Differences in Business Negotiations between Different Cultures

Negotiations can be discussed from a broad or a narrow sense: negotiations in a broad sense include all forms of consultation, communication, discussion, exchanging of views, reaching a consensus, and formal negotiations. Those in a narrow sense include the activities that are carried out in places that are publicly or formally prepared for negotiations. The academic circle of negotiations has mixed views toward the relationship between cultures and the behavior of negotiation. Some believe that negotiations have become a common behavior, and regardless of the cultural backgrounds of negotiators, the behavior of negotiation is carried out within a predetermined framework. However, others believe that negotiations in different countries are different from each other; they take different forms, and are fundamentally different. To varied extents, different cultural backgrounds lead to different types of negotiations. This correlation is not absolute, however, and stereotyping should be avoided (Liu, 1996). In order to understand the influence of culture on negotiations and decision making, we can use cross-cultural studies and different nations’ cultural strengths and weaknesses to anticipate an opposing nation’s possible behaviors in the negotiation process, and to understand the cultural factors that may influence their decision making. It is commonly believed that cross-cultural studies are focused on certain phenomena and discuss the similarities and dissimilarities between different countries. Although this kind of research may be limited in terms of the chosen countries or certain behaviors, it still has great value in terms of helping us understand negotiations since it discusses the different values, attitudes, and decision making patterns of people in different countries. A macro study on cultural characteristics that involve national characteristics and Chinese values can be used to clearly explain the characteristics of a nation’s citizens. Based on this kind of study, a researcher can develop the hypothesis of how negotiations are influenced and make inferences. Therefore, the findings of this kind of research can be used as the foundation based on which a cross-cultural theory of international negotiations can be developed (326-327).