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1、McGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.CHAPTER 10International and Cross-Cultural NegotiationMcGraw-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 t
2、hat make international negotiation different.Then we turn 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 internatio
3、nal negotiator.McGraw-Hill/Irwin 2004 The McGraw-Hill 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.C
4、ulturally Responsive Negotiation Strategies.McGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.Environmental contextPolitical and legal pluralismInternational economicsForeign governments and bureaucraciesInstabilityIdeologyCultureExternal stakeholder Immediate context Relativ
5、e bargaining powerLevels of conflict Relationship between 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 outco
6、mesRelative bargaining power of negotiators and nature of dependenceImmediate stakeholdersDesired outcome of negotiationsRelationship between negotiators before and during negotiation Levels of conflict underlying potential negotiationsLegal pluralismPolitical pluralismCurrency fluctuations and fore
7、ign exchangeForeign Govt and bureaucracyInstability and changeIdeological differencesCultural differencesExternal contextFIGURE 16.1 The context of international negotiationsMcGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.Environmental contextPolitical and legal pluralism:T
8、axes that an organization paysLabor codes or standards 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-H
9、ill Companies,Inc.,All Rights Reserved.Environmental contextForeign 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(fo
10、od,reliable transportation potable water);and political 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 circumstanc
11、e should include clauses in their contacts that allow 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 th
12、e importance of making a profit in business.Negotiators from other countries do not share this ideology.McGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.Environmental contextCulturePeople from different cultures appear to negotiate differently,behaving differently,and may al
13、so interpret the fundamental processes of negotiations differentlydeductive or inductiveExternal 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 indus
14、try associations,among others.McGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.Immediate contextRelative bargaining powerSome of factors may influence the relative bargaining power:The amount of venture(financial and other investment);The management control of the project;Th
15、e special access to markets;distribution systems 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
16、are more difficult to resolveMcGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.Immediate contextRelationship 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
17、negotiations between the parties.Desired outcomesSome 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 contextImmediate stakeholdersIt contains the negotiato
18、rs themselves and the people they directly represent,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 model
19、s from Phatak and Habib).One-variable arguments 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 internation
20、al negotiator is to understand the simultaneous,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 nego
21、tiationFour ways to conceptualizing culture in 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 t
22、he effect of culture documents the systematic 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
23、Shared ValueThis approach to conceptualizing culture 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 di
24、mensions in international business and suggested 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
25、Avoidance;McGraw-Hill/Irwin 2004 The McGraw-Hill 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 f
26、or the welfare of each individual.Hofstede suggest 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
27、 negotiation.McGraw-Hill/Irwin 2004 The McGraw-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,cult
28、ures with greater power distance will be more 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 de
29、cision making throughout the organization,and 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 incre
30、asing the competitiveness when negotiators from 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 dimens
31、ion indicates to what extent a culture programs 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.
32、McGraw-Hill/Irwin 2004 The McGraw-Hill Companies,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 McGra
33、w-Hill Companies,Inc.,All Rights Reserved.Shalom 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 bip
34、olar dimensions:Openness to change/conservatism self-transcendence/self-enhancementMcGraw-Hill/Irwin 2004 The McGraw-Hill Companies,Inc.,All Rights Reserved.Self-directionuniversalismBenevolenceconformityTraditionsecurityPowerAchievementHedonismSimulationOpennessTo changeSelf-transcendenceConservati
35、onSelf-enhancementFIGURE 10.2 Schwartzs 10 cultural 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-
36、as-shares-values approach because it can explain 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 d
37、irect effect on negotiations in some circumstances 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.McG
38、raw-Hill/Irwin 2004 The McGraw-Hill Companies,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 s
39、ummarizes 10 different ways that culture can influence 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 RelationshipNegot
40、iation opportunity Selection of negotiations ProtocolCommunication Time sensitivity Risk propensity Groups versus individualsNature of agreementsEmotionalism Distributive ExpertsInformal Direct High High Collectivism Specific High IntegrativeTrust associatesFormal Indirect Low Low Individualism Gene
41、ral Low McGraw-Hill/Irwin 2004 The McGraw-Hill 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
42、 the setting of priorities and strategies,the 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 negoti
43、ation interests and priorities,while cultural 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 Co
44、mpanies,Inc.,All Rights Reserved.FIGURE 10.3 How Culture Affects Negotiation Interests and prioritiesCulture AnegotiatorStrategies Potential for IntegrativeagreementType of agreementPattern of interactionInterestsand prioritiesCulture BnegotiatorStrategies McGraw-Hill/Irwin 2004 The McGraw-Hill Comp
45、anies,Inc.,All Rights Reserved.4.Culturally Responsive 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 ne
46、gotiating with someone from another culture.Weisss 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 fa
47、miliarity Employ Agents or Advisers(Unilateral 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,
48、providing both parties with more information than 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
49、Negotiators Approach(Unilateral Strategy)This 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 m
50、odification to help relations with the other person.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 mod