFIGURE 16.1 The context of international negotiationsMcGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.Environmental context Political and legal pluralism：Taxes that an organization paysLabor codes or standar
8、ds Different codes of contract law and standards of enforcement Political consideration.International economicsThe exchange value of international currencies naturally fluctuatesAny change in the value of currencyMcGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.Environmental
9、 context Foreign governmentsThe extent to the government regulates industries and organizations InstabilityLack of resource that American commonly expect during business negotiation(paper,electricity,computers);shortage of other goods and service(food,reliable transportation potable water);and polit
10、ical instability(coups,sudden shifts in government policy,major currency revaluations)McGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.Environmental context Salacuse(1988)suggests that negotiators facing unstable circumstance should include clauses in their contacts that all
11、ow easy cancellation or neutral arbitration,and consider purchasing insurance policies to guarantee contract provisions.IdeologyIndividualism and capitalism Americans believe strongly in individual rights,the superiority of private investment,and the importance of making a profit in business.Negotia
12、tors from other countries do not share this ideology.McGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.Environmental context CulturePeople from different cultures appear to negotiate differently,behaving differently,and may also interpret the fundamental processes of negotiat
13、ions differentlydeductive or inductive External stakeholders The various people and organizations that have an interest or stake in the outcome of the negotiation（by Phatak and Habib,1996）.Include business associations,labor unions,embassies,and industry associations,among others.McGraw-Hill/Irwin 2
14、004 The McGraw-Hill Companies,Inc.,All Rights Reserved.Immediate context Relative bargaining powerSome of factors may influence the relative bargaining power:The amount of venture(financial and other investment);The management control of the project;The special access to markets;distribution systems
15、 or managing government relations Levels of conflictThe level of conflict and type of interdependence between the parties to a cross-cultural negotiation will influence the negotiation process and outcome.Those based on ethnicity,identity or geography are more difficult to resolveMcGraw-Hill/Irwin 2
16、004 The McGraw-Hill Companies,Inc.,All Rights Reserved.Immediate context Relationship between negotiators The history of relations between the parties will influence the current negotiation,just as the current negotiation will become part of any future negotiations between the parties.Desired outcom
17、esSome tangible and intangible factors play a large role in determining the outcomes of international negotiations.McGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.Immediate context Immediate stakeholdersIt contains the negotiators themselves and the people they directly rep
18、resent,such as their managers,employers and boards of directors.(Phatak and Habib,1996)McGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.How do we explain international negotiation outcomes?As we discussed in figure16.1,(the models from Phatak and Habib).One-variable argument
19、s cannot explain conflicting international negotiation outcomes.(Mayer1992)The negotiation processes and outcomes are influenced by many factors,and that the influence of these factors can change in magnitude over time.The challenge for every international negotiator is to understand the simultaneou
20、s,multiple influences of several factors on the negotiation process and outcome and to update this understanding regularly as circumstance change.McGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.2.Conceptualizing culture and negotiationFour ways to conceptualizing culture in
21、 international negotiation:-Culture as Learned Behavior-Culture as Shared Value-Culture as Dialectic-Culture in ContextMcGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved._ Culture as Learned BehaviorThis approach to understanding the effect of culture documents the systematic
22、negotiation behavior of people in different cultures.It concentrates on creating a catalog of behavior at foreign negotiators should expect when entering a host cultureMcGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved._Culture as Shared ValueThis approach to conceptualizing c
23、ulture concentrates on understanding central values and norm and then building a model for how these norms and values influence negotiation within that culture.Geert Hofstede(1980a,1980b,1989,1991)conducted an extensive program of research on cultural dimensions in international business and suggest
24、ed that four dimensions could be used to describe the important differences McGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.among the cultures:Individualism/Collectivism;Power Distance;Career Success/Quality of Life;Uncertainty Avoidance;McGraw-Hill/Irwin 2004 The McGraw-Hi
25、ll Companies,Inc.,All Rights Reserved.Individualism/Collectivism;Individualistic societies encourage their young to be independent and to look after themselves.Collectivistic societies integrate individuals into cohesive groups that take responsibility for the welfare of each individual.Hofstede sug
26、gest that focus on relationships in collectivist societies plays a critical role in negotiations,contrast this with individualistic societies,in which negotiators are considered interchangeable,and competency is an important consideration when choosing a negotiation.McGraw-Hill/Irwin 2004 The McGraw
27、-Hill Companies,Inc.,All Rights Reserved.Power DistanceThe power distance dimension describes“the extent to which the less powerful members of organization and institutions accept and expect that power is distributed unequally.”According to Hofstede,cultures with greater power distance will be more
28、likely to concentrate decision making at top,and all important decisions will have to be finalized by the leader.McGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.Cultures with lower power distance are more likely to spread the decision making throughout the organization,and
29、while leaders are respected,it is also possible to question their decisions.McGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.Career Success/Quality of LifeAccording to Hosstede(1989),this dimension influences negotiation by increasing the competitiveness when negotiators fro
30、m career success cultures meet;negotiators from quality of life cultures are more likely t have empathy for the other party and to seek compromise.McGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.Uncertainty Avoidance This dimension indicates to what extent a culture program
31、s its members to feel either uncomfortable or comfortable in unstructured situations.Negotiators from high uncertainty avoidance cultures are less comfortable with ambiguous and are more likely to seek stable rules and procedures when they are negotiate.McGraw-Hill/Irwin 2004 The McGraw-Hill Compani
32、es,Inc.,All Rights Reserved.Negotiators from low uncertainty avoidance cultures are likely to adapt to quickly changing situations and will be less uncomfortable when the rules of the negotiation are ambiguous or shifting.McGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.Shal
33、om schwarzs 10 cultural values He concentrates on identifying motivational goal underlying cultural values and found 10 values.These 10 values may conflict or be compatible with each other.He also proposed that the 10 values may be represented in two bipolar dimensions:Openness to change/conservatis
34、m self-transcendence/self-enhancementMcGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.Self-directionuniversalismBenevolenceconformityTraditionsecurityPowerAchievementHedonismSimulationOpennessTo changeSelf-transcendenceConservationSelf-enhancementFIGURE 10.2 Schwartzs 10 cul
35、tural ValuesMcGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved._ Culture as Dialectic Janosik(1987)recognizes that all cultures contain dimensions or tensions that are called dialectics.This approach has advantage over the culture-as-shares-values approach because it can expla
36、in variations within cultures.McGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.-Culture in ContextTinsley,Brett,Shapiro,and Okumura(2004)proposed cultural complexity theory in which they suggest that cultural values will have a direct effect on negotiations in some circumsta
37、nces and a moderated effect in others.Values are proposed to have a direct when they have strong effects across several different contexts,whereas values that have a moderated effect are those that have different contextual instigators in the culture.McGraw-Hill/Irwin 2004 The McGraw-Hill Companies,
38、Inc.,All Rights Reserved.3.The Influence of Culture on Negotiation.(both the managerial and the research perspectives)FIRST:The managerial PerspectiveCultural differences have been suggested to influence negotiation in several different ways.Table 10.2 summarizes 10 different ways that culture can i
39、nfluence negotiations.McGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.TABLE 10.2 Ten Ways That Culture Can Influence NegotiationNegotiation Factors Range of Cultural Responses Definition of negotiation Contract RelationshipNegotiation opportunity Selection of negotiations P
40、rotocolCommunication Time sensitivity Risk propensity Groups versus individualsNature of agreementsEmotionalism Distributive ExpertsInformal Direct High High Collectivism Specific High IntegrativeTrust associatesFormal Indirect Low Low Individualism General Low McGraw-Hill/Irwin 2004 The McGraw-Hill
41、 Companies,Inc.,All Rights Reserved.SECOND:Research perspective A conceptual model of where culture may influence negotiation has been developed by Jeanne Brett(2001).(see Figure 10.3)His model identifies how the culture of both negotiators can influence the setting of priorities and strategies,the
42、identification of the potential for integrative agreement,and the pattern of interaction between negotiation.McGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.Brett suggests that cultural values should have strong effect on negotiation interests and priorities,while cultural
43、norms will influence negotiation strategies and the pattern of interaction between negotiators will also be influenced by the psychological processes of negotiators,and culture has an influence on these processes.McGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.FIGURE 10.3 H
44、ow Culture Affects Negotiation Interests and prioritiesCulture AnegotiatorStrategies Potential for IntegrativeagreementType of agreementPattern of interactionInterestsand prioritiesCulture BnegotiatorStrategies McGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.4.Culturally Re
45、sponsive Negotiation Strategies Negotiators should be aware of the effects of cultural differences on negotiation and to take them into account when they negotiate.Stephen Weiss(1994)has proposed a useful way of thinking about the options we have when negotiating with someone from another culture.We
46、isss culturally responsive strategies may be arranges into three groups,based on the level of familiarity(low,moderate,high)that negotiator has with the other partys culture.McGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.Low familiarity Employ Agents or Advisers(Unilateral
47、 Strategy)This relationship may range from having the other party conduct the negotiations under supervision(agent)to receiving regular or occasional advice during the negotiation Bring in a Mediator(Joint Strategy)Interpreters will often play this role,providing both parties with more information t
48、han the mere translation of words.Mediators may encourage one side or the other to adopt one cultures approaches or a third culture approach.McGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.Moderate FamiliarityAdapt to the Other Negotiators Approach(Unilateral Strategy)This
49、strategy involves negotiators making conscious changes to their approach so that it is more appealing to the other party.Rather than trying to act like the other party,negotiators using this strategy maintain a firm grasp on their own approach but make modification to help relations with the other p
50、erson.McGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.Coordinate Adjustment(Joint Strategy)This strategy involves both parties making mutual adjustments to find a common process for negotiation.Using this strategy requires a moderate amount of knowledge about the other part
