Cultural Characteristics and Negotiation Styles

Abstract

Numerous factors can affect the results of the negotiating process. Successful negotiation not only requires acquiring technical communicative abilities, but also an understanding of the cultural context of the negotiation by both parties. Due to its size and rapid economic development, China has become an increasingly important factor for world economy and growth. Until recently, conducting business in China has been a challenging and sometimes futile venture for businesses trying to break into this lucrative market because China’s government has maintained very strict rules for the import of goods and services for resale to China, while widely exporting Chinese goods and services. The approach uses Casse and Deols’ model and cultural factors including education, religion and degrees of individualism/collectivism to be the dependent and independent variables. Data were collected from public companies listed on the stock exchanges of China by means of an online survey method. Structural equation modeling was used to test hypothesized models and hypotheses of research. The findings show that education, religion and degrees of individualism/collectivism affects the style of negotiation. These findings could be useful in the application of a specific set of values and attitudes that relate to regional cultural attributes, and develop better negotiation skills by providing insights into the nuances of international negotiations. The researcher suggests that the negotiators still need to be trained in body language, strategies, temper control, international manners, and customs. A better knowledge of negotiation should be helpful in understanding business and in realizing which negotiation styles are most appropriate for a particular country.