Chapter 11

GROUP TWO

CHAPTER 11: INTERNATIONAL AND CROSS-CULTURAL NEGOTIATION

Introduction:
• The frequency of International Negotiation has increased rapidly over the last 20 years
• People travel more often and scope of business is more global
• International negotiation has become a norm for many people and organizations

Factors that distinguish International Negotiations
1. Environmental Factors
2. Immediate Factors

ENVIRONMENTAL FACTORS/CONTEXT

i. Political and Legal Pluralism: The existence different political/legal systems could bring about difference modus operandi

ii. International Economics: Economic factors, particularly differences in the value of currency will impact negotiation outcomes

iii. Foreign Governments and Bureaucracies: extent to which there is government interventions and/regulations vary among countries and will affect negotiation outcomes

iv. Instability: Volatilities in the state and quality of resources/production influence negotiations

v. Ideology: business sense a negotiator has plays a critical role

vi. Culture: Differences in norms and values across territories impact on negotiations

vii. External Stakeholders: The number of interested external parties (shareholders, labour unions, associations) has will influence their negotiation outcomes.

IMMEDIATE CONTEXT

This refers to the more peculiar factors that directly affects the outcomes of negotiations. They include;

i. Relative bargaining power: The unique skills of the negotiating party

ii. Levels of conflict: Level of interdependence and differences in identity

iii. Relationship between Negotiations: The kind of relationship parties have developed over time (if any) has a strong influence on negotiation outcomes

iv. Desired outcomes: The goals and objectives of each party influences his/her expectation and thus the outcome of the process

v. Immediate stakeholder: The skills, abilities, power, ambition and position of the representative plays a key role


CONCEPTUALIZING CULTURE AND NEGOTIATION
Culture cannot be disconnected from negotiation. They go hand in hand

The concept or meaning of culture
• Culture is a group level phenomenon: it is based on shared values, beliefs and behavioural expectations
• Culture is dialectic because these beliefs are learned and passed on to new members of the group

CULTURE AS SHARED VALUES:
We will consider this from two views as opined by Hofstede and Schwartz.

On the one hand, Hofstede opined that there are four dimensions that could be used to describe important differences among cultures

i. Individualism/collectivism: extent to which the society is organized around individuals or groups

ii. Power distance: the extent to which less powerful members of organizations and institutions accept and expect that power is unequally distributed

iii. Career success/quality of life: Extent to which members held values that improved their career and quality of life

iv. Uncertainty avoidance: The extent to which a culture programs/makes members feel either comfortable or uncomfortable in unstructured situations

On the other hand, Schwartz highlighted ten fundamental values in identifying the motivational goal underlying cultural values. They are;

i. Power
ii. Security
iii. Tradition
iv. Conformity
v. Benevolence
vi. Universalism
vii. Self direction
viii. Simulation
ix. Hedonism
x. Achievement

CULTURE AS DIALETIC

This infers that culture brings about tensions in the learning process

Ways by which culture influence negotiation
i. Definition of negotiation
ii. Negotiation opportunity
iii. Selection of negotiators
iv. Protocol
v. Communication
vi. Time sensitivity
vii. Risk propensity
viii. Group versus individuals
ix. Nature of agreements
x. Emotionalism

Culturally responsive negotiation strategies
On the one hand, Rubin & Sander suggested that negotiators should focus on three factors namely;

1. Own bias
2. Strengths
3. Weaknesses

On the other hand, Weiss held that culturally responsive strategies may be organized in three groups or based on three conditions:

1. Low familiarity
2. Moderate familiarity
3. High familiarity

WHERE THERE IS LOW FAMILIARITY, negotiators may;
i. Employ agents of advisers (unilateral strategy)
ii. Bring in a moderator (joint strategy)
iii. Induce the other negotiator to use his/her negotiation approach

WHERE THERE IS MODERATE FAMILIARITY, negotiators may;
i. Adapt the other negotiator’s approach
ii. Coordinate adjustments

WHERE THERE IS HIGH FAMILIARITY, negotiators may;
i. Embrace the other negotiator’s approach
ii. Improvise or select an approach based on prevailing circumstances
iii. Create an approach that allows him/her to include aspects of his/her home culture