The Impact of Cultural Differences on International Business
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2021年01月20日 05:34
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The Impact of Cultural Differences on International
Business Negotiation
1.
Introduction
International
business
negotiations
are
far
more
complex
than
domestic
ones.
The difficulties are due to the big differences between the two parties in a negotiation
in language, value, behavior patterns, moral standards and so on. All those factors are
playing
crucial
roles
in
negotiations.
The
key
to
effective
cross-cultural
communication is knowledge. So we must learn and know as
much knowledge as we
can. Knowing these cultural differences
can help us solve the problems and reduce the
misunderstandings
in
International
business
negotiations.
Due
to
these
cultural
differences, negotiators who come from different part of the world can form different
negotiation
styles.
The
relation
between
culture
and
negotiation
styles
has
been
the
topic of much investigation and research in recent times. Being familiar with different
cultural differences can help us get a close view of different negotiation styles, and all
these
previous
efforts
can
make
the
International
business
negotiation
smooth.
The
thesis will elaborate on the cultural factors and their influences on negotiation styles
in different countries.
2. Cultural Influences and Types
2.1 Cultural Influences
When two groups from the same country are doing business, it is often possible
to
expedite
the
whole
negotiation
procedure.
Because
they
have
the
same
cultural
background, the mutual communications are easy to understand. This does not mean
they
have
no
obstacle
during
the
whole
negotiation
procedure,
but
compare
with
people
who
do
business
from
different
cultures,
they
do
not
have
the
impact
of
cultural differences, so the contradictions seem to be
easy solved.
If
two
different
cultures
are
involved,
one
party
without
a
real
knowledge
of
another culture, it may lead to misunderstandings. The international negotiators must
be careful when handle these cultural differences and do not use the same way like
negotiate with local businesspersons.
A
great
number
of
real
cases
show
that
due
to
misunderstandings,
many
businesses were lost. For example, an American businessman once presented a clock
to
the
daughter
of
his
Chinese
counterpart
on
the
occasion
of
her
marriage,
not
knowing that clocks are inappropriate gifts in China because they are associated with
death. His insult led to the termination of the business relationship. It is also bad form
to give the gifts of great value to the Japanese than those received.
As an international business negotiator, he or she must try his best to learn and
know the culture differences in order to avoid some mistakes and through the cultural
exchange to establish a good cooperation relationship with his partners.
2.2 Cultural Types
Beliefs
and
behaviors
are
different
from
different
cultures,
because
each
develops its own means of explaining and coping with life. Four cultural dimensions
can help to explain the differences between cultures. Though the distinctions between
them
seem
clear,
the
dimension
should
be
regarded
as
a
general
guide.
The
four
dimensions are gender, uncertainty avoidance, power distance and individualism.
Gender
cultures
can
be
divided
into
masculine
and
feminine
types.
Masculine
cultures
typically
value
assertiveness,
independence,
task
orientation
and
self-achievement. Masculine societies tend to have a rigid division of sex roles. The
competitiveness
and
assertiveness
embedded
in
masculine
societies
may
result
in
individuals
perceiving
the
negotiation
situation
in
win-or- lose
terms.
In
masculine
cultures, the party with the most competitive behavior is likely to gain more.
Feminine cultures value modesty, cooperation, nurturing and solidarity with the
less fortunate. Femininity is related to empathy and social relations.
Uncertainty avoidance
This term refers to how uncomfortable a person feel
in risky or ambiguous situations. In high uncertainty avoidance cultures, people
tend to avoid tense situations. These cultures tend to observe formal bureaucratic
rules, rely on rituals and standards, and trust only family and friends.
In
low
uncertainty
avoidance
cultures,
people
are
generally
more
comfortable
with ambiguous situations and are more accepting of risk. Low risk avoiders require
much less information, have fewer people involved in the decision-making, and can
act
quickly.
Such
cultures
dislike
hierarchy
and
typically
find
it
inefficient
and
destructive. Deviance and new ideas are more highly tolerated. Cultures characterized
by
low
uncertainty
avoidance
are
likely
to
pursue
problem-solving
solutions
rather
than maintain the status quo.
Power distance
Power distance refers to the acceptance of authority differences
between people
—
the disparity between those who hold power and those affected by
power. High power-distance cultures are status conscious and respectful of age and
seniority. In high power-distance cultures, outward forms of status such as protocol,
formality, and hierarchy are considered important. Decisions regarding rewards and
redress
of
grievances
are
usually
based
on
personal
judgments
made
by
power
holders.
When
someone
from
a
high-masculinity
culture
attempts
to
work
with
someone
from
a
high
power-distance
culture
without
either
party
recognizing
the
variations in their respective behaviors, clashes are likely to disrupt negotiations. In
low power-distance cultures, people strive for power equalization and justice. A low
power-distance
cultural
values
competence
over
seniority
with
a
resulting
consultative
management
style.
Low
masculinity
and
low
power
distance
may
be
related to the sharing of information and the offering of multiple proposals as well as
more cooperative and creative behavior.
Individualism
In
individualism
cultures,
people
tend
to
put
tasks
before
relationships and to value independence highly. People in these cultures are expected
to take care of themselves and to value the needs of the individual over those of the
group,
community,
or
society.
Individualistic
cultures
prefer
liner
logic
and
tend
to
value
open
conflict.
Members
from
individualistic
societies
expect
the
other
side’s
negotiation to have the ability to make decision unilaterally.
By
contrast,
cultures
that
value
collectivism
emphasize
solidarity,
loyalty,
and
strong
interdependence
among
individuals.
Relationships
are
based
on
mutual
self-interest
and
are
dependent
on
the
success
of
the
group.
Collectivist
cultures
define
themselves
in
terms
of
their
membership
within
groups.
Maintaining
the
integrity of groups is stressed so that cooperation, conflict avoidance, and conformity
dominate the culture. Collectivist societies tend to stress abstract, general agreements
over concrete, specific issues.
Collectivist
negotiators
tend
to
assume
that
details
can
be
worked
out
if
the
negotiators can agree on generalities. Collectivist societies show more concern for the
needs of the other party and focus more on group goals than individualistic societies
do.
Members
of
collectivist
societies
chafe
when
members
from
individualistic
societies promote their own positions and ideas during negotiations.
3. The Relevant Cultural Factors
In terms of international business negotiation, the following elements of culture
are
generally
believed
to
have
an
important
impact
on
international
business
negotiation.
Knowing
much
relevant
knowledge
of
different
cultures
can
make
the
international business negotiation smooth.
3.1 Language and Communication
The ways in which people communicate, including using verbal and non-verbal
language, directly affects
international business negotiation. When we communicate
with
people
from
other
cultures,
our
body
language
sometimes
helps
make
the
communication
easier
and
more
effective,
such
as
by
shaking
hands
when
greeting
others. This has become such a universal gesture that people all over the world know
that it is a signal for greeting.
Sometimes, body language can be more of a hindrance than a favor. It can
lead
to
misunderstanding
since
people
of
different
cultures
often
have
different
forms
of
behavior
for
sending
the
same
message.
For
example,
nodding
one’s
head is generally meant to show agreement, to indic
ate ‘yes’. To the Nepalese and
Sri Lankans, however, it meant not ‘yes’, but ‘no’.
So, as a master hand, he must try his best to know as much as information of
his
counterpart,
the
proficiency
of
languages
and
negotiation
techniques
are
not
enough, he also needs to have some mastery of the non-verbal behavior of different
cultures. People use body languages more frequently in daily life. Excellent language
and communication can help us make success.
3.2 Values
Values
are
the
standards
by
which
a
culture
evaluates
action
and
their
consequences. They affect perception and can have a strong emotional impact upon
people.
In
different
cultures,
values
may
vary
significantly.
One’s
proper
actions
in
one culture can be seen as wrong in a moral sense in another culture.
Thus, it is important to understand the prevailing values in a particular society
and the extent to
which
they
are respected in
the everyday behavior of individuals.
Values
affect
the
willingness
to
take
risks,
the
leadership
style
and
the
superior-subordinate
relationships,
etc.
This
is
true
for
the
relationships
between
negotiators within each team. Every culture has defined priorities for every aspect of
social
life.
The
discussion
here
will
focus
on
values
critical
for
understanding
the
economic
performance
of
a
society,
more
specifically,
and
the
value
that
deserve
attention in order to develop intercultural communication skills.
3.2.1 Value towards Time
Value towards time and how they shape the way people structure their actions
have
a
pervasive
yet
invisible
influence
on
international
business
negotiation.
Differences in punctuality, reflected in everyday negotiation behavior, may probably
appear
as
the
most
visible
consequence.
But
differences
in
times
orientations,
especially toward the future, are more important as they affect long-range issues such
as the strategic framework of decision made when negotiating.
3.3.2 Value towards Relationships
Different
patterns
of
relationship
affect
international
business
negotiations
through
the
style
of
interaction
between
people,
their
decision-making
process,
and
the way in which they mix human relationships and business matters, etc.
3.3 Decision-making Process
When faced with a complex negotiation task, people in different countries may
use different approaches to make a decision. Knowing these differences will facilitate
anticipating the reactions of the other side in business negotiation.
4. Different Negotiation Styles
4.1 The American Negotiation Style
The
United
States
is
among
the
most
advanced
countries
in
economy
and
technology in the world. Both its language and currency occupy an important place in
the
world
economy.
English
is
the
most
commonly
used
language
in
international
negotiations
and
fifty
percent
of
the
world
trade
adopts
the
U.S.
dollars
to
settle
accounts. All of these factors make the American feel very proud of their country and
possess
very
strong
national
pride
and
glory,
which
are
fully
put
up
in
their
trade
activities. They often leave a deep impression of superiority to foreign negotiators.
Americans emphasize free competition and individualism. Very often, the
emphasis
on
self-interest
and
freedom
of
the
individual
can
run
counter
to
cooperation,
commitment
and
community.
The
business
firm
values
the
person
who is mobile, energetic, creative and ambitious.