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Chapter7InterculturalBusinessNegotiationLearningObjectiveBytheendofthischapter,youshouldbeabletoDefinetheinterculturalnegotiationprocessDiscusswaysinwhichculturaldifferencescanimpactinternationalnegotiationDistinguishbetweennegotiationmodelsandstylesNegotiationTheword“negotiation”stemsfromtheRomanwordnegotiarimeaning“tocarryonbusiness”andisderivedfromtheLatinwordsneg(not)andotium(easeorleisure)NegotiationDefinedTwoormorepartieswithcommon(andconflicting)interestsenterintoaprocessofinteractionwiththegoalofreachinganagreement(preferablyofmutualbenefit)InterculturalNegotiationDefinedInterculturalnegotiationinvolvesdiscussionsofcommonandconflictinginterestsbetweenpersonsofdifferentculturalbackgroundswhoworktoreachanagreementofmutualbenefit.WhatisInterculturalNegotiationLike?TheyfurtherexplainthatnegotiationstakeplacewithinthecontextofthefourCs:commoninterest,conflictinginterests,compromise,andcriteria.1.Commoninterestconsidersthatbothpartiesinthenegotiationshare,have,orwantsomethingthattheotherpartyhasordoes.2.Areasofconflictinginterestsincludepayment,distribution,profits,contractualresponsibilities,andquality.3.Compromiseincludesareasofdisagreement.4.Thecriteriaincludeconditionsunderwhichthenegotiationstakeplace.InterculturalNegotiationVariablesAknowledgeoftheotherside’scultureallowsanegotiatortocommunicate,tounderstand,toplan,andtoanticipatemoreeffectively.1.FactorsInfluencingBusinessNegotiationTheprocessofinternationalbusinessnegotiationisconsideredtobeinfluencedbytwogroupsofvariables.

(1)BackgroundfactorsTheparties’objectives;Otheraspectsincludethirdpartiesinvolved,suchasconsultants,agents,andtherespectivegovernment;Thepositionofthemarket(seller’svs.buyer’s)

Theskillsandexperienceofthenegotiators.1.FactorsInfluencingBusinessNegotiation

(2)Atmospherevariables

Perceivedcooperation/conflict–thatthepartieshavesomethingtonegotiateforandsomethingtonegotiateabout;Poweranddependence-thatoneofthepartiesgainsmorepowerintherelationship;Perceiveddistance-thatthepartiesareunabletounderstandeachother;Theexpectationsofbothsides:

Long-termexpectationsofthetruedealsorbenefits;Short-termexpectationsconcerningtheprospectsofthepresentdeal.2.AnalysisofInterculturalNegotiationVariablesLet’sspecifyhowcultureaffectsinterculturalnegotiationinthetwelvevariablesraisedbyWeiss(1998)andseethedifferencesamongthesevencultures-American,Chinese,French,Japanese,Mexicans,NigeriansandSaudis.AnalysisofInterculturalNegotiationVariablesBasicconceptofthenegotiationprocess基本概念CulturalFactorsAttitudetowardconflictPrevailingresponsePredominantviewofbusinessrelationshipsPurposeofnegotiationFunctionalvs.dysfunctional;zero-sumvs.nonzero-sumDirectvs.indirect;confrontationalvs.avoidantCompetitivevs.collaborativeMaximizationofindividualvs.jointbenefitDistributivebargaining分配式談判FunctionalDirect,confrontationalCompetitiveDistributivebargainingistheapproachtobargainingornegotiationthatisusedwhenthepartiesaretryingtodividesomethingup--distributesomething.

Itcontrastswithintegrativebargaininginwhichthepartiesaretryingtomakemoreofsomething.

Thisismostcommonlyexplainedintermsofapie.

Disputantscanworktogethertomakethepiebigger,sothereisenoughforbothofthemtohaveasmuchastheywant,ortheycanfocusoncuttingthepieup,tryingtogetasmuchastheycanforthemselves.

Ingeneral,integrativebargainingtendstobemorecooperative,anddistributivebargainingmorecompetitive.Commontacticsincludetryingtogainanadvantagebyinsistingonnegotiatingonone'sownhomeground;havingmorenegotiatorsthantheotherside,usingtricksanddeceptiontotrytogettheothersidetoconcedemorethanyouconcede;makingthreatsorissuingultimatums;generallytryingtoforcetheothersidetogiveinbyoverpoweringthemoroutsmartingthem,notbydiscussingtheproblemasanequal(asisdoneinintegrativebargaining).

Thegoalindistributivebargainingisnottoassurebothsideswin,butratherthatoneside(yourside)winsasmuchasitcan,whichgenerallymeansthattheothersidewilllose,oratleastgetlessthanithadwanted.(Distributivebargainingtacticsrarelyassumethepiewillbedividedinhalf.)DistributivebargainingmixedwithintegrativeaspectsDysfunctional,zero-sumIndirect,avoidantCompetitiveDebateFunctional,zero-sumDirect,confrontationalCompetitiveContingencybargainingDysfunctional,nonzero-sumIndirect,avoidantCollaborative2.SignificantIssuesSignificantIssuesSubstance

Relationship-basedProceduralPersonal/internalItcoverssuchmattersaspriceandnumberofunitstobesold.Itcoverscompatibilityofstylesandmutualtrust.Itcoversthetypeofstructure(format)ofdiscussion.Itcoversrespect,reputation,anddissentwithinone’sownnegotiationteam.Itcoverssuchmattersaspriceandnumberofunitstobesold.Itcoverscompatibilityofstylesandmutualtrust.Itcoversthetypeofstructure(format)ofdiscussion.Itcoversrespect,reputation,anddissentwithinone’sownnegotiationteam.StressingsubstantiveissuesPriceDeliveryQualityThenatureoftheparties’relationshipistheprimaryissueThe“heartofthematter”Relationship-based,procedural,andpersonalissuesConcentratingonrelationship-basedissues3.SelectionofNegotiatorsTheabilitycriterionNegotiator’ssubstantiveknowledgeoftheissuesNegotiator’sexperienceLargeteamsofvariedcompositionStatusAbilityStatus(sex,age,seniority)Knowledge4.Individuals’AspirationsEncouragingindividualaspirationsApplaudindividualachievementsIndividualaspirationsplayaminorbutchangingroleIndividualismisvaluedhighlyCollectivismisthequintessentialtrait5.Decision-makinginGroupDecisionstendtobemadebyindividualsDecisionstendtobemadeauthorativelyDecision-makingishighlycentralizedConsensus-buildingisthenorm6.OrientationtowardtimeTimemustbemaximizedNottobewastedPatienceisthewatchword.Punctualityisexpected.TheJapanesehavealongtimehorizon,buttheycanbepunctualinsomeareasandunconcernedinothers.7.Risk-takingpropensityTendtotakerisksAcceptuncertaintyRiskisavoided.ConservativeAversetouncertaintyandrisk8.BasesofTrustLooktothepastrecordofthosewithwhomtheyarenegotiatingTrustinsanctionsTrustworthinessisassessedonthebasisofpastrecord.Trustemergesslowly,usuallyasaresultofone’sdeeds.Trustrestsonpastrecordandotherwiseonintuition.9.ConcernwithProtocolAmericaninformalChineseformalitiesFrenchProperdemeanorandformalityJapaneseConservativeconductandformalpoliteness10.CommunicationComplexityAmericanVerbalLowcomplexityChineseHeavyuseofverbalcuesMorecomplexFrenchNeitherlownorhighJapaneseHighcomplexity11.NatureofPersuasionEmpiricalinformationRationalargumentsExperienceDogmaCarefullydevelopedandhighlyadmiredskillfulrhetoricSensitivityIntuition12.FormofAgreementDetailedwrittenagreementsareexpectedandaretobelegallybinding.Togetherwithaconcernforthe

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