Dimensions of Success in Business Negotiation

Topics: Negotiation, Culture, Cross-cultural communication Pages: 12 (3181 words) Published: May 8, 2014
University of International Business and Economics (UIBE)

Dimensions of Success in Business Negotiation
A Comparative Study of
Chinese and Thai Business Negotiators

Term Paper
Spring, 2014

Sarawin Mangmeesapsin

Cross-Culture Management - IB508
Prof. Huang Zhenhua

Dimensions of Success in Business Negotiation
A Comparative Study of Chines and Thai Business Negotiators

1. Introduction

Negotiating with firms from different cultures face many challenges, from initiating and smoothing communication to establishing long-lasting relationships and mutual trust, as well as, from drafting agreements to delivering their offer conductions. To mention about Chinese negotiators, they can be at once warm hosts and friends, then turning into tough bargainers (Sebenius & Qian, 2008). The unique Chinese cultural elements, influencing by Confucianism, Taoism, and war stratagems, show the heavy reliance on interpersonal relationships instead of legal instruments and are included in the complexities of foreign business negotiations, and can make the process tougher and more protracted (Fang, 2006). As for Thai cultures, Negotiating with executives from different cultures requires an understanding and adaptability to these differences. Special approaches for particular cultures may be needed. An international business negotiation within the Thai culture, in particular, would require a unique emphasis from other cultures to achieve positive results in negotiations. Buddhism and Kreng Jai, a unique Thai cultural indirect form of communication, have been the most influential factors for Thai negotiators. These factors effect on how Thai people perceive themselves (Barr, 2004) The purpose of the study is to make a comparison of the preferred negotiation style follows in Chinese and Thai business in business situation. This provides the background to understand the cultural roots of the negotiation process. The specific emphasis in this study has been placed on the following topics; the International business negotiation, the philosophical foundation of negotiation behavior and negotiation strategies. The investigation aimed at the finding out the differences and similarities, which illustrated across the different cultures.

2. International Business Negotiation
In this section, perspectives of definition and process of international business negotiation are reviewed. As explained by Ghauri (1996), deliberate interaction of two or more social units, originating from different nations that are attempting to define or redefine their interdependence in a business matter. Generally, the process of negotiation consists of three different negotiation stages including the pre-, actual negotiation, and post- stages. First of all, the pre-negotiation stage is the first stage of negotiation emphasizes getting to know each other, identifying the issues, and preparing for the negotiation process. The negotiation stage involves a face-to-face interaction, methods of persuasion, and the use of tactics. At this stage negotiators explore the differences in preferences and expectations related to developing an agreement. Lastly, the post-negotiation stage relates to concessions, compromises, evaluating the agreement, and following-up (Ghauri, 1996).

3. Theories: Hofstede’s Five Cultural Dimensions
Understanding the influence of culture in negotiation reduces confusion and misinterpretations in the process. Negotiators need to be aware of such cultural differences and become well prepared for them. This study employed Hofstede (1991) proposed five cultural dimensions to assess the values, which characterize specific patterns in order to analyze the cultural diversity as following explanations. The first dimension is social inequality or power distance, which is the extent to which the less powerful members of institutions and organizations within a culture and accept that power...

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