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CAILLIER Hugo Master Thesis. International Negotiation
 

CAILLIER Hugo Master Thesis. International Negotiation

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How do French negotiators should use the following variables" Relationship, team work, leadership, bureaucracy and time" as assets during international negotiations with Mexican

How do French negotiators should use the following variables" Relationship, team work, leadership, bureaucracy and time" as assets during international negotiations with Mexican

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    CAILLIER Hugo Master Thesis. International Negotiation CAILLIER Hugo Master Thesis. International Negotiation Document Transcript

    • CAILLIER Hugo FINAL Master THESIS How do French negotiators should use the following variables “Relationship, team work, leadership, bureaucracy and time” as assets during international negotiation with Mexican? Due Date: 21st of November 2011 Academic Director: Dr. Ian Speakman
    • CAILLIER Hugo Influence of culture on negotiationCAILLIER Hugo FINAL Master THESIS Academic Director: Dr. Ian Speakman How do French negotiators should use the following variables “Relationship, team work, leadership, bureaucracy and time” as assets during international negotiation with Mexican? Due Date: 21st of November 2011IESEG School of Management Lille - Paris3 Rue de la Digue59000 Lille“IÉSEG do not give any approval or disapproval to the opinions expressed in the thesis and these opinions should be considered as those of the authors”June-December 2011 – IESEG School of Management 2
    • CAILLIER Hugo Influence of culture on negotiationStatement of confidentiality: Statement of confidentiality: This thesis may be freely available for academic purposes and evaluation. The names of the interviewees have been removed for confidentiality purposes.June-December 2011 – IESEG School of Management 3
    • CAILLIER Hugo Influence of culture on negotiation Acknowledgement To start this report, I would like to thanks personally all the persons that wereinvolved in this project during all this semester. In fact, this thesis represent a bigamount of time by doing the researches, defining the research methodology, findingcompanies to interview, analyse the data and explaining them. The first person that helped me in this work was my academic director: Dr. IanSpeakman who assisted me to design this research and gave me advices on how toproceed to collect the information I needed during all the semester. I am also grateful for all the time that the French businessmen took to answermy interviews. I know that they had to spend some personal time taking theappointments with me and doing the interview. Furthermore I would like to thanks are the other students that did their thesisduring June-December 2011 and with who we talked a lot about our own thesis andpermitting us to share ideas about our research questions and process to use. They alsohelped a lot for the rereading of the final work we did for each other.June-December 2011 – IESEG School of Management 4
    • CAILLIER Hugo Influence of culture on negotiation SummaryFINAL Master THESIS .............................................................................................. 2Statement of confidentiality: ................................................................................... 3Acknowledgement ................................................................................................... 4Summary ................................................................................................................. 5Abstract................................................................................................................... 71. Introduction ..................................................................................................... 9 1.1 The research problem statement ........................................................................ 9 1.2 The research objective ...................................................................................... 10 1.3 The main research questions ............................................................................ 102 Literature review ............................................................................................ 13 2.1 Conceptual background .................................................................................... 13 2.2 Limitation of the literature review .................................................................... 483 Research methodology ................................................................................... 50 3.1 Research design................................................................................................ 50 3.2 Research methodology ..................................................................................... 564 Findings ......................................................................................................... 66 4.1 Introduction ..................................................................................................... 66 4.2 Descriptive statistics ......................................................................................... 66 4.3 The findings...................................................................................................... 70 4.4 Summary of the findings ................................................................................... 875 Discussion ...................................................................................................... 89 5.1 Cultural differences .......................................................................................... 89 5.2 Group dynamic ................................................................................................. 91 5.3 Bureaucracy and Frencheness ........................................................................... 92 5.4 Leadership ....................................................................................................... 94 5.5 Time and relationships ..................................................................................... 96 5.6 Negotiation styles............................................................................................. 986 Conclusion .................................................................................................... 101 6.1 General conclusion ......................................................................................... 101 6.2 Managerial implications ................................................................................. 103June-December 2011 – IESEG School of Management 5
    • CAILLIER Hugo Influence of culture on negotiation7 Limitations of the research ........................................................................... 1048 Directions for future research ....................................................................... 1069 Personal reflection and key learning ............................................................. 10810 References ................................................................................................... 10911 List of figures................................................................................................ 11212 List of tables ................................................................................................. 11313 Table of content ........................................................................................... 11414 Appendices................................................................................................... 117June-December 2011 – IESEG School of Management 6
    • CAILLIER Hugo Influence of culture on negotiation Abstract Nowadays, Mexico is a developing country with lots of opportunities for FrenchSME and international groups to enter new markets and create new businessrelationship with Mexican companies. In fact, Mexico is taking a bigger part every dayon the international environment, highlighting two main facts: the year of Mexico inFrance in 2011 and also the general growth of exportations (+9.7 % / Year) andimportations (+5.3% / Year) since Mexico open is borders in 2000 for internationaltrades. But in the same time, Mexico has a culture very different from the French oneeven if they are both Latin. So the remaining barrier in the expansion of Frenchcompanies in Mexico will be the cultural gap that remains. The negotiation process isthe first one to be touched by the cultural differences but then, the outcome will beaffected too. The objective of this work will be to identify and explore the main culturalelements that are responsible of this gap and try to find a way to use them as a toolduring the negotiation and not as a threat. This might end in a change of the negotiationstyle and the way the businessmen prepare their meetings. This report will be composedin four main parts: - The first part will be a literature review about the main subjects of this thesis such as culture, negotiation, France, Mexico and interpersonal communication. - The second part will summarise the technics that have been used for the creation of the research methodology.June-December 2011 – IESEG School of Management 7
    • CAILLIER Hugo Influence of culture on negotiation - The third part is a recap of all the data that has been collected and analysed. Those data has been collected by doing qualitative research. - And the last part will be a comparison between the literature review and the findings that will permit to see what this work added to the selected topic.June-December 2011 – IESEG School of Management 8
    • CAILLIER Hugo Influence of culture on negotiation1. Introduction The introduction of this report will present the main topic that will be approachedby the research, its objective and finally the main problematic that we will work on. Wewill finally have an overview of the main research question and sub-questions that willbe asked in order to focus the research on restricted criteria. 1.1 The research problem statement For the last decades, globalization had a growing effect on the quantity ofinternational business interactions. The main problem that affects those interactions isthe cultural differences between two different countries. Of course, globalization resultsin erasing a bit those differences with time creating what we could call an “internationalculture”. But still, the culture of an individual cannot be totally melted or erased. So themain point of this research will be to find a way to deal with those differences in orderto enhance intercultural interactions. The culture itself is the main element that can be manage in order to generate abetter outcome to the negotiation. We can find two main types of culture: the first oneis the organizational culture that defines the strategy of the company; the people thatare involved in it, the history, the way decisions are took. The second one is thecountry’s culture. This report will not talk about company culture because that wouldcreate two much variables to take into account inside the same country or region.Moreover as each country has at least one culture, it would be impossible to talk aboutcomparing all the world cultures together. For being French and spending lots of timein Mexico and with Mexicans, the author chose to focus more specifically onnegotiation between French and Mexicans.June-December 2011 – IESEG School of Management 9
    • CAILLIER Hugo Influence of culture on negotiation 1.2 The research objective It has been said that most of the time, when you confront people from differentcountries, the culture’s effect will be negative on the interactions that will be created bythis meeting. «Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster." Prof. Geert Hofstede In other words businessmen will face a difficulty while doing internationaltransactions but not much people try to explain what to do and how to do to getsmoother intercultural relations. That is the reason why we chose this topic as a studytopic. The objective will be to define and extract the main components of culture andsee how they can be managed in order to get a better relationship and outcome. Weknow that those components will be present in all steps of the negotiation process andwill affect the outcome differently depending on the different country involved and ontheir preparation for this intercultural interactions have been made. So this research willfocus on Business to Business (B2B) negotiations between French’s and Mexican’sSmall and Medium Sized Enterprises (SMEs). 1.3 The main research questions The topic of this research is still very large to work in. So after having studiedpast researches and papers that have been done about it and gathered information aboutthe two cultures, it has been chose to focus more on the importance of some aspects.The main points that will be studied here will be: the group dynamic, the FrenchJune-December 2011 – IESEG School of Management 10
    • CAILLIER Hugo Influence of culture on negotiationbureaucracy, the leadership, the time and relationships and their effects on thenegotiation process. By defining those, we obtained the final research question: “How do French negotiators should use the following variables “Relationship, team work, leadership, bureaucracy and time” as assets during international negotiation with Mexican?” We can also understand in this question that it has to be found a common fieldbetween both countries in order to get an advantageous outcome for both of them. Mostof the time, one country will have tendencies to impose his own culture and his way ofapproaching the problem they face without taking care of the other culture even if thisis totally unconscious. 1.3.1 Sub-questions The first statement that will be tested in this thesis will be: How the Frencheness and the bureaucracy can be a barrier for negotiationswith Mexican? In this part, we will see how the French perceives their own culture and whatdescribes the best the French’s culture. It will define more explicitly how the Frenchnegotiate and how they feel the Mexicans react about the way they negotiate. The second sub-question that will be studied is about what describes the best theMexican culture and how it can affect the negotiation styles of Mexican and French.This will be a good way of understanding how French perceives the Mexican cultureand what are the main aspects of it that create problems during the negotiation.June-December 2011 – IESEG School of Management 11
    • CAILLIER Hugo Influence of culture on negotiation How do French perceive and should manage the Mexican culture in orderto use it as an asset? The last point will be a crossed view between the French and the Mexicannegotiating style defined by their cultures. It will explore the limits of both negotiationstyles defined by the main cultural aspects that define their behaviour. How does culture of one country interfere on the negotiation style of bothcultures?June-December 2011 – IESEG School of Management 12
    • CAILLIER Hugo Influence of culture on negotiation2 Literature review The literature review is composed in two parts. The first one is an analysis partbased on the previous works that have been made by searchers on the topics that havebeen approached during this research. The second one is the limits of the literature thatwill describe the need of this research in order to answer the research question weasked. 2.1 Conceptual background The conceptual background concern the mains criterion that influence interculturalnegotiations that have been found by reading several articles and comparing works oftwo authors’ Salacuse and Hoftstede (cf appendix 1 and 2) 2.1.1 CultureHofstede Professor Geert Hofstede (2001) has been one of the first researchers to focushis entire work on the description and the effects of culture. So nowadays, it seemslogical to use his work when we are talking about culture as it is the work the most useas reference in all cultural papers. The study he started was at first linked with his workat IBM in 50 different countries. Then he decided to extend it to 74 countries in order tohave more comparisons possible. Each country gets a score about four generaldimensions at the start. Then he added a new dimension few years ago. The fivedimensions will be review here shortly using the website publication of his work. Thosedimensions are a really good way of comparing different cultures between them butalso to understand better what its components are.June-December 2011 – IESEG School of Management 13
    • CAILLIER Hugo Influence of culture on negotiation Power distance Index (PDI) The power distance index is the first dimension Hofstede used to rank cultureamong countries. The PDI represent the level of acceptation by the person that is downin the hierarchy the power of the person that is at the top. It is can be compared also asinequality. Any society is very reactive to power and inequality like is it wrote in thearticle: “all societies are unequal, but some are more unequal than others”. Individualism (IDV) Individualism is the opposite of collectivism and it shows the level ofintegration of an individual alone into groups. Individual societies are representatives ofthose were there is no relation between individuals and each one has to take care ofhimself. In collectivist societies, individuals are from their birth to their death linkedwith a group which one is able to help him in exchange of loyalty to it and helpingother individuals of the same group. All societies in the world are concerned about thelevel of individualism of their population. Masculinity (MAS) It is the opposite pole of femininity that represents the place each gender willplay in the society. An interesting fact is that women’s value are more similar from aculture to another than men’s value are. From a society to another, a man will becompetitive and assertive (the opposite of woman) in a country and totally modest aswoman in the other society. Feminine countries are the one that are more modest andwhere women have the same values as men. In masculine countries, there is a biggerbreach between both women and men’s values.June-December 2011 – IESEG School of Management 14
    • CAILLIER Hugo Influence of culture on negotiation Uncertainty Avoidance Index (UAI) It describes the aversion of a country to ambiguity and uncertainty. In hisextreme, it refers to the research of the truth. The score of the country will show ifeither the individuals will feel confident or not in unstructured situations. Uncertaintyavoiding societies will minimize the possibility of an unexpected outcome of anysituation by putting rules, law, measures. It can be also describing people that are moreemotional and motivated. Uncertainty accepting societies will be more open tooutsiders as ideas or technics and will try new things to see and rank all thepossibilities. They are less emotive and contemplative. Long Term Orientation (LTO) This last dimension was added only few years ago after a study done withstudent of 23 countries using a Chinese scholar questionnaire. The values that arelinked with long term orientation are frugality and perseverance and for short termoriented are respects for traditions, respecting and doing social obligations. Both shortand long term orientation found some equal values in the work of Confucius, a Chinesephilosopher from around 500 BC. So we can now draw a general definition of culture based on Hofstede work andcompleted with the work of Birukou, Blanzieri, Giorgini, Giunchigli (2009): ”Culture is a set of variables that describes all the product of the human workand thought from a group of people or organization from the same geographic place”.June-December 2011 – IESEG School of Management 15
    • CAILLIER Hugo Influence of culture on negotiation 2.1.2 TimeLebaron The work of Professor Lebaron Michelle (2003) is to understand better culturaldifferences and worldview differences. In her work called “beyond intractability” shestarts with a good warning, take care about generalizations. It says that thosegeneralization are only good to give guidelines to understand the main aspects ofculture, but then, you have lots of other variables (such as time, setting,…) that comeinto account and that you do not only have to add them, but mix them together to havethe real aspect of culture. In fact, the Mexican’s culture is often facing the problem ofgeneralization. They are compared with South American, which are of course Latin aswell and speak Spanish (except Brazil) but are very different in term of negotiation.They are also compared with the Americans as they have 3200 km of border incommon but as this border is very hermetic, the culture are not similar at all.Meanwhile, generalization gives some bounds and gives the common sense tounderstand what is “normal”. As you are into a group, you can see if you are the sameas the other person that compose your group or if you are totally different, that canmean that you belong to another group. Lebaron also explain that most of the time,western tools were applied to eastern cultures so when the time to draw conclusionarrives, eastern culture will be misunderstood and misinterpreted. It is admitted thatthere is no right approach to negotiation but you can only find better way to get a goodnegotiation process than other. Taking this in consideration, negotiators will progress abit more in cross-cultural negotiation.June-December 2011 – IESEG School of Management 16
    • CAILLIER Hugo Influence of culture on negotiationTime It is kind of hard to give general explanations about all the theories that are linkto time. In fact, the time will affect lots of other parties as it is linked with relationshipfor example. So Lebaron enunciate time as the first factor that affect cultures. In fact itexists two different orientations of time. The first one is polychronic that means manythings will happen at the same time whereas monochronic oriented means that thingswill happen in order, one after the other. France and Mexico are both polychronicoriented which means that it might not create trouble during the negotiation process andfor establishing the relationship. Both polychronic and monochronic negotiators havesome particularity.Polychronic oriented can be defined by: - Starting the meetings at different time, - Make several break when it seems necessary, - Can manage lots of information at the same time, - Can talk too much during the meetings, - Do not care about a specific hour to start the meeting and do not take the fact of being late personallyMonochronic oriented will be defined by: - Better have their beginnings and endings written - Prepare break to be at a certain time, - Take the agenda line by line. - Rely on specific, detailed, and explicit communication, - Sequence his interventionsJune-December 2011 – IESEG School of Management 17
    • CAILLIER Hugo Influence of culture on negotiation - Do not accept other to be late, correspond to disrespect There is also the relation to past, present and future that negotiators do duringthe negotiation process which can play an important role in the final outcome. Ingeneral, Latin America cultures are past and present oriented. The second variable took into consideration here is the space orientation. In factit is much related to cultures. To get a concrete example, northern European countriesare used to have more space than south European country. It is impact also by thedensity of the country. In the case of Chinese for example, they are getting more closeduring business contact as they are more accustomed to proximity. Some tactile normsalso exist, depending on each culture. In fact Mexicans are much more tactile thanFrench, they used to hug friends to greet them. Space is also a variable that take intoconsideration eye contact or lack of eye contact. In Asia, looking down is a sign ofrespect whereas in Europe, it is more common to look directly in the eyes. Then close to space, Lebaron worked on the theme of non-verbalcommunication. When Japanese use a lot silence time during negotiation, American useonly a few and Brazilian nearly none, like this we can see the huge disparity aboutnonverbal communication. Then, the author took the 3 of the 5 dimensions of Hofstede to give a quickoverview of the culture. She will only pick Power distance, uncertainty avoidance andmasculinity. Those will be explained further in a review of the work of Hofstede. Thecross cultural negotiator is someone that need an adaptive skill as culture is all the timemoving and influenced by other cultures and behaviors. Then Lebaron used a study ofAdler (1997) that compared American, Japanese, Taiwan and Brazilian negotiators. Onthe characteristic they identified, American and Brazilian were very close, JapaneseJune-December 2011 – IESEG School of Management 18
    • CAILLIER Hugo Influence of culture on negotiationfocused more on interpersonal negotiation style and Taiwan, being persistent anddeterminate. Then the author describes a little bit further each on the approaches tonegotiation. We will not go further on the US, Japanese and African approach as wewill not need it for my research but then, the European style is described and the Frenchone is gave as the most aggressive one with threats, warnings and interruption in orderto get the best outcome as they can. And the Latin American style description is prettycomplete. In fact, the time and task accomplishment is not valued as it is in America orEurope. They give more importance to the person. Negotiations are most of the timedone inside a network that already existed before the negotiation starts. In this case, anyrupture or walk away is avoided. It also has a lot to see with the “confianza” (trust). It istrue that a Latin American will start a negotiation with you only if he knows you well.That is why they use the small talks to learn a bit more about each other, their family,hobbies, … Nowadays, cross-cultural negotiation tends to be more and more focusedon the western approach focused on problem solving using a list of tasks and directcommunication. 2.1.3 Group dynamicFiona Beddoes-Jones The first person to talk about the modern evolutionary theory was CharlesDarwin (1871) and he explained that the way of living in a group is an adaptive tacticfor all kind of species include Human. Then the study of the group dynamic startedafter the Second World War. Beddoes-Jones (2005) says “the dynamics of a group arethe constantly changing relationships and influences that occur between the peoplewithin the group”. This relationship status is changing among some external andinternal variables such as time, mood of the person inside the team, budgetaryJune-December 2011 – IESEG School of Management 19
    • CAILLIER Hugo Influence of culture on negotiationconstraints... The Tuckman’s 1965 process model of group dynamics gave thefollowing 5 steps: Figure 1 Tuckmans model of group dynamics Source: Beddoes-Jones - Train the trainer – 2005 This model represents the basis of the theory about group dynamic. The firststage is the forming stage where the members of the group will meet and might createsome conflict in order to know the limits of the relationship and establish a certainhierarchy between them. Then start the storming stage when people have theirboundaries well define and start to feel more comfortable. That take us to the normingstage where people start to work together but it’s only on the perform stage where thegroup will obtain a certain productivity and will reach the objectives they had. The laststage called mourning was added by Beddoes-Jones herself. This one represent the timeafter the team achieved their first objectives and will have a global feedback about howthey get there. Some changes in the group dynamic might be done (like the role of eachperson) in order to mourn the old group or group dynamic and start a new one. Thepeople in a team might stay the same within different rounds but the dynamic canJune-December 2011 – IESEG School of Management 20
    • CAILLIER Hugo Influence of culture on negotiationchange at every round. A risk can be carry around this process: the group might staystuck in some stage of the group dynamic depending on the subject or the peopleinvolved for example.In order to have a group that is efficient, 4 team roles models have been invented. - Belbin’s Team roles This one is the most known of all the models and the most used also. Itcomports 9 roles founded on people’s behavior: “shaper, team-worker, resourceinvestigator, monitor evaluator, plant, completer-finisher, implementer, coordinator andspecialist”. - Cognitive Team roles This role model based his roles repartition on the thinking of each person of theteam focused on the achievement of the objective. The roles are divided into three maincategories: “a sensory, a people and a task focus.” - The Team Management Wheel This one is more focused on the preferences of the person that compose theteam: “creator, promoter, developer, organizer, concluder, inspector and maintainer”. - Myers’s MTR-i For this model, they used the Myers Briggs Type Indicator (MBTI) to define 8main roles in the dynamic group: “coach, campaigner, explorer, innovator, sculptor,curator, conductor and scientist.” So Beddoes-Jones gave us an overview of what a group dynamic is, how it iscreated and processed and the risks that can appear during the group interaction.June-December 2011 – IESEG School of Management 21
    • CAILLIER Hugo Influence of culture on negotiation 2.1.4 Defining and exploring French and Mexican cultures In this part we will explore the studies that have been made about both Frenchand Mexican cultures. We will focus on specificities of both cultures and also on theirB2B’s cultures. 2.1.4.1 France 2.1.4.1.1 French cultureThe Frenchs and their country France is a very homogenous country reuniting lots of different cultures giving avery eclectic French culture (Katz 2007). This culture is made from one part by thehistory of the country that is heavy and created lots of differences with other Europeancultures. The second part of this culture has been made by the melting pot operatedduring the year in all Europe. So in most of cases, French already had internationalinteractions with persons from other cultures inside their own country. Misconduct,trust and misunderstanding will be keys success for people that want to be wellintegrated in France.The Frencheness French are very proud of their history and their nation. So any kind of disrespectwill be highlighted and will be a source of conflict. The Frencheness is defined asfollow: all products, institutions and other symbols linked to France and making theproud of the country in the world. France has a very global culture but at the same timea regional culture that might be very different from one to another. In fact food, danceand even language might be different from a region to another so that might be a factorto take into account also to not frustrate French when planning to negotiate in France.June-December 2011 – IESEG School of Management 22
    • CAILLIER Hugo Influence of culture on negotiation The level of Frencheness will depend on four major elements: - The age of the person - The history of his family - His level of education - And the degree of practice of Catholicism (dominant religion in France)B2B French culture Business To Business relationships in France are quite different from othercountries by the fact that there is a high level of respect of several rules due to historyand habits. In order to have a business relationship in France, it is not necessary tocome in team. Also, English is now spoke by most French businessmen so to hire atranslator might not be useful. Meetings might start late in France after a smallconversation time but you should arrive on time or not more than 10 to 15 minutes late.Also, French will gather lots of information about the other person they are interactingwith in order to be able to know more about the history and personality of the personbefore they meet them. The use of Monsieur/Madame is also a convention that has tobe respected (or replaced by the title if any) and should be directly followed by thefamily name. This title should appear on your business card but as most of French areEnglish speakers, you can leave them in English or traduce them in French but in theMexican case, Spanish should not appear on it as very few persons speaks fluentlyspanish in France. Personal comments and private life of the persons involved in themeetings should not be given in the small talks or the business interactions itself. Thepresentations materials should be light and concise. French prefer to focus on the mainpoints without paying attention to the small details or any other flashy or exaggeratedJune-December 2011 – IESEG School of Management 23
    • CAILLIER Hugo Influence of culture on negotiationpresentations. Also as bureaucracy plays a very important place in French society, it ispreferable to keep a trace of any kind of agreement you should have by oral. This willpermit to have a legal issue of the agreement but also it will show your commitment inthe relationship. As we will see on the next part, women are well accepted in thebusiness word as the equality between genders is growing. 2.1.4.1.2 Hofstede 5 forces applied to France Following the work that did Hofstede about all the culture he studied, wenoticed that France has only four dimensions tested among the five of the currentmodel. The last Long Term Orientation has no grade and so will not be used in thispart. The score France has for each dimension is the follow: Dimension Score Power Distance Index 68 Individualism 71 Masculinity 43 Uncertainty Avoidance Index 86 Table 1 French’s scores of Hofstedes model France has a level of Power Distance that is quit high but stay moderated. So itmeans that in France you expect to have inequalities and that they are accepted. Theless powerful will be expecting to be led by a more powerful person. In fact French areused to show more respect for person that are older for example. It is normal to seethem above in the company even if sometimes they are not as qualified as the own theyJune-December 2011 – IESEG School of Management 24
    • CAILLIER Hugo Influence of culture on negotiationare managing. However, some points counterbalance like for example the range ofsalaries is quite restraint and that created a middle class very important. The Power Distance also is amplified by the second dimension studied. Francehas a very high level of individualism. The identity of French citizen is based on theindividual itself. Lots of importance is put into the importance of the getting graduated,sign of self-esteem and economic success. Another point that is important into thenegotiation context is that in individualistic societies, the business to deal with is moreimportant than the relation with the other part. In France, masculinity is low, scoring only 43 over 100 points. A femininesociety will affect work, studies, family, politic and ideas. In France, the balancebetween Male and Female tends to be the more equal as it is possible. Both partnerswill play the same role in the couple and in the education of the children. The educationis important but the success itself is not the keyword. Also, some point of attention inthe French society is the preservation of the environment, and equity and liberations ofwomen in all levels of the societies are also component of a feminine society. Uncertainty avoidance is the preference for the people to know what willhappen in the future. France has a high level of uncertainty avoidance. This took Frenchcitizen to adopt a lifestyle based on security where people have a high level of stress.This will also be a barrier to any kind of change. A good effect of this high level ofuncertainty avoidance will be the level of study that young reach in order to reduce therisk of unemployment and get economical securities for their future. An economiceffect of this high rate will also be a high confidence in banks as they are a good way tosave money for future, better than investing in the share market. Meanwhile, anacceptance of familiar risks will be created for people that are looking for constancy.June-December 2011 – IESEG School of Management 25
    • CAILLIER Hugo Influence of culture on negotiation We can notice in the graphic below that two important categories arehighlighted for France: Individualism that is very high and combined with a moderatedlevel of power distance index. The second one masculinity is the result of the years offight for human and woman rights in France that is an example for several countries inthe world. France Power Distance Index 100 80 60 40 20 Uncertainty 0 Individualism Avoidance index Masculinity Figure 2 French’s Scores of Hofstedes model 2.1.4.2 Mexico 2.1.4.2.1 Mexican cultureThe Mexican and their country According to the Communicaid group (2009), specialized in culture among theword, the United Mexican States are a melting pot of several cultures that made of theculture of this country a very rich one combining history and external influences. Thehistory of Mexico has as roots the indigenous tribes as Aztecs, Mayas, Zapotec… Then,Spanish brought their culture when invading the country and bringing also the AfricanJune-December 2011 – IESEG School of Management 26
    • CAILLIER Hugo Influence of culture on negotiationcivilization through the slaves they used to exploit the country’s resources. Finally, bytheir proximity with United States of America, they also have a high influence ofnorthern cultures. So in order to interact in Mexico environment, a good understandingof this mix is primordial. The communication style used by Mexican might tend to be very different thanthe one of French for example. They use indirect style in order to be more diplomaticand avoid any types of confrontations. So using this kind of communication mightenforce the relationship you will create with your business partner. Family also has avery important place in the Mexican culture. As Mexico is a collectivist culture, thefamily is first group of affiliation of all the individuals. Also, it will be a current fact tofind relatives of the same family working for the same company in Mexico or whocreated a business together. Time is also a very important criteria of Mexican’s culture.The Mexican uses both words “manana” (tomorrow) and “ahorita” (later) in the sameobjective, to delay something from some minutes to a day or more. This will create apace of work and of meeting that can be slower than in European culture.B2B Mexican culture Since 2000, the president of Mexico is no more from the InstitutionalRevolutionary Party and permitted to open more largely his borders to transatlanticbusiness. Since there, the number of international trading with Mexico is in net gross aswe said in introduction. In the meantime, Mexicans are less used to negotiate with otherculture and will not adapt their habits to foreign ones. So when negotiating with them,you should take care of not being brusque and respect their habits and customs. As wejust saw, the relation to time is very important in the Mexican culture as it is inbusiness. So Mexican meetings might be longer than what businessmen are used to, butJune-December 2011 – IESEG School of Management 27
    • CAILLIER Hugo Influence of culture on negotiationthe principal aim of Mexicans is not the contract itself but more how the relationship isdeveloped among time. However, even if the Mexicans might arrive late at meetings(up to 30 minutes normally), they give lots of importance to the planning of the meetingand you sure will have to confirm that you are coming or not to it. The meetings mightbe organized during the lunch time that can last several hours sometimes. The breakfastcan also be a good way of creating and improving the relationship with your partners.The meals are important into the relationship construction as it might be a good way oftesting Mexican specialities and showing interest for their food and their culture. The hierarchy of the companies is also very well defined between the employeesand should be treated with care in order to respect the boundaries between the differentscales of the company. If you are negotiating with a team, try to talk with the personthat has the same place in the company as yours or with the person that will be directlyconcerned by the matter. And therefore, the use of the appropriate title will be welcomeas it reflects most of the time the hierarchy. You might need to be introducing by acontact to your business associates in order to help the relationship’s creation as yourcontact already knew the person you wanted to meet. 2.1.4.2.2 Hofstede 5 forces applied to Mexico As for France, Mexico only has four of the five dimensions that are normallytested for all countries. Mexico was one of the first countries to be studied by Hofstedebecause of his proximity with the United States of America. Here are summed up thescores of Mexico for the four main Hofstede dimensions:June-December 2011 – IESEG School of Management 28
    • CAILLIER Hugo Influence of culture on negotiation Dimension Score Power Distance Index 81 Individualism 30 Masculinity 69 Uncertainty Avoidance Index 82 Table 2 Mexicans scores Hofstedes model The Power Distance Index of Mexico is very high. In fact, in this country, itexist lots of inequalities. It is very common to show your economical health by living inprestigious house with numerous cars and domestics. Even if in the same time the otherpart of the population lives in precarious situation. The range of salaries is very largestarting at 300 dollars per month for the minimal salary47. Contrary to France, Mexico has a very high level of collectivism. They aremuch more family-based than France. When an individualistic society will try to sayalways the truth about what they think, a collectivist’s one will try to avoid conflict andkeep a general harmony. The management also is very large; it does not take the personitself personally but take all employees as a group. As we also noticed above, forMexican the relationship is much more important than the contract itself. Mexico recorded the second highest score (after Venezuela) of masculinity ofHofstede’s dimensions in South America. This means that this country is highlyoriented among Males. The men decide of most of important decisions in the societyand other power structures (politic, family, companies). This situation will create morecompetiveness among the women in the society between them, but not with males. Infact in Mexico, persons give lots of importance to money and things that you own.June-December 2011 – IESEG School of Management 29
    • CAILLIER Hugo Influence of culture on negotiationOpposite to feminine societies, Mexican will be waiting for feelings coming fromwomen and men will be responsible for the facts and will take decisions. The last dimension that has been given by Hofstede about Mexico is theuncertainty avoidance index. The score of Mexico is nearly the same as the French one(82 and 86 for France) but is high compared to the other Latin cultures. The effects onthe society are nearly the same as the ones in France. The big difference might be aboutthe level of stress suffered by Mexican compared with French. In fact, only 15% ofMexican said that they found themselves frequently stress in their daily life (CBSNews, 2009). But the will of knowing what the future reserves to the Mexicans create amore controlled life with more rules and laws even if the corruption present in thiscountry reduce the efficiency of those regulations. The last of the five dimensions (Long Term Orientation) has not be done for theMexican culture so the Hofstede model of Mexico will only be described with the fourdimensions above. The collectivism of the country is the most remarkable fact of thisculture that makes them very supportive among his citizens.June-December 2011 – IESEG School of Management 30
    • CAILLIER Hugo Influence of culture on negotiation Mexico Power Distance Index 100 80 60 40 20 Uncertainty Avoidance 0 Individualism index Masculinity Figure 3 : Mexican’s Scores of Hofstedes model 2.1.5 Cultural negotiation 2.1.5.1 Blake and Mouton With the increasing flow of business interactions since the last 60 years, thenegotiation has been a field that have been improved a lot by scholars but the ones thatcreated the basement of negotiation styles were Blake and Mouton (1964). Theycreated the main model that was a two axis based model. The first Y axis isassertiveness and the X axis is cooperativeness.June-December 2011 – IESEG School of Management 31
    • CAILLIER Hugo Influence of culture on negotiation Assertiveness is the will that a person will provide in order to satisfy his ownneeds while cooperativeness is how a person is interested in satisfying the needs of theother part. So managing those two variables you will obtain 5 different negotiationstyles that are presented on the figure below. Figure 4 Five negotiation behavioral styles Source: Slides of Dr. Ian Speakman’s class - Avoidance style: (unassertive and uncooperative) It is the first negotiation style where the person is not interested neither in fillinghis own needs or the ones of the other person who he is negotiating with. This can haveas outcome to postpone the meeting, or just running away from any form of interaction.June-December 2011 – IESEG School of Management 32
    • CAILLIER Hugo Influence of culture on negotiation - Competition style: (assertive and uncooperative) This style is used by people that are just interested in meeting their own needswithout taking care of what the other want. You will adopt a competitive style whenyou are trying to defend some point you are sure is correct or when you are trying towin. - Accommodation style (unassertive and cooperative) The accommodating style is the opposite of the competing style. When adoptingthis style, the person will forget about trying to fulfill his own needs in order to focusentirely on the other’s needs. He will agree to do a sacrifice about it. Charity is the mostknown example of accommodation. You can also observe this kind of style whensomeone obeys to another person without wanting it really. - Collaboration style (assertive and cooperative) When collaborating, both parts are working together in order to reach theobjective of both. The process to reach this outcome is to explain the problem of eachpart, explore all the solutions that exist and find an alternative way to find anagreement. The exploration part of the aim why the other part does not agree is the keyto resolve this problem. The main point to think about in order to reach an agreement inthis case is the creativeness. - Compromise style (midway between assertive and cooperative) This style is the one that is in the middle of the model, so it uses a small amountof all the other negotiation style. In this case you will try to find a mutually acceptablesolution that satisfies the most both parties. But in this case, both parties will have to dosome sacrifices in order to both fit in the Zone of Potential Agreement (ZOPA).June-December 2011 – IESEG School of Management 33
    • CAILLIER Hugo Influence of culture on negotiation 2.1.5.2 Horst Paul R. Horst is a Lieutenant Colonel at the United States Air Force. Asgraduation requirements, he wrote a research report on the link between culture andnegotiation. In his research, he first describes culture and how it impact the humanbeing, then negotiation and in the last part, how culture impact negotiation. Aboutculture, Horst (2007) agreed with Cohen (1997) to say that “culture is societal (notindividualistic), acquired (not genetic) and his attributes cover the entire array of sociallife”. The first attribute means that a person depends on the society around him, on the“clan” he is part of. The second attributes is more linked to where and how the personwill live his life. So lifestyle in general (school, family, friends and work) is creatingthe acquired attribute of culture. And the last of the three attributes is given byintangibles that are not wrote or visible as relationships, etiquettes, conventions…Usingthe figure above: three levels of uniqueness in human mental programming of Hofstede(1997), Horst explain that human nature is inherited, while culture is learned andpersonality is both learned and inherited. This explains better why two countries thatare separated by thousands of kilometres and an ocean can develop a very differentculture. So culture is influenced by the collective pressure of the society you live in.June-December 2011 – IESEG School of Management 34
    • CAILLIER Hugo Influence of culture on negotiation Figure 5: Three levels of uniqueness in Human Mental Programming – Hofstede Source: Horst - Cross-Cultural Negotiations – 2007 Horst defines negotiation as follow: “when two or more parties reach a positionwhere their interests or values come in conflict with one another”. He explains that tohim, it exists several ways to resolve this conflict: the first case is when a party is morepowerful than the other one, then when both party are equal in power (here we accedeto a pure negotiation case). The use of mediator or arbitrator can be used as a facilitatorfor resolving the conflict. Then he gave an overview of the three negotiation styles that are used most ofthe time: competitive, collaborative and concession. The style used will also depend ofthe balance of power during the negotiation. Negotiation is a skill and not a knowledgearea. Negotiators are the key actors in negotiation. The five attributes given tonegotiators by Rubin (2002) are: flexibility, sensitive to social clue, inventiveness,tenacious and patience. Three main skills are used among the phases of the negotiationJune-December 2011 – IESEG School of Management 35
    • CAILLIER Hugo Influence of culture on negotiation(given here at the number of 3): Procedural interests, substantive interests andpsychological interests. Those skills are used in all parts without distinction dependingon how the negotiation is going on and the nature of the negotiators. In the last part, Horst gave an explanation about how culture and negotiation arecrossed. The relation between both aspects will be done toward the four main aspects ofnegotiation: actors, structure, strategy and process. The culture will play a major role onhow is perceived the other party by the actors of the negotiation. The structure of thenegotiation will also be affected by culture for example on the size of the team chose bythe party. A party that come from a collectivist culture may be more efficient than ateam from an individualistic country. The strategy can be different within differentcultures. For example, a person that comes from a country where they are more often inconfrontational style in every day’s life will be more able to choose a hard bargainingstyle during negotiation. Culture also plays a big part during the negotiation process“the actual interaction between parties” (Faure 2002). A party with a highindividualistic index will speak less than a collectivist one. The way they communicatein an individualistic society will also be more direct and shorter. Then Horst useSalacuse’s (1998) work to see how culture affects 10 general negotiation factors. AsHofstede’s work, we will review a specific academic paper about this work as it is amain research in this field. Then, Horst looks for how to develop a strategy for a crosscultural negotiation. He asked the question if cultural difference could be a drivinginfluence during a negotiation. He said that the preparation step is the first and thebiggest step for a negotiator into a cross-cultural negotiation. Then four strategies canbe used: adhering, avoiding/contending, adapting and advancing in order to get apositive outcome during this kind of negotiation. It says in this paper that strategy ofJune-December 2011 – IESEG School of Management 36
    • CAILLIER Hugo Influence of culture on negotiationboth party will evolved depending on the level of ability and willingness to adapt(AWA). 2.1.5.3 Andrew Boughton Andrew Boughton (2009) is a contemporaneous businessman that worked asnegotiators for companies all around the world. He also did a big research about culturethat has been done among more than 1500 businesspeople in 21 cultures. The researchfound that it exists two kind of prejudges that are normally done about culture: regionalgeneralization and that Japan has “normal” negotiation strategy. Those two affirmationsare most of the time wrong. In fact, some culture leaving very close as Japan and SouthKorea are, can use the opposite negotiation strategy. And the second one is that Japan isall the time in the extreme of each criterion used to describe their strategy. It is alsogiven that cultural differences create problem on four variables of the actors as given byBoughton: - “Language - Nonverbal behaviors - Values - Thinking and decision-making process.” Also taking into account that the first problem listed here is the one that will bethe more obvious and the last one the harder to determine. The language is the most obvious because you can know or notice that you donot speak the same language at first sight. Something important here is that Boughtonexplains that “exact translations in international interactions are a goal almost neverJune-December 2011 – IESEG School of Management 37
    • CAILLIER Hugo Influence of culture on negotiationattained”. And that the case when they do have to traduce but the language problem canalso be faced in case of an American with a native speaker from England will speak thesame language but there is still a risk of misunderstanding between them. That is why you can easily imagine negotiation strategy based on the language.The example given here is a Russian that speaks English but still use an interpreter tonegotiate with an American. This way, when he speaks, the attention of the American isfocused on the interpreter and cannot see the non-verbal behaviors of the Russian. Andwhen it is the turn of the American to speak, the Russian can focus on the non-verbalcommunication of the American and then get another translation of what he heard tovalidate the answer he understood on the first time. It is also given that it is lessfrequent to find an American that speaks another language so the other party during thenegotiation might get an advantage from this. About nonverbal behaviour, all the researches take us to the same results:nonverbal communication is crucial in any exchange process as negotiation is or otherkind of communication. The research used here show that the difference between twocultures is higher when you compare both nonverbal and the verbal content of thenegotiation. Then follow a description of the behaviour of the 15 cultural groups thatwere studied. We will only focus on both Mexican and French behaviour as we choseto work on those two even if other cultures are very interesting in the way they behaveas Japan for example.France: They have the most aggressive style among all the culture that was studied inthis survey with a very high level of threats. Another specification about French that wefind in lots of survey is that they are very used to interrupt the other party and use a lotthe “no”. They were using a competing style in most of the casesJune-December 2011 – IESEG School of Management 38
    • CAILLIER Hugo Influence of culture on negotiationMexico: The biggest point that was noticed about Mexicans is that this culture is lots oftime victim of regional generalization even if, at the end, Mexicans are very differentfrom other country of South-America or their Spanish cousins. Finally, Mexicanbehaviour is closer to the American negotiation behaviour than any other one. Theprefer negotiation styles of the Mexicans are the collaboration and accommodationstyles In another part, the paper talks about the influence of some managerial valueson the negotiations as objectivity, competitiveness, equality and punctuality. Thosevalues are most of the time used by Americans and can create an unfavourable situationfor any international negotiation. The book “getting to yes” (Ury, Fisher and Patton1991) is used here as a reference for all people that have to negotiate with Americans tounderstand what and how do they see the negotiation process. For example, the mostimportant for an American is the substance and the relationship whereas in othercountries, those two variables will be attached. Anyway, lots of ideas that have beenexplored in this book can be applied to other cultures. Then a study about a negotiation case applied to businessman show that inMexico, Japan and Korea, the buyer is seen as more powerful than the seller. Incontrary, Americans are seeing more often the buyer as powerful as the seller. Thisfinding is confirmed by the work of Hofstede that show that Americans scored thehighest score in the scale individualism. It also confirm the proverb “Just make themwait” when you are negotiating with Americans. In fact Americans is the culture thatvalue the more time whereas Japan value it totally differently and have not the feelingof losing time when they are negotiating as they are preparing a future relationship.June-December 2011 – IESEG School of Management 39
    • CAILLIER Hugo Influence of culture on negotiation About the decision-making process, it shows that eastern and western process isnot very compatible because in western countries, they use to separate the allnegotiation in several smaller tasks when Eastern countries prefer to negotiate thecontract as a whole. They will also take the negotiation time to create the relationshipas western will take this time to try to resolve the problem finding a good deal for bothparties. 2.1.6 Interpersonal communication 2.1.6.1 Tim Borchers Tim Borchers (1999) gave a good first description of what is interpersonalcommunication. To define it, they used a comparison method with all the other way ofcommunication. Interpersonal communication will be based on the study of how manypersons are involved in the communication process, they distance between them, thechannel they use to communicate and the feedback that will be gave by the receptor tothe emitter. Some particularities of this kind of communication are that it will not takethe relationship into consideration and that the interactants are physically present.Another way of describing interpersonal communication was gave by Nora C. Quebral(2001) calling it the developmental view and was first defined by her in 1972 as "The art and science of human communication linked to a societys planned transformation from a state of poverty to one of dynamic socio-economic growth that makes for greater equity and the larger unfolding of individual potential." Nora QuebralJune-December 2011 – IESEG School of Management 40
    • CAILLIER Hugo Influence of culture on negotiation The main function of interpersonal communication as described by Borchers isthe gain of knowledge about another person or matter. The more you collectinformation about a person, the better you will communicate with him. This theory iscalled Social Penetration and was created in 1973 by professors Taylor Dalmas andAltman Irwin in order to describe better the link between relationship and the outcomeof the communication process. There is three main ways of collecting informationabout your interlocutor: passively by working out the elements you observed during theinteraction, actively by observing another person talking with your interlocutor andfinally interactively by interacting directly with him. There is also to take into account the content message. In fact a same word canbe understood differently depending on the context, the way they are said, and themeaning in your own culture. The second variable that describes a message is therelationship message which defines how the message has been said. Those twocomponents are transmitted at the same time but will affect the way the message hasbeen understood. Then we have to describe the identity of the communicants. The firstcomponent of the identity is the role each person plays in the society. This will becompleted by “the face” that the person will show during public interactions. Andfinally we need to engage interpersonal communication in order to fulfill some needs.The professor William Schutz (1958) gave three main kinds of needs that will make usinteract with other people: - Inclusion: it is the need of creating his identity by interacting with other people; - Control: is the need of creating a certain leadership among other persons or of being managed by other for the persons that do not likeJune-December 2011 – IESEG School of Management 41
    • CAILLIER Hugo Influence of culture on negotiation being leaders. The group formation is the best way to see this kind of communication; - Affection: it represents the need of being accepted by others. Groups are also the best way for creating this kind of relationships. Figure 6 Knapp’s Relationship Model Source: http://gracescribbles.blogspot.com Then, come the time for relationship development that will be the main tool tomanage in order to get a positive outcome to the communication process. This phasehas been studied by Knap Mark (1984) in his relational stage model (above). Thismodel called Knap relationship model is composed of three main stages; each stage iscomposed of several steps coming from the initiating to the terminating step passing bymaintenance of the relationship. Self-disclosure is the best way to get more intimate with the other interlocutors.It is based on sharing information that other people should not know or discover bythem in a normal time. A good way of having a great overview about what others knowabout you, what you know about you is the Johari window done by Luft (1969).June-December 2011 – IESEG School of Management 42
    • CAILLIER Hugo Influence of culture on negotiation Table 3 Johari’s Window Source : http://www.abacon.com Self-disclosure has a primary function to gain information about the otherperson in order to predict the more as we can their thoughts and acts. This informationis normally given in exchange of the same type of information from your part: that isknown as a norm of reciprocity. This exchange of information will create a betterrelationship adding more trust into it. However, self-disclosure might be risky for bothparties. The first risk is that the person might not take the information as a good thingabout you; self-disclosure can be about matters that your interlocutor does not likeabout you. It can also be risky by the fact that the other person should use thisinformation to damage your reputation or the relationship by disclosing it to otherpersons. The last way is the fact that the self-disclosure can damage the relationship if itis done too early in the relationship process or if too much information is disclosed atthe same time.June-December 2011 – IESEG School of Management 43
    • CAILLIER Hugo Influence of culture on negotiation 2.1.6.2 Shanon Claude Shannon and Warren Weaver (1975) studied communication but as a verylarge theme. They started to base their work on the communication process betweenmachines and saw that it could be applied to human. So they define communication asall the process used by a spirit to influence another one using words, behaving but alsoall sort of human work (music, theatre, painting…). They defined three main problemsthat can be observed in the communication process and that can damage the quality ofit: - Technical problem This one describes the problems that are linked with the exactitude of the symbols that are used to transmit the message. This message can be written with character but can also be a sound (words or song). - Semantic problem The semantic problem describes the difference between the intention of the transmitter and the interpretation of the receiver. This misunderstanding might be hard to find or to detect because sometimes you can ask if the other person gets what you said, he can answer yes even if he did not have it. A good way to avoid that is to talk more with the other person about the same subject until being sure that you gave all the details or the other person gets it. - Efficiency problem The efficiency problem is the last level of problem that can be noticed because even if until here there was no problem, this one can change entirely the outcome of the communication. In fact it defines the success which with theJune-December 2011 – IESEG School of Management 44
    • CAILLIER Hugo Influence of culture on negotiation message that have been transmitted will make the receptor act as desired when the message was sent.The global model that Shannon designed is the one presented below: Figure 7 Shannon’s Model (1948) Source: http://davis.foulger.info/research/unifiedModelOfCommunication.htm In this model we can easily identify the main process of communication withthe interactants and the way the message will have to do from the source to thedestination. The easiest and shortest way to understand this model is to see how theemitter will transform the message in a signal that will be transmitted to the receiverthrough a communication’s canal and transformed again in a message to a destination.In this schema we can add the main elements of this research paper. The culture will betook most of the time as a noise source in the negotiation. That is where we are lookingfor a way to have it more than a facilitator than a barrier. And then during thetransmission of the message, the negotiation styles will take some part into the way theJune-December 2011 – IESEG School of Management 45
    • CAILLIER Hugo Influence of culture on negotiationmessage is sent and also how it is understood by the receiver. Then another researcher(Weiner, 1986) added a small contribution to the model of Shannon but that made themodel interactive. This contribution was the addition of the element “feedback” fromthe destination back to the information source. 2.1.7 LeadershipAdair John Adair (2005) is one of the referent persons in the leadership field. He wrotemore than 62 books about leadership and several academic papers with other searchers.In his work, Adair found a global model that describes the interactions between thethree mains functions of leadership. Those elements: task, individual and group arerepresented in three circles that overlap describing the interaction of each of the threefunctions on the other one. So if the individual is weak, it will affect the performance ofthe group to complete the task. Task Individual Group Figure 8 Action centered leadership model of Adair Source: www.learnmanagement2.comJune-December 2011 – IESEG School of Management 46
    • CAILLIER Hugo Influence of culture on negotiation So those three functions are described by the development of the individual, thebuilding and maintain of the group and the accomplishment of a task. This model helpsto understand the differences between management and leadership. Then a leader has 8main functions. The first one is to create SMART objective that are Specific,Measurable, Achievable, Realistic and timed constrained in order to establish a definedobjective. The second objective of a leader is the planning of the achievement of thistask. In order to achieve it, the leader must brief his team to get the adequateatmosphere. The need for control and evaluation among the team and the individuals isalso essential as it is a way of questioning the efficiency of the plan and the team. Thenthe motivation gave to the team is essential. In his book Effective Motivation, Adair(1987) found and described 8 different ways of motivating people. Here are the heightrules that are recommended to motivate your team: 1. “Be motivated yourself. 2. Select motivated people. 3. Treat each person as an individual. 4. Set realistic but challenging targets. 5. Understand that progress itself motivates. 6. Create a motivating environment. 7. Provide relevant rewards. 8. Recognise success.” Adair JohnJune-December 2011 – IESEG School of Management 47
    • CAILLIER Hugo Influence of culture on negotiation To conclude, Adair show that the leadership works as a whole and if onecomponent is failing, the all system will not work efficiently. So he highlighted theimportance of the team building and team enforcement. Some tools has then have beencreated to evaluate the leadership’s aptitude of each person such as the MBTI of MyersBriggs that is also used in the group dynamic theories and was first published by Jungin 1923. We can briefly define it as the ways that an individual will use to have the helpor support of other person in order to accomplish a common work. 2.2 Limitation of the literature review This literature review has been made using the papers that were the most close tothe topics we will study in this research. But anyway, they are not explaining exactlywhat we are looking for. That is the main point of conducting this research, to applymore precisely the theory that has been made about culture to France and Mexico andto confirm the statements that have been made about those cultures. Then, the studiesthat have been made about French or Mexican culture nearly never take into accountthe point of view of the other country. In fact, most of the time, the paper is focused ina specific culture but from the point of view of the author or with a neutral mind-set.What will be added here is to understand the Mexican and French cultures but fromFrench point of view. In continuation with this idea, we will see how this one-way pointof view can also be a barrier for intercultural negotiations. Another point that limit the literature review is the fact that the references that welooked for is very limited among the entire amount of papers published. This will alsooblige us to pick up some papers that might not be the most relevant for the study of aspecific topic. We can also ask ourselves about the obsolescence of those works. Infact, several documents are used as references for specific topic. For example, the workJune-December 2011 – IESEG School of Management 48
    • CAILLIER Hugo Influence of culture on negotiationof Hofstede (1997) has been used as reference by several searchers because he is theone that worked the most on this subject but it is possible that if someone else do thesame amount of work on the same topic find something totally different from whatHofstede found. So it is possible that the tools used here to start to answer the researchare not the most appropriate and might have taken the propositions in a bad path. Wecould also add specific limitations about some of the topics that have been approached.For example, in the last part, we said that leadership is essential for the wellness of agroup. But in an article, Dr. Spates Jennifer (2008) explained her theory aboutcommitted sardines that are all going in the same direction, without touching the otherssardines of the shoal. So the reasons of this might be also by the total lack of leadershipinside this organisation. If one sardine had even a little bit of leadership, this mightcreate some disturbances in the smooth functioning of a shoal.June-December 2011 – IESEG School of Management 49
    • CAILLIER Hugo Influence of culture on negotiation3 Research methodology The research methodology explain what research design we chosen and the reasonswe chose this one and not another type. It will also present the hypotheses that will betested by the method and the kind of data that have been chose: quantitative orqualitative. 3.1 Research design 3.1.1 Design The research has been established to understand why variables such as time,leadership, and group dynamic do can be hurtful to a negotiation and how should it bemanaged. As said De Vaus (2001), the aim of an explanatory research is to answer thequestion: “Why is it going on?” So at the end of the research we will have to find thecausal explanations of why those variables are hurting the negotiations between Franceand Mexico. Causal explanations are a way of showing how the phenomenon“intercultural negotiations” is affected by the factors “time, leadership, group dynamic,Frencheness”. So in first sight, we will predict that culture effectively affect thenegotiation process and outcome. Then we have to find the correlation between theculture and the outcome of the negotiation. This correlation is given by the differentfactors that made the essence of culture. Then we can finally find the cause of thiseffect that is not coincidental. Here the cause might be the essential differences betweenboth cultures that are negotiating together. The cause here studied is a probabilistic one.Wesley Salmon (1980) explained that the probabilistic causality is opposed to thedeterministically causality. The last one is the description of the case where inevitably,a variable X will affect the same way a variable Y. But here, we cannot state that eachtime an international negotiation take place, the outcome will be bad because of culture.June-December 2011 – IESEG School of Management 50
    • CAILLIER Hugo Influence of culture on negotiationSometimes the culture might improve the outcome. So we are in the second case wherea fact X might affect a variable Y as it already happened this way before. The theory that has been chose here is giving us the different propositions thatwill be tested. So the theory testing approach has been chose in order to test that in fact,that some cultural aspects affects international negotiation. The different propositionshave been found using a deductive approach from the main research question. In the figure below, we can understand how does this work has been establishedin order to find the propositions, the way information will be collected, the collection ofthe data, the analysis of those and the comparison between the propositions and theresults of the analysis with a final feedback on the theory itself that was the startingpoint of this work. Figure 9 The logic of the research process Source: David de Vaus Research design in social research (1980)June-December 2011 – IESEG School of Management 51
    • CAILLIER Hugo Influence of culture on negotiation Then came the time to choose the type of research we should conduce in orderto answer the best as we can to this theory and propositions. Here two options exists;quantitative or qualitative research. Quantitative research are using a bigger sample andasking closed question. In this case, the aim was to gather information that might benew for the subject. Furthermore, qualitative research has the possibility to bedescriptive that is a very important point. This is the best way to describe effectively aperson, an event or a situation (Robson 2002). Figure 7 Qualitative VS Quantitative Research Source: Abdur-Rahman 2010June-December 2011 – IESEG School of Management 52
    • CAILLIER Hugo Influence of culture on negotiation 3.1.2 Propositions and Model Thanks to the literature review, several components of culture have beenhighlighted between the entire set that constitute the culture. The works of Hofstede(2001) and Salacuse (1998) have been the ones that were the more useful in order toidentify those components. The results of those works can be found in the annexe at theend of this work (appendix 1 and 2). Then three main propositions that are aboutFrench culture, Mexican culture and the confrontation of both cultures and the effect onthe negotiation style adopted. Then each proposition will be detailed in two morepropositions that will focus on specific variables of each culture.Proposition A: The French culture is based on group dynamic, bureaucracy andFrencheness. • P1a French will refer to a team work expecting each person of the team to bring something before and during the negotiation. So the first proposition is about the French culture. The sub-proposition is aboutunderstanding how is managed the team work in a French team and what does thatimplies to each of the coworkers. • P2a French will follow their home rules in order to achieve the signature of the contract. The second proposition of the French culture is a little bit more complex. In factthe French are very proud of their culture. This “Frencheness” combined with the usualbureaucracy of French might be a big barrier for countries as Mexico that are more usedto negotiate in general because a bureaucratic state will tend to have a specific person incharge of each area (Fisher 1980).June-December 2011 – IESEG School of Management 53
    • CAILLIER Hugo Influence of culture on negotiationProposition B: Mexican’s culture refers a lot to leadership, time and relationship. The proposition B deals with the Mexican’ culture specificity. In deed we justsaw in the literature review that this country is collectivist and that give importance tothe relations between his citizens and also to the hierarchy. The time also plays a majorplace in this culture as it is a variable that can easily be managed by everybody. • P1b Mexican prefer to refer to one person that will take the main decisions and will conduct the negotiation As Dickson (2003) said, “directive leadership only had positives outcomes interms of satisfaction and commitment in Mexico”. This is due in fact with a high powerdistance and quit high Uncertainty avoidance that will cause people to trust in theirchief as they think they are the more qualified to deal with the problem they are facing. • P2b:Mexican use time as a tool to create a better relationship between the two negotiators As we saw on the literature review, all the searchers accord to say that time inMexico might be the most important tool in order to improve the outcome. The timemight be used directly as to get some more time to think for an offer for example. But itcan also be managed as a way of upgrading the relationship by having a longer periodof interaction with your business partner.Proposition C: The confrontation of the cultural differences will create anegotiation style proper to each culture. In order to analyze a negotiation, we have to understand better both teams’culture and habits and also the way they negotiate. We make a proposition that culturehas a direct effect on negotiation style. Salacuse (1998) found at least ten ways inJune-December 2011 – IESEG School of Management 54
    • CAILLIER Hugo Influence of culture on negotiationwhich the negotiation style will be different among the cultures. If a country is pushingtoo much in order to reach an agreement, the other country might feel that it will not beenough in order to get a good and trustable relationship. That is for example why thewell-known company Enron lost a huge contract because the negotiation style ofAmerican was too pushy for Indians. • P1c: The Mexican team will try to create a good relationship with one person to negotiate with him using an accommodation style. Mexican will try to avoid as much as they can the conflict. As we saw on theliterature review, this will be traduced in negotiation by the way they use time to reportthe taking of decision to later. It will be also observed in the words they use, like“maybe” or “we will see”. (Katz 2006). • P2c: The French team will feel under pressure thinking Mexican are using stratagem with time and will use a competition style. The last proposition is about the way the French will perceive the negotiation.As their level of Frencheness is very high, they might get uncomfortable. As French arevery used to do the things the way they want, they might feel insulted or hurt whenMexicans use some basic tool as time to get more time to though about the subject or toconsult the other team members. On the following figure, the research question, propositions and main researchdesign is represented as a conceptual model. This conceptual model starts with theresearch question. This research question will need the qualitative research in order toanswer the six propositions and finally draw a global conclusion about how cultureaffects intercultural negotiations.June-December 2011 – IESEG School of Management 55
    • CAILLIER Hugo Influence of culture on negotiation Research question Sample: French B2B companyies Perception on F/M Perceived differences M/F negotiation between F/M andFrench culture Mexican culture behaviour depending potential differences on Pa and Pb opp/threat P1a P1b P1c=P1a+P1bGroup Dynamic Leadership Accomodation style P2a P2b P2c=P2a+P2b Frencheness/rules Time Competition Style Figure 11 Theorical Research Model 3.2 Research methodology 3.2.1 Research procedures How? The research procedure chosen in this work is the semi structured in depth interviews. So the first element of this research procedure is the interview. We chose interview because they are the best way to have exploratory and qualitative answers. This tool is the best way in order to have open answers that will give more components of the cultural differences that exists in international negotiation. However, the June-December 2011 – IESEG School of Management 56
    • CAILLIER Hugo Influence of culture on negotiationinterviews will be semi structured in order to stick with the main research question andidentify the details of the main variables time, leadership…Who? In order to answer the interviews, we had to choose a sample. A sample isdefined as a part of a group that will be representative of a whole. The sample chosenhere was at first B2B companies from both countries: Mexico and France. Eachcompany had to be negotiating with the other one about selling, or contracts. During theresearch of the Mexican companies negotiating with French ones, we quickly saw thatfindings those contacts were very hard to found. So we definitely chose to onlyinterview French businessman doing business with Mexican in SME’s because theywere more accessible than negotiators of international groups. But anyway, the resultscan be applied to all kinds of cultural interactions that will be done between those twocountries.When? The available time to do those interviews was very limited. And as there wasnot enough time to travel to interview each of the interviewee in person; another wayhad to be found explained in the next part. The interviews have been made morespecifically during the second part of the semester when the methodology was moredefined. This lack of time was also a reason for not interviewing Mexicansbusinessman.Where? So as it was hard because of time and space restrictions to do all the interviewsin person, it has been chose to do them via video-conferences. Using this method, theJune-December 2011 – IESEG School of Management 57
    • CAILLIER Hugo Influence of culture on negotiationinterviews could not be more than 40 minutes because it is harder to concentrate lots oftime in front of a laptop and also business man have overbooked schedule. 3.2.2 Design of the interviews The interviews will be designed following the propositions that have been made.Each proposition will be the source for two questions about this subject. The questionswill be answered based on the experience of the businessman that knows aboutintercultural negotiations. Some basics information will be collected at the start of each interview. Thatinformation is interesting in term of statistics to understand the demography of thesample. The information about the company will be asked in order to understand betterthe history of the company. And information about the person will be collected tounderstand better what she is used to do in term of international negotiation and alsohow much time the person spent in the company and how much she has beeninfluenced by the corporate culture. Some general information will also be asked asgender, age… This information sheet can be found in appendix 3. 3.2.2.1 First question of the interview:What makes you so French? The first question that will be asked during the interview will be very straight. Itwill be useful in term of determining how the French perceive themselves. This will beneeded in order to determine the level of Frencheness of each interviewee. Theparticularity of this question is to get answers as wide as possible to get the largestpanel of how French describes their own culture.June-December 2011 – IESEG School of Management 58
    • CAILLIER Hugo Influence of culture on negotiation 3.2.2.2 Questions about the first proposition: For the first proposition, it has been choose to ask about the group dynamic, thebureaucracy and the Frencheness. This proposition is based on understanding theFrench culture as it is seen by French.What is your preparation process before negotiating? In this question, we expect to collect more information about the way thebusinessmen prepare themselves for the negotiation. By giving details about the dresscode, the documentation they prepare, the language they learn, it will permit us toobserve the way French want to be perceived by Mexican. But this will also be a way toconfirm that having a high level of uncertainty avoidance (Hofstede 2001); French donot want to be caught short by Mexican during the negotiation and want to give a goodfirst impression.How the number of person in your team can affect the way you negotiate? This question is relative to utility of the group dynamic for French innegotiation. In order to confirm or refute the theory of Salacuse (1998) that Frenchbusinessman are not used to follow one leader (appendix 2).What big differences you can point between the negotiation process with French orwith Mexicans? For French, the negotiation process is very formal and should take you to thesignature of the contract. So in order to do so, they might follow some agenda forexample. For Mexican, the negotiation process is more based on the way to get a goodrelationship with the other team. So it should be interesting to understand how Frenchsee the interaction with another culture when they are used to negotiate with French.June-December 2011 – IESEG School of Management 59
    • CAILLIER Hugo Influence of culture on negotiationWhat kind of stratagem you use to make the Mexican team take a decision faster? The point here is to get how French will adapt their negotiation style in order toget a good income to the negotiation. The technics used might be focused on theirproper way of negotiation or might be using the weaknesses of the Mexican style. Forexample, as they now that time is an important asset for Mexican, do they will try tomake the meetings longer that what they should normally do with French? Or do theywill put the other team under pressure of not having a good relationship if they cannotaccess the information they need? 3.2.2.3 Questions about the second proposition: The second proposition will be tested by asking question about their point ofview on time, relationship and leadership. This proposition is based on the French pointof view on Mexican’s culture.Did you notice any differences in the Mexican Negotiating style when you were in teamor alone? The aim of this question is to see how the Mexican will perceive the negotiationwhile they are facing a single person or an entire group. In fact as Mexican are grouporiented, they will prefer negotiating in group but if the other part come in team, theymight feel a threat about that. So we will try to understand the utility of coming ingroup or alone in a negotiation. This will be also a way of understanding if Mexicanprefer negotiating with a person that knows more about the specific matter, or a personthat is in charge of the project even if she is not the more skilled about the specificpoint that will be treated or finally if they should use a negotiator to do the job.Which kind of relationship does the Mexican team has between his members?June-December 2011 – IESEG School of Management 60
    • CAILLIER Hugo Influence of culture on negotiation The Mexicans prefer to negotiate in group but the important point is to see howthey interact between themselves. We will have more information about how does aMexican team will organise his negotiation. It will help us to observe if the hierarchy isoverriding the skills of another person. Also the time of speaks of each person might bean interesting tool in order to understand better the interactions that exists inside aMexican team.What do you think is the main priority for a Mexican team: relationship or the contractitself? This question will need to be more detailed while they answer it in order to get abetter understanding in how the Mexican focus their attention on the relationship andalso why the relationship seems to be that important for them. This way, we will beable to test the proposition of Salacuse (1998) which states that Mexican are notinterested that much in just sealing the deal.How did you created your relationship with the Mexican team and when? This question asks the interviewee to give information about practical exampleof negotiation that already happened in the past. The question will be the best way tosee how Mexican use jointly the time and the relationship as tools in order to increasethe outcome of the negotiation for them. It will also explain which moment Mexicanprefers to create the relationship: if it is during the first time they met or during dinnerand so on.June-December 2011 – IESEG School of Management 61
    • CAILLIER Hugo Influence of culture on negotiation 3.2.2.4 Questions about the third proposition: The third proposition is made by crossing the first ones. So the point of this partof the interview will be to understand how crossing some variables of culture can createdifferent negotiation styles.Did you felt that the negotiation went well for you most of the time? This first question will look for the reasons why French negotiators feel that thenegotiation went well for them. This might be due to the fact that Mexican use anaccommodation style in order to avoid more conflict and will be read to give a little bitin order to close the deal. We will also understand the way they used to quantify theoutcome of the negotiation and what are the reasons for this good ongoing.What kind of relation you noticed between the outcome of the negotiation and therelationship with the other team? We could think that if the Mexican have a good relationship with the Frenchteam, they will be able to negotiate better and will be open to give a little bit more thanwith someone you do not trust or do not feel confident with. This also will beinteresting to see how they can measure it and how they can illustrate it.When you feel under pressure or insecure about the outcome, how do you react andwhich negotiation style you adopt? This part will focus on the negotiation style that will be adopted depending onhow the negotiation process is going. The French team might adopt one of thefollowing negotiation styles: avoidance, accommodation, compromise, collaborationand competition in order to react in the most appropriate way.June-December 2011 – IESEG School of Management 62
    • CAILLIER Hugo Influence of culture on negotiationDid you regret some past actions in your last negotiation seeing that it was not usefulto act like this? And what did you do about it? When the Mexicans are using basic technics as time in order to negotiate, theFrench might feel in danger during the negotiation as they are not managing all thevariables. So in order to not get hurt, French might be a little bit harder on thenegotiation or sometimes rude. This might cause to severely damage the relationshipwith the Mexican. So in order to see if they did it on purpose or not, asking thempassively to think about their actions during the negotiation will give us information onthe negotiation style they used and on the one they should have used instead. In order to collect qualitative data, it exist other kinds of data collection thatshould have been used but the point is that each one of those was not as appropriated tothis research. Example of other kinds of collection data methods: - Survey - Focus group - Small role play 3.2.3 Data analysis The data analysis technic chosen to study the answers of the interviews is theconstant comparison or grounded theory. So the first step in this technic is to listen tothe recorded interviews. Meanwhile the interviews are played, some notes will be takento resume and keep the main words and ideas. This will permit to reduce the volume ofinformation that has to be processed. Then, the third step of the grounded theory is theJune-December 2011 – IESEG School of Management 63
    • CAILLIER Hugo Influence of culture on negotiationcoding itself. The coding is a process in which the most important words of thedocument (nearly 100 words) will be organised by being grouped by common points. Inorder to earn time, this will be done by hand but it is also possible to use dedicatedsoftware as QSR Nvivo. Then an axial coding will be done in order to obtain more orless 10 groups of words that create section. The last step of the coding process is thecategorization of the groups into 3 mains parts that should recover the 3 sub-questionswe found. Then some explanations about the findings will be made for each sub-questions and each big topic of this research. 3.2.4 Limitation of the research methodology However this methodology is the best we can apply to this research with thisamount of resources (economical and contacts in the business word), we can find somelimits to it. The first limit is the quantity of person interviewed. In fact we were able tointerview only 11 persons that are very few comparing with other studies that havebeen made about culture. A second limitation that we can add is that the intervieweeswere only French. In fact, as it was nearly impossible to find some Mexican businessman negotiating with French ones, we had to restrain the research to only the Frenchpoint of view about the French and Mexican culture. This restriction might damage theresearch by having only one side of the problem. This research should have usedseveral months or years in order to be more adequate but as there is no limit to thatexpansion of interviewees, it has to be finite number and a realistic one too. Another restriction is that this research only focuses on the effect of culture onthe negotiation. However, in each culture, people are very different one from eachother. For example in Mexico, we can differentiate a lot the northern Mexican whichculture might be closest to the one of the Americans with the indigenous that live in theJune-December 2011 – IESEG School of Management 64
    • CAILLIER Hugo Influence of culture on negotiationmountains of centre Mexico or with the Mexicans of Mexico city. So we should takethose cultural differences more into account even if it will be very hard to define thesmallest cluster for each culture in each country. The difference between two persons inthe same group is also a problem because one person might be different from hisneighbour by his history, his work and his family for example. So we should also takeinto account the person itself as a variable of the negotiation process as each point ofculture is. Then other limits should be added to the methodology. In fact the diversity isone quite important. For example, the diversity of the interviewee is very important. Inorder to have the most homogenous sample possible, we should have taken intervieweefrom all kinds of fields and from different ages, sexes and so on. This way, theanswered we should have collected might have been more varied and therefore moreprecise. The variables that have been taken into account as component of the culturehave also been restricted in order to study them better. In fact, after the literature reviewwe saw that it exists an infinite number of components so we had to choose the onesthat seemed the most appropriate to this research but we could not know if they werethe best we could choose.June-December 2011 – IESEG School of Management 65
    • CAILLIER Hugo Influence of culture on negotiation4 Findings 4.1 Introduction This part of the research is dedicated to the review of the data that have beencollected during the interviews. We will firstly see some statistics of the sample of the11 person interviewed. We will highlight the fact that the interviewees are linked withnegotiation but are not all the time professional negotiators; they might just sometimesnegotiate contract or prices in their professional life in order to be part of the sample.Then the findings will be managed in order to pull out the important information foreach important part: Time, relationship, group dynamic, and they will be finallysummarized in the last part. All the interviews have been numbered from 1 to 11 andthe information page about each can be found in appendix (4 to 14). While using thephrases used by the interviewees, we will only keep the most relevant one in case twopersons said the same think in two different ways. 4.2 Descriptive statisticsAge and gender The sample used here has been very large in order of age. In fact the youngest is23 years old and the oldest is 56. But what we can notice here is that the person thatworked with Mexican companies is generally old. The average age of the interviewee is37 years old, and only few people interviewed were young and include one of them wasstill a student and was working for the company at the same time. We can understandthat the companies prefer people that have more experience and knowledge about theMexican culture as the negotiation is a matter of skills more than knowledge.June-December 2011 – IESEG School of Management 66
    • CAILLIER Hugo Influence of culture on negotiation Age 60 50 40 30 20 Age 10 0 Figure 12 Age of the interviewee About gender, we interviewed only few women. This might be due to severalfacts. First of all, the men do not like to negotiate with a woman alone. One interviewee(N°7) said that she had to come with a man by her side in order to be taken in serious.This can be verified with the high level of masculinity of Mexico in Hofstede’s work.But on the other hand women seems to be better negotiators than men (Camp 2002) sowe should ask ourselves why are they are not more present in business negotiation? Gender Woman Man Figure 83 Gender repartitionJune-December 2011 – IESEG School of Management 67
    • CAILLIER Hugo Influence of culture on negotiationExperience of the interviewee and age of the company With a 3 years average, the people interviewed are in their company since lotsof time. Knowing that the conjuncture is very hard nowadays, it seems that people thatare working in other countries have less problems to stay in their job as the one thathave only few time in the company is because they just started to work so it is normalthat they are not in the company since lots of time. The benefit of a person that isworking a long time in the company will be that they have more expertise about thecompany. In fact they will be more immerse in the company’s culture and will alsounderstand and know the long term strategy of the company. Time in the company 7 6 5 4 3 Time in the company 2 1 0 Figure 14 Time spent as employeeSector of activityAs all the people that have been interviewed were not exactly professional negotiators,their sectors of activity will be various. The high level of interviewee in the educationsector can be explained by the fact that the author of this research had his main contactsin this field so used them in order to obtain interviews.June-December 2011 – IESEG School of Management 68
    • CAILLIER Hugo Influence of culture on negotiation Type of sector 3,5 3 2,5 2 1,5 1 Type of sector 0,5 0 Figure 15 Repartition of the sectors of activityOther dataOther data have been collected before starting the interviews but those cannot be usedas references for several reasons. The number of employees is not representative of theall panel because in most of the case, the person interviewed was working on smallercluster than the all company. We can take as example the university in the interviewnumber 2 that count more than 22 000 students but the group were he was working wasonly composed of 4 people. The turnover of the company was not known by lots of person as they were notdirectly concerned by this kind of information inside the company. And for the few thatanswered this question, the turnover of the company was given in Mexican Pesos andcannot reflect the importance or the size of the company.Additional information that has been asked is where the interviewees workedmeanwhile they were negotiating with Mexican. It appeared that they all worked in theJune-December 2011 – IESEG School of Management 69
    • CAILLIER Hugo Influence of culture on negotiationthree main towns of Mexico: Guadalajara, Monterrey and Mexico City. It seems normalas those cities are the one that are the most growing economies in Mexico. 4.3 The findings 4.3.1 Cultural differences that affect negotiation In this part, we will see the French point of view on themselves but also whatthey think make the Mexican so different from us. We mainly founded the informationof this part in the answer of the first question: What make you so French? The objectiveis to get what are the main points for them that describe the best the French culture. Italso can be answered by seeing how do they describes the Mexican as the informationthey will give is the one that is extract from the differences between both cultures.France So in this first part, we will see the main adjectives that French used to describethemselves. “Une bonne réputation” Interviewee 1 “Respect des engagements” Interviewee 1 In fact, it appears clearly that French find themselves respecting the morale andethic. They use this criterion as an advantage with the Mexican that we should expectmaybe less centralized in the moral aspect. In fact, this point will come up again in thenext part when talking of the negotiation process itself or the relations that they havewith other in the personal or business life. “Travail de qualité” Interviewee 1 ”Organisés” Interviewee 9June-December 2011 – IESEG School of Management 70
    • CAILLIER Hugo Influence of culture on negotiation Those arguments show clearly that French take the organization of their livesand interactions and their image very seriously as they are the display of their publicbehavior. « Ma culture républicaine » Interviewee 6 « Stressés » Interviewee 9 This confirms that some French see some bad points in their culture that couldbe a problem for international negotiation. In the same time, if those persons are awareof this problem, they will be able to take care of it. The republican culture might not betaken as a threat for French but when it comes to an international outcome that can be asource of problems.Mexico So first of all, it is more than normal to observe cultural differences of Mexicanwhile observed by French. But this was not the aim of this research which was moreoriented on the way the culture impacts the negotiation. So here are three points thathave been identified in the interviews and that could create bad interactions between thetwo parts during the negotiation. “Le mexicain calcul mal, voire très mal, voire pas du tout” Interviewee 2 In fact for a French, it might not be believable to see that an adult is not capableof doing an sum, but it can really happens in Mexico as lots of adult never went toschool. So those mistakes can be in your advantage sometimes but you should reviewthe work most of the time just in case.June-December 2011 – IESEG School of Management 71
    • CAILLIER Hugo Influence of culture on negotiation “Les mexicains essayent toujours à lier leur sort à celui de la personne avec laquelle ils interagissent” Interviewee 4 This is a general fact in Mexico that is a lot linked to relationship. In fact asMexico is a very collectivist culture, they will try to all the time depend of a group.They apply the expression” the union make the force” that means if you get togetheryou are stronger. On another hand, this might also be the reason of the corruption thatexists in the country. As it says in the interview 2, the corruption is the main way ofregulation in the country. 4.3.2 Group dynamicGroup dynamic as a source of noise in the communication process The group dynamic has been defined as the way groups works and also the allprocess of the decision process that will be generated in the group. But at the sametime, the group has to be made up well in order to be efficient. If the group isdisorganised and the speeches not regulated, it can bring disturbance to the meeting. “Plus il y a de personne, plus il y a d’interactions, plus il est difficile de se faire entendre” Interviewee 11 “Plus de difficulté à communiquer à cause de la barrière de la langue” Interviewee 7 During a meeting, the negotiation can start with at least two persons and can goup to 8 or 10 people. So we have to understand how this number of interactants canaffect the negotiation. In this first point we can see that more people are present in thenegotiation, the hardest it will be to communicate clearly. In fact, while the negotiationis ongoing between two persons, you might have other person speaking at the sameJune-December 2011 – IESEG School of Management 72
    • CAILLIER Hugo Influence of culture on negotiationtime of a different matter, that will be took as a noise source (Shannon and Weaver1975).Group dynamic as a creation of an entity The aim of a group is to bring together several individual around a sameobjective. But the number of individual present in the group does not represent anend in itself. In fact, lots of interviewees noticed that once the group was created,the importance became the objective they were trying to achieve. “En groupe, les mexicains peuvent se montrer incroyablement soudés et peuvent décider de défendre les pires idées de l’un juste pour se prouver leur loyauté" Interviewee 2 "Je ne pense pas que le nombre soit un facteur décisif, mais plutôt la qualité des accompagnants" Interviewee 6 The group dynamic is also used by Mexican as a way of getting one and onlyvoice that will be more powerful than individual voices. So in order to be listened,Mexican will prefer to meet in groups and then explain themselves. This habit can beattributed to the collectivist culture of Mexican. In opposition, French negotiators feeltotally comfortable negotiating alone as they know they have enough collegebackground and enough confidence to do so.Group dynamic as a pressure tactic This part is based on the idioms "Unity is strength” and can be applied hereby the fact that if you come in group, you will have first of all the advantage of thenumber. You might be able to answer better to some attack that have been madeagainst your argumentation and be able to defend your team members. In thisJune-December 2011 – IESEG School of Management 73
    • CAILLIER Hugo Influence of culture on negotiationcase, the French have the choice to come in group or alone to negotiationdepending the feeling they have about the outcome and the relationship theyalready had with the other part. "Plus nous sommes nombreux de mon entreprise, meilleur sera la négociation car les mexicains sont vite impressionnés par le nombre de participants" Interviewee 8 "Ils peuvent se sentir agressés si les français sont en équipe" Interviewee 11 In the same time, as Mexican are collectivist they might feel the fear ofaffronting a group in the negotiation as they know the power it has. So one intervieweesaid that more they are representatives of his company the better outcome will be. Evenif we could think that there is a limit to this number depending of the number ofMexican they are facing for example. And as the Mexican will feel stressed by thissituation, they might not be very efficient in the negotiation process and might adopt amore aggressive style to counter the number of interactants they face.Group dynamic as a way to show the importance of the other part If a team arrive in number, in addition of being impressive, this might also showthe importance of the negotiation that will take place. As Mexicans are a collectivistculture, they might appreciate to see a group coming to a meeting more than only oneperson. “Il est important de bien se souvenir de qui est qui, son nom, son titre pour n’offenser personne (…) et prendre un temps pour chaque personne" Interviewee 5June-December 2011 – IESEG School of Management 74
    • CAILLIER Hugo Influence of culture on negotiation "Si une seule personne se déplace, cela peut avoir comme signification pour eux qu’ils ne sont pas importants pour nous" Interviewee 8 In the same way as Mexican recognize the group as a good way of showing theirpower; they also like to see the other part coming in group to show that they areimportant enough to make several people come to the meeting. But in the same time,French should be cautious to this group formation. They will have to take a time tospeak to each person forming the group of the other part and do not confuse their namesand titles. Here, the business cards play an essential role in order to not mix thepositions and names of your interlocutors. 4.3.3 Bureaucracy and FrenchenessBureaucracy as a barrier for negotiation Everybody knows the importance for French people. In fact, they are very used towrote down everything that have been decide and leave tracks of what have been doneor asked on paper. They also give lots of importance to those documents but they do nottake in consideration that other countries are more based on spoken words than paper asMexico is. “Ne pas venir préparé avec beaucoup de documents car cela impressionne” Interviewee 1 "Les mexicains sont moins organisés" Interviewee 1 "Le Mexique signe une multitude d’accords internationaux (comme peu de pays) mais n’en respecte que très peu" Interviewee 6June-December 2011 – IESEG School of Management 75
    • CAILLIER Hugo Influence of culture on negotiation For French, written contracts are sacred and once it is signed, you will have torespect all the terms. In Mexico, the spoken words are much more important than thewritten ones. In France, it is usual to use paper as support for everything, organization(lists, agenda), as recall (address, phone number). So when French will arrive inMexico and everything is oral, they will feel that they are less organized and will thinkthat they will forgot everything that have been said for example. So when French meetMexican, they will be prepared a lot using lots of documents that might impress theMexican team even if this is the normal way for French.Frencheness as a component of French businessmen The Frencheness strongly affect the French behavior. They are very respectfulof the rules and like to be treated reciprocally as they treated others. In those interviewswe saw that they are aware of the effects of their Frencheness on the negotiations. "C’est généralement informel et il faut savoir s’adapter" Interviewee 10 "Les mexicains ne supportent pas l’agressivité, même pas un ton de voix un peu fort" Interviewee 9 "Ils sont de plus peu enclin à en faire de même (s’adapter et valoriser les caractéristiques d’une culture étrangère) dans l’autre sens" Interviewee 6 The French are used to negotiate with other nationalities and cultures. But in thesame time, their Frencheness is something they cannot get off that easy. So duringnegotiations with Mexican, their Frencheness can appear without having thepossibilities of controlling it or even worth without notifying it. But sometimes, thismight be helpful. In fact, French will try to keep the meeting as professional as they canwhile the Mexican will try to make it more friendly so this counter balance the effect ofJune-December 2011 – IESEG School of Management 76
    • CAILLIER Hugo Influence of culture on negotiationfamiliarities in negotiation. And an interviewee explained that to him, it is the Frenchwhich is in Mexico that will have to make the effort of adapting himself to the localculture as the Mexican will not do that for the French. So the French will have tomanage his Frencheness (language and habits) in order to not hurt the relationship anduse it as an advantage for the negotiation. 4.3.4 LeadershipLack of leadership as a source of problem The lack of leadership in a team can be very tricky for a group. In this case, theMexicans should need a leader in order to organise their interactions and create aunique voice that should be more understandable for the other part. "Ils ont un bon esprit de groupe mais ont du mal à se mettre d’accord sur une solution cars ils ne s’écoutent pas" Interviewee 7 "Le manque de leader dans un groupe peu former une communauté qui peut être de mauvaise foi, et dans ce cas, il faut être capable de réponses violentes" Interviewee 9 Nearly all the interviewees ended with a conclusion: Mexican’s teams miss areal leader. During the negotiations, they all show that when there is no leader, thegroup formed will end by forming an uncontrollable voice. All the members of thegroup will have the same importance in their decisions and nobody will give the finaldecision as nobody want to be in charge of it. Sometimes, it can happen that you haveto change your negotiation style in order to be more aggressive because if not, thepower of the group will bury you in a submissive position.June-December 2011 – IESEG School of Management 77
    • CAILLIER Hugo Influence of culture on negotiationImportance of the leader in the team organization The leader plays a role of manager in the team even if he is not the person incharge of the negotiation. As it is useful to have a leader in the other team to whom youwill speak. But it is also very important to be or bring a leader with you to organizeyour team and your interventions during the negotiations in order to be efficient. "J’arrive toujours à discerner un leader dans le groupe mais les rôles sont mouvants" Interviewee 10 "Si vous parvenez à établir une bonne relation avec le responsable, les autres personne de l’équipe feront de même" Interviewee 7 "Montrer un peu de leadership permet de se faire respecter par sa propre équipe même si l’on n’est pas le responsable direct de l’équipe" Interviewee 7 So it has been clearly shown that for a French team, have a referent leader in theother team is more than important. This is also applicable in the other way, having aleader in the French team might be useful in order to make the negotiation moveforward and showing to the other team that you are also important as the othersmembers of your team are. As pointed up above, the fact of having a referent leader inthe team will create a better cohesion within the team and will permit to access betteroutcomes. Also the leader if respected by the team will be as an example for the othermembers. So if the leader get a good relationship and behave seriously, it might takethe other coworkers to do the same.June-December 2011 – IESEG School of Management 78
    • CAILLIER Hugo Influence of culture on negotiationLeader as a referent person As we saw two parts before, the lack of leadership is problematic for anegotiation with French. The explanation of this problem can be found in the factthat French team will always look for a person in charge of the group in order tobe sure to not loose time negotiating with under-qualified persons or persons thatwill not be able to take the final decision. « Je demande toujours validation auprès de la personne la plus importante auquel j’ai à faire » Interviewee 8 « Le chef décide et ordonne, les autres exécutent avec plus ou moins d’enthousiasme(…) même quand les ordres sont absurdes » Interviewee 11 The leader in the team plays an essential role. When a French team comes, it hasbeen accustomed to deal directly with the leader of the other team. But this might be anerror as the leader is not necessarily the most qualified person to deal about a specificmatter. But in Mexico, as nobody wants to get in trouble or create problems, they willall follow the orders of the leader, even if those orders are totally absurd. 4.3.5 TimeTime as a strength of French The time is one component that is including in the Frencheness. In fact, Frenchare very regarding of time respects. They will report all the decisions they have to maketo a specific time and will be very precise in defining it. “Confiance dans les délais” Interviewee 1June-December 2011 – IESEG School of Management 79
    • CAILLIER Hugo Influence of culture on negotiation "Je ne quitte jamais un rendez-vous sans avoir fixé une date à laquelle je les recontacte sans erreurs" Interviewee 10 In France, people are very reactive to time (Salacuse 1998) and it is veryimportant for them to respect it. So when compared with a culture as Mexico, it is hardto get custom to their way of using time. But in the other way, Mexican are very happyto have to negotiate with French as they know they will hand their reports on time andwill not be late as meetings. This is a variable that can be very important because if youarrive late to a meeting, this might be the first and last time it happens as therelationship can be injured forever.Time as a tool to improve the relationship The relationships are composed by several components, inside which ones timeis. More time you spend having a relationship with someone, the more deep therelation will be taking into account that there were repeated and regular interactionsbetween both parties. "Prendre son temps pour négocier, rien n’est pressé là-bas" Interviewee 3 "Lors d’un repas, le climat est le plus propice à la négociation" Interviewee 4 As we just said above, arriving on time at a meeting is a very good thing and isthe start for a good relationship because nobody likes to wait. But time can also be useddirectly in the relationship. In fact, the interviewees explained that more time you spentwith your partner, the stronger the relationship will be. And the time you chose in theday to negotiate or to meet with your partner will be also very important. For example,lots of interviewees talked about the meal time to meet, talk, and sometimes signJune-December 2011 – IESEG School of Management 80
    • CAILLIER Hugo Influence of culture on negotiationcontracts. This will also show that if a relation can be last long in your personal life,you will be trustable in order to have a long business relationship as signing renewablecontracts for example.Time as a problem to solve Comparing the French and the Mexican view of time, some problems appearedrelated to that component. In fact, as one culture see it as the best way to structure theday, and the other as a component of life among many others, some gaps appearfrequently. “On perd du temps sur les sujets de vie privée” Interviewee 4 "Ne pas laisser trainer les choses, (…) rappeler jusqu’à obtenir une réponse" Interviewee 10 "En allant droit au but, on risque de mettre son interlocuteur sous pression" Interviewee 10 The main problem that appears concerning the time is that the French are notpatient. In this case French are not very accommodators in order to resolve this. In factthey might be a little too pushy with the Mexicans in order to obtain what they want.The only thing is that by doing this, they might obtain the opposite reaction and mightalso hurt the relationship on a long term. 4.3.6 RelationshipRelationship as a fake representation of reality The relationship as view by Mexican is only based on several levels offriendships. For French, those kind of friendships at low levels are not appreciated asJune-December 2011 – IESEG School of Management 81
    • CAILLIER Hugo Influence of culture on negotiationthey are not significant and do not bring any benefit for neither of both parts. A realfriendship will only be created when the relationship brings pleasant and long termbenefits to the persons involved. “Se mettre au même niveau (tenue, langage…) que son interlocuteur" Interviewee 11 "Pour qu’un mexicain prenne une décision plus rapidement, je le flatte : cadeaux, faveur et considérations" Interviewee 2 "Il est peu fréquent que le français attache une réelle valeur à tel type d’amitié" Interviewee 2 In Mexico, the relationship is one of the main remarkable cultural aspects. Infact, you will create relation with everybody more or less deep depending on thefrequency you will see the person and his “utility” for you. The establishment of therelationship will be mainly done by finding some common points in Mexico as oppositeas in France where you will be looking for diversity in order to add value to therelationship. The main point of this is that if French want to negotiate in Mexico, hewill be the one that will have to adapt himself in order to fit in the other expectations.And as French do not have this kind of superfluous relationship, they do not care a lotabout it and might not invest enough time or money in improving it.Relationship as a negotiation tool The Mexican starts the relation by starting a friendship. So in other word, ifFrench want to negotiate with Mexican, they will have to do the same. Starting fromthis point we can say that as French accept this relationship in the only intention ofJune-December 2011 – IESEG School of Management 82
    • CAILLIER Hugo Influence of culture on negotiationmeeting the other part. From here, the relationship will be a negotiation tool as it is avariable that is took and managed to improve the outcome. "Je viens souvent avec un cadeau de France lié à la gastronomie (vin, paquet de bon biscuits) qui nous offre l’occasion de le partager ensemble autour d’une pause, d’un repas" Interviewee 10 "Le réseau est plus facile à tisser au Mexique" Interviewee 8 "L’excuse est importante, on demande pardon aux gens pour des actions passées afin de recommencer sur de bonnes bases" Interviewee 5 Even if French are not very familiar with this kind of relationship, after a shortperiod in Mexico, they quickly understood the importance of it. So in order to negotiatein better conditions, they use their Frencheness to get Mexican favors in the negotiationtable. So lots of them will use the gastronomy as a way of showing some Frenchspecialty or showing interest in Mexican dishes. Also showing interest in the Mexicanculture in general might be very helpful because they have lots of history and eachregion is different by his dances, tribes…Business relationship versus friend relationship The Mexicans has as habit to mix friendship with business relationship. Thismight create some uncomfortable situations between both cultures as the French are notused to combine business with private life. "Ils peuvent parfois nous faire perdre nos objectifs de vue à force de trop de familiarité" Interviewee 9 "On tutoie assez rapidement" Interviewee 5June-December 2011 – IESEG School of Management 83
    • CAILLIER Hugo Influence of culture on negotiation "Le mexicain mélange les sphères privées et professionnelles" Interviewee 6 It has been shown that in Mexico, the businessman has tendency to mix privateand professional life. It is in fact very common to make the business meeting informalcreating a friendship link between the interactants. In order to improve the relationship,you might be invited to diner at the house of the Mexican in charge of the negotiationorganization. Here the sentence: “mi casa es su casa” take his entire signification bymaking your guest feeling like home. The feeling of being like a friend to the other iswhat the Mexican is looking for in order to make the negotiation process the morepleasant it can be. 4.3.7 Negotiation StylesPreparation phase of French Using their habit of bureaucracy, the French will tend to get prepared well to thenegotiations taking notes and writing down his expectations about the futurenegotiations (figures, ideas, objectives…). “Fiche détaillée avec les renseignements et les objectifs à atteindre" Interviewee 10 "Recherche d’information sur la culture, le style de négociation et la personne à l’avance" Interviewee 11 The French has a real habit to get very prepared to the negotiation in advance.The fact that they will collect information about the other person is in fact a good thingin the way that it can help to improve the relationship and also the direct negotiation asyou might know what the other part prefer. Then they will also prepare a lot theJune-December 2011 – IESEG School of Management 84
    • CAILLIER Hugo Influence of culture on negotiationnegotiation itself by doing several calculations, setting objectives. This point mightdamage the negotiation because the Mexican might feel a little bit surprised and feelvulnerable as he will think he is not as well prepared as the French is.Mexican negotiation style familiar and accommodation style As we saw on the relationship part, the Mexicans use friendship as a negotiationstrategy in order to get closer to the other part. In the same way, this friendship willcreate in them a feeling of pain if they have to adopt an aggressive style with them asthey consider them as friends. To not face this situation, they will tend to adopt anaccommodation style. “Tout est oral, les engagement, les contrats…" Interviewee 1 "Les personnes rencontrées au travail deviennent amies" Interviewee 1 "Il n’y a pas d’agressivité" Interviewee 5 "Plus flou, il ne dit jamais les choses directement" Interviewee 6 The Mexican negotiation style is a very soft one. They will try to beaccommodating using several technics. The first one is to try to make the other partyour friend because you will be less likely to be hard on your friend than on yourenemy. The other technic will to be evasive about the topics they do not want to fightabout. The way to do this will be by reporting the problem to later or to answer in away they can still change their mind after. Anyway, it is hard to draw a very straightgeneral conclusion about the Mexican’s negotiation style as they are a little bit differentfrom the north to the south.June-December 2011 – IESEG School of Management 85
    • CAILLIER Hugo Influence of culture on negotiationFrench competition style Influenced by their Frencheness, the French will be likely to adopt a moreaggressive style as they value a lot time and cannot permit them to lose it by discussingfor a long time. "J’adopte un style agressif, j’essaye de gagner ce que j’avais en tête au départ" Interviewee 7 "J’évite les conflits car on risque de perdre le contrat, sa réputation et la confiance" Interviewee 1 The French are aggressive in negotiation comparing with Mexican. This is whatthe French said about themselves when facing Mexican’s negotiation team. This is alsoa good point to see that French are aware of this attribute when they are interacting withMexicans, this way they can try to control it and not let it damage the relationship andthey might lose the contract.Adaptation of the French to Mexican negotiation So in order to get the best outcome as they can, the French are able to take acritical look to their negotiation style and will try to adapt it to the Mexican’s one. Thiswill be more valued as the interviews showed that the Mexicans are not very apt tochange their habits in order to feet in the French standards. "J’ai appris à négocier ici au Mexique, je les comprends donc mieux que les français et obtient des meilleurs résultats" Interviewee 8 "Si je me sens sous pression, j’essaye de gagner du temps et ne pas céder aux pressions" Interviewee 6June-December 2011 – IESEG School of Management 86
    • CAILLIER Hugo Influence of culture on negotiation "Les français sont plus dure en négociation, les mexicains moins en règle" Interviewee 2 « Il faut trouver un équilibre entre accommodation, collaboration et agressivité » Interviewee 2 So the main objective for all the French who will be negotiating in Mexico willbe to adapt his words and behavior in order to get the best outcome he can. The firstthing in order to negotiate with a Mexican is to understand his culture by spending timein the country and sharing with locals. And it will be helpful to share maybe more ideaswith the other part as for example the prices your competitors to show that it isbeneficial to do business with for both of you. In order to adapt, the French might try tobe less centered in the rules (papers, agenda, contract…) and try to find a negotiationstyle that is closer to the win-win situation. 4.4 Summary of the findings After interviewing eleven French businessman that were negotiating in Mexico, wewere able to highlighted several main characteristics that describes the way cultureaffect negotiation. In order to take a retrospective look to the findings we made, we canobserve that we obtained seven main categories that are: - Cultural differences - Group dynamic - Bureaucracy and Frencheness - Leadership - Time - RelationshipJune-December 2011 – IESEG School of Management 87
    • CAILLIER Hugo Influence of culture on negotiation - Negotiation styles. Inside each category, we found sub-categories that were showing the effects ofrelationship for example on other variables. Each sub-category has been created by atleast three propositions that were confirming the importance of this criterion in thecultural negotiation. Those categories have all been studied previously in the literaturereview and now will be compared with the findings in the discussion part above.June-December 2011 – IESEG School of Management 88
    • CAILLIER Hugo Influence of culture on negotiation5 Discussion This part of the report will be focused on studying the relation between theliterature review and the findings. We will try to highlight the common points but alsoto see what differences have been noticed. 5.1 Cultural differences First of all, we can notice that the papers we can find about French and Mexican’sculture never compare them together. But the point is that a culture by itself will not bedamaging but when this culture is facing another one, here can appear some culturaldifferences that can create gaps between both behaviours or about understanding. Wecan also see that the cultural description of one country might be sometimes deviatedfrom the reality. In the Mexican case, some of the interviewees reported the case thatthe corruption was a very important outcome to take into account when doing businessin Mexico while none of the papers that have been published about the cultural aspectsof Mexican’s culture talk about this.France So there are obvious cultural differences between both cultures that affect deeplythe negotiation process and outcome. The French culture has been identified as a verymorale one. That will create a climate of trust in the professional relationship and mightmake the outcome better to both teams. If a team respect morale and ethic we can thinkthat the individual having this culture will behave rationally and receptively. Also the habit of the French of being organized can help in lots of case. Theyshould manage this task for both teams without showing that to the other. For examplethey should prepare the meeting’s agenda in a paper but should not take it to theJune-December 2011 – IESEG School of Management 89
    • CAILLIER Hugo Influence of culture on negotiationnegotiation table to not show the Mexican team they got prepared before thenegotiation started. French should also be aware that they have habits that could be annoying for othercultures. The indirect communication is very important and is more effective than directcommunication itself. So for example, they should not tone up their voice when angryand try to stay calm. They also should avoid talking about politics and religion in thiscountry as they are very catholic, completed with some ancestral practices.Mexico The French view of Mexican culture might seem pejorative but this is normal asthis research only took the French point of view. Mexican can have some troublescomputing during the negotiation or in every day’s life so French should take care of itand might complete those parts if possible and might check discreetly when Mexicando this kind of computations. In the professional word, that might injure therelationship if it is not done with tact. The second point that French can manage about the Mexican’s culture is their habitto attach their life and decisions with the others. In fact, coming from a collectivistculture but that might be dangerous. You should know the Mexican very well beforestarting to get totally and deeply involved in project with him because it has to beknown that drugs and corruption is a reality in Mexico and can touch all the sociallayers. On another hand you have to accept to be involved in the other part life in orderto let the relationship move forward having more trust in it.June-December 2011 – IESEG School of Management 90
    • CAILLIER Hugo Influence of culture on negotiation 5.2 Group dynamic In the literature, we found that the group dynamic was very structured. But inreality, we saw that most of the times, when Mexicans form a group, it is done veryinformally and may not totally correspond to the five steps gave by Beddoes-Jones(2005) that are: forming, storming, norming, performing and mourning. Also, thefindings show that even in a group, the individual is very important and if not tokenapart, he can create perturbation and noises during the negotiation. So the first thing we will try to see is if the French view of the group dynamic helpsfor negotiation with Mexicans. In fact, French see the group dynamic as a verystructured system where every person should bring the same amount of work during thesame amount of time. This is due to the fact that French are more individualistic andeach person wants to be recognized as important in the group. But the fact is thatMexicans are much more collectivists and care more about being integrated in a groupas a whole. They will use it for another purpose: for having less decision to take bythemselves and have support on what they say. So the French vision of the groupdynamic does not help for intercultural negotiation as it is used in different purpose onboth cultures. In this part we will answer the first proposition that was about the understandingof the benefits and disadvantages created by the group dynamic in the negotiationbetween France and Mexico.P1a: French will refer to a team work expecting each person of the team to bringsomething before and during the negotiation.June-December 2011 – IESEG School of Management 91
    • CAILLIER Hugo Influence of culture on negotiation For French, the team work is used to share ideas and spread the task of a project.Mexican does not have such a repartition of the roles in the business life. As they are acollectivist culture, they will prefer to regroup in order to be a bigger number ofinteractants defending only one idea. This might be dangerous for the other team incase this group is not well managed or well handled by the other team. In fact, if thegroup is defending some idea without taking into account the other part answer ofdefending their point of view, it will be very hard to make them change their mind andless if no one is in charge of the group. French will prefer to be numerous in the team in order to bring more ideas andto defend each other in the case someone challenge the idea of one of his co-workers.So in order to be well accepted in Mexico, the French group has to be large enough toshow to the Mexicans that they are important but at the same time not to numerous. Inthis second case, the presence of too much people will create a source of noise duringthe negotiation and might also create tension between both teams feeling insecure. 5.3 Bureaucracy and Frencheness When talking about the Frencheness or the French bureaucracy, for most of theforeigners, it appears that those are negative components of the French Culture and willbe a barrier for the negotiation. But in the same time, those two components bring someadvantages in the negotiation. In fact, we saw that the Mexicans are a little bitdisorganised and by negotiating with French, this bring more rules and needs in order tokeep tracks of the commitments that have been made. By studying the effects of French bureaucracy and Frencheness, we were able toanswer the second proposition of the research.June-December 2011 – IESEG School of Management 92
    • CAILLIER Hugo Influence of culture on negotiationP2a: French will follow their home rules in order to achieve the signature of thecontract French should not bring all their documents, this might show that they are verywell prepared (maybe too much) and want to hurt the other part asking a lot of thingsand using hard bargaining. The bureaucracy itself is something that most culture takesas a disadvantage of the French culture. In fact, in France, everything has beenregulated by laws and rules. But on the other hand, following those rules might be agood way to stay on the right way to achieve what you are looking for. As Mexicansare not used to follow those rules literally, they use another kind of regulation that isbased on corruption for a part and moral from the other. They will do what they think isthe best for both except if they receive a gift that will make changing their minds. Also,French will focus on getting signatures at the end of the negotiation process that can behurtful for a Mexican who is before everything looking for a good relationship. The Frencheness is by himself the essence of the French’s culture. In this case,it can appear to be very harmful but also helpful at the same time. As culturaldifference, if a French is talking louder or getting more direct this might be normalduring a French negotiation but might be took as aggressiveness during an interculturalnegotiation. But on another hand the Frencheness have also good effect. For exampleMexicans will trust a French as they have good reputation and will also know that theyare punctual to give back reports or to come to meetings. So in conclusion, Frenchshould behave as expected, but might take into consideration that in order to achievethe main goal of signing a contract, they will have to bring some changes in thenegotiation process sharing the Mexican culture main point (as focus on relationship forexample).June-December 2011 – IESEG School of Management 93
    • CAILLIER Hugo Influence of culture on negotiation The Frencheness and French bureaucracy has been defined as a problem in theliterature review but the interviews pointed at the fact that it also can be beneficial forinternational negotiations. So in general, if the Mexicans are open minded, they willaccept the French as they are, and will benefit of what they can take from the Frenchculture. So the need of planning and the respect of the rules might add someorganization to the negotiation process. They should just take care about the feelingsthey might show around the table that could be taken as arrogance or aggressiveness 5.4 Leadership The leadership as explained in the literature review take as done that there is aleader that is gave all the time in the team. But thanks to the interviews we saw that lotsof time, it appeared to not have a clear, defined leader and that it was not necessarilythe person the higher in the company hierarchy that was in charge of the group. Also inthe motivation rules that were gave, some of them were not realistic and not applicablein all the cases. In fact, the rule that say “select motivated people” is not applicable insome case where the team members have not been chose by the leader but by the bosswhose might not be here the day of the negotiation. We can also notice that Adair(1987) took in consideration that the team members will remain the same during all therounds that will exist but that is one more time not exactly the reality as the employeesof the company will suffer from the turnover based on experience of new employeesand lower salaries. The importance of leadership in the formation of a negotiation team will beexplored and the main important points will be highlighted in this part answering theproposition:June-December 2011 – IESEG School of Management 94
    • CAILLIER Hugo Influence of culture on negotiationP1b: Mexican prefer to refer to one person that will take the main decisions andwill conduct the negotiation The leadership is a characteristic that some people might use in a good or in abad way. In the same time, a lack of leadership can be also problematic for a team. InFrance, the leader of a team is generally the manager or the person the highest inhierarchy. In Mexico, as they are focused on the power distance, they have a leadermost of the time that is the one that will give the first and last word of each meeting.But meanwhile, during the negotiation, there will be an ascendant informationtransmission having the leader sharing ideas and listening a lot to others person of histeam. A lack of leader could take the group into chaos and might create anunderstandable atmosphere where no decision could be taken in accordance witheverybody. So in order to negotiate well, the French should try to identify the leader in theMexican team and ask him confirmation of final decision or further meetings. And inthe case there is no clear leadership in the other team, they should treat all teammember individually and not as a group which could be risky. Now we can see the effects of the French view of leadership on internationalnegotiation. In order to understand it, we should take back an idea that has been broughtin the interview. Someone said that when he arrived in Mexico, he always tried to dealwith the leader of the other team but we also saw that there is not a leader all the time.So as a conclusion, we could say that the expectations of French about the Mexicanleadership are very high compared with the reality. It might be useful for French to seethe Mexican leadership view as a way of enhancing the relationship with the other teammore than managing and motivating his proper team.June-December 2011 – IESEG School of Management 95
    • CAILLIER Hugo Influence of culture on negotiation 5.5 Time and relationships About the time effects on negotiation, the literature review was quite true about it.We should just notice that Lebaron (2003) said that both French and Mexicans werepolychronic oriented. But after exploring the findings a little bit more, we saw thatMexicans were much more polychronic than French. We might even say that Frenchare more monochronic oriented than polychronic. In fact, all the criteria that describethe monochronic can be paste on the French culture. They do not like other to arrivelate at meetings, prefer to follow an agenda and like to have beginnings and endingswritten. This part will help us to understand if the French vision of time improves thenegotiation process with Mexicans. In the previous part where we compared theliterature review with the findings we saw that the French were more monochronicwhile the Mexicans were more polychronic oriented. This might create somedisagreement during the negotiation process but that is why they are not compatible atall. In fact, the French’s monochronic made them trustable as they are nearly always ontime and handing back documents on time. But in other hand, by being very strict ontime, two kinds of problems can appear: the fact that they will seems too pushy withMexicans by asking them short and strict deadline and also by refusing invitations todinner or for out-of-the-table meetings because it will look like a waste of time forthem. The relationship has not been studied as an independent topic as it was involved inmore or less all the subjects (group dynamic, leadership…). But in order to comparewhat is said in the texts and what have been observed in the findings, we can notice thatonly few authors talked about the mixing of personal and professional relationshipJune-December 2011 – IESEG School of Management 96
    • CAILLIER Hugo Influence of culture on negotiationwhich has been the most relevant problem for the French that were negotiating withMexicans. In the first part of the finding, we saw that the time and the relationship werevery related to each other’s. So in this part we will be able to answer the problematicabout time and relationship.P2b: Mexican use time as a tool to create a better relationship between the twonegotiators Here we saw that French are very demanding about time. They are expectingpeople to be on time and refer everything with time planning. That is one of the manycauses of the high level of stress that exists in France. So in a way, Mexicans arepleased to negotiate with French because they know that they are trustable about delaysof shipping for example. But in the same time, as the Mexican are not as focused on thetime, it can create some tense situations. The relationship will also be closely linked with time. In matter of fact,depending on what time you choose to meet with your business partner, this mightchange a lot the perception he will have of you. The relationship is also linked with thetime you spend with the other person. In fact, if you only spend a short time with yourbusiness partner, you will not be able to create a long term relationship. So in order toget this kind of relationship, French team will have to make effort to create a businessrelationship that will be based on a friendship and sometimes take more time thannecessary to achieve their objectives. From a French point of view, they have to take care with the time because theymight be too pushy by asking a near deadline and this might damage the relationshipJune-December 2011 – IESEG School of Management 97
    • CAILLIER Hugo Influence of culture on negotiationshowing a lack of trust in the Mexican team. Mexicans are friendly with everybody atfirst sight, so French have to make the next move in order to ameliorate thisrelationship. The next point that will be review is the French angle for relationships. In fact, inMexico, the relationships are created very easily and then, if needed, it will be taken tohigher levels. In France, it works totally differently. The first stage when you meet aperson will be to just get in touch sometimes before he really became your friend. So itmight seem not appropriate to directly create a friendship bond with a business partnerfor French but this is the only solution in order to get to the negotiation table. 5.6 Negotiation styles The negotiation styles that have been studied and that were expected from bothcultures have been confirmed by the interviews. We just should highlight the fact thatthe negotiation styles are proper to each culture in general but in the main time, thestyle might change depending on who you are facing. In this case, French are seen ascompeting facing Mexican’s team but will be seen as accommodating facing culturethat are more based on hard bargaining such as Russia for example. The last part of the finding will explain how by crossing the proposition 1a andthe proposition 1b, it will help to understand the reasons why Mexicans adopt anaccommodation style when facing a French team. The proposition 1c that will beanswered is:P1c: The Mexican team will try to create a good relationship with one person tonegotiate with him using an accommodation style.June-December 2011 – IESEG School of Management 98
    • CAILLIER Hugo Influence of culture on negotiation As we saw in the previous parts, the Mexicans will try to create a friendshiprelation with their partners. In order to do so, their negotiation style will be very soft;they will try to not pressure their interlocutor by creating a friendly atmosphere withoutany kind of tension (time or verbal). In order to not damage the relationship, theMexican will be ready to give more than take. This will also create a feeling of trustwith the French team and at the end, they will also be able to give a little bit more thanwhat they planned. Meanwhile, as they are using an accommodation style, they will bevague about the topics that can create problems and will not get onto directly. The useof only oral commitment is also a way of not keeping traces of what have been said andmight be the source of some modification of the agreement. This might cause thenegotiation to be a little slowed or sometimes totally deadlocked.P2c: The French team will feel under pressure thinking Mexicans are usingstratagem with time and will use a competition style. The French are a little bit more stressed than the Mexicans by nature. So duringnegotiation, they might feel under pressure even if this is not the aim of the Mexicanbehaviour. For example, while a Mexican will act normally and ask to take a break orto have lunch, the French might feel that he is using a stratagem in order to have moretime. Even if it might be the case, the French should also take into consideration thatthe Mexican might just want to relax and share some privileges time before starting thenegotiation again. In front of Mexican, the French interviewees admitted that they aremore able to use an aggressive style than while negotiating with French. This can beexplained by the fact that the Mexican use generally a more soft negotiation style andthat might give the feeling to the French team that they are more powerful. So in orderto not create a brawl during the negotiation, the French team should adapt his style tothe Mexican’s one and take care about not making generalities of Mexican culture butJune-December 2011 – IESEG School of Management 99
    • CAILLIER Hugo Influence of culture on negotiationalso differentiate each Mexican depending on his place in the company and the regionhe comes from. The understanding of the Mexican culture is a key success for everyFrench businessman that will have to negotiate in Mexico. Even if the French thinkthey are more professional than the Mexican, each culture has his way to do businessand should be integrated in the French culture in order to find the best outcome foreach. As the French see their negotiation styles might help when arrive the time ofconcrete negotiation as they already know how they negotiate. In fact, the French thathave been doing negotiation across the Atlantic already know that they are normallydescribed as a little bit cold, respecting the standards of negotiation and because of theirnational pride; they have a great influence of their negotiation characteristics. But whatcan entrap the French is the expecting negotiation styles that they think Mexicans willhave. In fact, as Mexico is far from France, they have only few occasions to negotiatewith them and to learn their negotiation style comparing with other countries such asEngland or Spain for example. So in order to negotiate well with Mexican, the Frenchshould get to know the Mexican culture and negotiation styles that can be differentfrom a country to another.June-December 2011 – IESEG School of Management 100
    • CAILLIER Hugo Influence of culture on negotiation6 Conclusion This part will be drawing a conclusion about the whole research and will also givedirect ideas for managers that should be applied in the real life in order to answer theresearch question so how to use culture as an asset during international negotiation. 6.1 General conclusion After doing this research, we can draw general conclusions on the way Frenchshould manage the cultural interaction on the negotiation. Those conclusions have beenregrouped in the table above. They help to answer the main research question that was: How do French negotiators should use the following variables “Relationship, team work, leadership, bureaucracy and time” as assets during international negotiation with Mexican?Conclusion 1: The literature review did not talked that much about the effect ofFrencheness on the other cultures. But it has to be taken in consideration that the effectscan be damaging the negotiation process if they are not managed well.Conclusion 2: The literature review does help us to see the three main functionspresented in Adair’s model but it did not insist on the fact that each one can influenceon different proportions the global mechanism of the group dynamic this have beenfound by crossing the propositions 1a and 1b.Conclusion 3: this conclusion has been drawn taking as basis the propositions 1b, 2band 3b. Those three were based on analyzing the time perception of both countriesseparately. But we can understand that in order to get efficient, the two perceptions oftime are compatible when both parts understood the utility of it.June-December 2011 – IESEG School of Management 101
    • CAILLIER Hugo Influence of culture on negotiationConclusion 4: With the help of the findings, we understood that French should notadopt a competitive style with Mexicans because as for them the business is combinedwith the friendship, if you are competing in the professional circle which means thatyou do not want to improve the friendship bond between them. And for a Mexican, ifthere is no friendship, there is no deal. This conclusion has been taken from thepropositions 3a and 3b about the negotiations styles of both cultures. Literature review/ Conclusions Idea Findings French should take care of their habits Frencheness should be 1 and communication controlled Identify the leader to get confirmations Observe that the three 2 from him or if no clear leader, take the functions affect in different members of the group separately proportion the leadership French need to focus more on Different from the literature 3 spending time with the other part and review that said that French be less regarding of delays was a monochromic culture French should not adopt a competition The literature review said that 4 style in order to not break the French style is competing but relationship in here, it is not appropriate Table 4 Summary of conclusionsJune-December 2011 – IESEG School of Management 102
    • CAILLIER Hugo Influence of culture on negotiation 6.2 Managerial implications Using the four conclusions we made in the part above, we are able to make somerecommendations to the French businessman that will have to negotiate with Mexicanin the future. So first of all they should generally take care about their behaviour whilethey are not in France as their habits might be a problem for the Mexican culture. Theyshould try to adapt their negotiation style and strategies (communication, preparation,time) to the Mexican ones. They will have also to take care about forming a group withnumerous members if the other part only has few members. This might create a tensesituation where the outcome might be negatively affected. While facing a group in thenegotiation they also have to take a time to identify the person that have the leadershipamong the others members of the group. This might be useful in order to not get anymisunderstanding or issues not covered. Having a person in charge in the other part thatlead the group might permit you to leave him responsibilities. The topic of time willalso be a very important one. In fact, if a French is coming to negotiate in Mexico, hehas to plan to have enough time to deal peacefully without any time pressure. So itcould be a good idea to take a flight ticket with open date. This time the businessmanwill spend in Mexico should be used efficiently in order to learn about the Mexicanculture but also to start a friendship with his business partner. Furthermore, Mexicansare very friendly and it might be a very good way of getting to know his culture andfamily.June-December 2011 – IESEG School of Management 103
    • CAILLIER Hugo Influence of culture on negotiation7 Limitations of the research We already gave the literature review limits that were based on the fact that thepapers were not enough focused on the Mexican and French culture. Also, when thosecultures were approached, it was almost never compared one with the other one so theinteractions between both were not clearly exposed. We could also add that thedocuments that we looked threw were maybe not representative of the whole work thathas been made about this topic and we might miss some elementary research that couldhave changed the research methodology for example. We could also add separately allthe limits that can be found for each topic of the literature review as the example of thesardines for the leadership was. As we said, we also found limits in the research methodology such as the fact thatwe should have mixed several technics of collection of data in order to be moreefficient and precise in the answers we gave to the propositions. Also, a main point wasthat we only interviewed French businessman and we did not reached to obtain anotherpoint of view about the French culture than the French’s one. But added to the ones we already gave in the research methodology, we can alsofind other limits that are directly linked to the findings. The first limit is the translationof the interviews in English. In fact, even if we tried to do it as similar as possible inorder to get the same idea, the meaning of the sentence might change a little bit while ithas been translated as some French expressions are not possible to translate. We canalso add that the Mexican negotiation style that has been reported here is the oneperceived by the French interviewees. This description might change from a person toanother and much more if those persons are from different cultures. And we shouldfinally add that this research have been made by a French, so the findings have beenJune-December 2011 – IESEG School of Management 104
    • CAILLIER Hugo Influence of culture on negotiationtranslated and explained with a point of view that is proper to French. In order tocounter this fact, this research should have been made in cooperation with a Mexicanstudent or by a student of a third country.June-December 2011 – IESEG School of Management 105
    • CAILLIER Hugo Influence of culture on negotiation8 Directions for future research In order to complete this research, some additional work should be added. This hasnot been done in this document for time restrictions and also because this study wasaimed to work on some cultures variables only. So in order to add value to this topic, itshould be interesting to add others variables in the research as for example the level ofrisk that each culture is ready to face in order to fill his objectives. The masculinitymight also be a very interesting topic to work on as Mexico has a really high one. Thequestion might looking the importance or role of women in international negotiationswith Mexico. But in order to obtain significant values, the necessity of interviewing more peoplemight appear. If so, the variety should also be extended. The wider variety of thesectors the companies are involved in should be a good thing too. Also, thegeographical places were the persons negotiated are important. Here there were onlythree cities were the interviewees worked so the Mexican cultural influences were veryrestricted. Also, it appeared that the negotiation styles between cultures is a very large topicthat should be enlarge in further research as the interactions between both negotiationstyles depending on their cultures but also the adaptation depending on which style theother culture adopt. The last point which deserves more interest should be to add a Mexican point ofview to this research. Either having a Mexican student as a co-writer of the next reportor interviewing Mexican businessman should also be a good way to have a larger panelof variables to study. Obviously, an interesting report should be the opposite of this oneJune-December 2011 – IESEG School of Management 106
    • CAILLIER Hugo Influence of culture on negotiationdescribing how the Mexicans should manage the main cultural variables thatdifferentiate them of the French in order to improve the outcome.June-December 2011 – IESEG School of Management 107
    • CAILLIER Hugo Influence of culture on negotiation9 Personal reflection and key learning This master thesis was for me a good way to do an entire research process leadingto the redaction of a thesis for academic purpose. This was a great challenge to meet asit was the longest work I ever done until now. This helped me to understand better thesteps that need to be respected when writing a research such this one. Another pointthat was for me very challenging was to write the entire paper in a language that is notmy mother tongue. More than the writing part, this research also helped me understanding better theMexican culture. Regarding the carrier I am looking for, this might be useful for thefuture international interactions that I could meet in my future life. Actually thisresearch helped me to analyze better the interactions that culture can have with thepersonal and business life. By having a retrospective view about this document, it alsohelped me to emit a critical point of view about French behaviors and about the habitsthat I should take care about while meeting other cultures.June-December 2011 – IESEG School of Management 108
    • CAILLIER Hugo Influence of culture on negotiation10 References 1. Abdur - Rahman Pavel (2010) Research philosophy: Quantitative vs qualitative – Pavel’s thought wave – Internet page: prahman.wordpress.com – 2. Adair John (2005) How to grow leader - Effective leadership Development - CIPD 3. Adair John (1987) Effective motivation – Guildford - Talbot Adair Press - 4. Adair, Brett, Lempereur, Okumura, Shikhirev, Tinsley and Lytle (2004) Culture and Negotiation strategy - Ithaca US - Negotiation Journal 5. Adler (1997) International dimensions of organizational behaviour –Cincinnati US - South-western college publishing 6. Altman, I. & Taylor, D. (1973) Social penetration: The development of interpersonal relationships - New York: Holt 7. Ambafrance (2010) internet page : www.ambafrance-mx.org – México 8. Beaulieu Dominique (2011) Interpersonal communication applied to negotiation Class – IÉSEG Lille 9. Beddoes-Jones Fiona (2005) Train the trainer – Fenman Limited 10. Birukou Aliaksandr, Blanzieri Enrico, Giorgini Paolo, and Giunchigli Fausto (2009) A formal definition of culture - University of Trento – Italy 11. Borchers (1999) Interpersonal communication – Allyn and Bacon – Internet page: www.abacon.com/commstudies/interpersonal/interpersonal.html - Minnesota 12. Bowie (2008) The effect of culture on business relationships – The Neumann Business Review: The journal of the division of business & information management 13. Boughton (2009) Cultural impact on negotiation - Negotiation Basics 14. Brett , J.M.,S Shapiro and Lytle (1998) Breaking the bonds of reciprocity in negotiation – Academy of management journal 15. Brumann, C. (1999) Writing for culture: Why a successful concept should not be discarded [and comments and reply] - Current Anthropology 40 16. Camp Jim (2002) Start with no: The negotiating tools that the pros don’t want you to know) –New York - Crown business 17. CBS News internet page (2009) Less stress in Mexico? – The associated press - http://www.cbsnews.com/stories/2006/12/20/world/main2285969.shtmlJune-December 2011 – IESEG School of Management 109
    • CAILLIER Hugo Influence of culture on negotiation 18. Communicaid internet page (2009) Doing Business in Mexico – Mexican social and business culture – www.communicaid.com 19. Cohen (1997) Negotiating Across Cultures – Washington D.C. US – Institute of Peace 20. Darwin Charles (1971) The descent of Man – London – John Murray 21. De Vaus David A. (2001) Research design in social research – London - Sage publication 22. Dickson M, Den Hartog D, Mitchelson J (2003) Research on leadership in a cross cultural context: Making progress, and raising new questions – Detroit – Psychology Department 23. Faure (2002) International negotiation: the cultural dimension - International Negotiation: Analysis, approaches. – San Francisco US– Jossey-Bass 24. Fisher Glen (1980) International Negotiation: A cross-cultural perspective – Boston – Interculutural Press Inc 25. Garcha Arman (2007) Diplomatic Culture or Cultural Diplomacy : the role for culture in international negotiation 26. Grove (2005) Worldwide differences in business values and practices: overview of GLOBE research findings –Brooklyn US - Grovewell LLC 27. Hofstede (1997) Cultures and organizations: Software of the mind – University of Limburg at Maastricht Netherlands – McGraw-Hill 28. Hofstede (2001) Culture’s consequences, comparing values, behaviors, institutions, and organizations across nations – Oaks US – Sage publication 29. Horst (2007) Cross-Cultural Negotiations - Air War College – Maxwell US 30. Jung Carl Gustav (1923) Psychological Types – London - English edition 31. Katz Lothar (2007) Negotiating International Business – The negotiator’s reference guide to 50 countries around the world - Booksurge Publishing 32. Kenna and Lacy (1994) Business France: A practical guide to understanding French business culture – Lincolnwood US – NTC publishing Group 33. Knapp, Mark (1984) Interpersonal communication and human relationships – Boston - Allyn and Bacon 34. Lebaron (2003) Culture based negotiation style - Beyond Intractability 35. Luft, Joe (1969) Of human interaction - Palo Alto - National PresJune-December 2011 – IESEG School of Management 110
    • CAILLIER Hugo Influence of culture on negotiation 36. Quebral Nora (2001) Development Communication in a Borderless World Continuing Education Center: Department of Science Communication - College of Development Communication, University of the Philippines Los Baños 37. Robson C. (2002) Real World Research – 2nd edition – Oxford – Blackwell 38. Rubin (2002) The actors in Negotiation - International Negotiation: Analysis, approaches, issues. – San Francisco- Jossey-Bass 39. Salacuse (1998) Ten Ways that culture affects negotiating style: Some surveys results – New York U.S. - Negotiation Journal 40. Salmon Wesley C. (1980) Probabilistic causality – Los Angeles - University of southern California 41. Schutz William (1958) Firo: A three-dimensional theory of interpersonal behavior - New York - Holt, Rinehart, and Winston 42. Shannon Claude and Weaver Warren (1975) Théorie mathématique de la communication - Paris - CEPI 43. Shannon, C. E. A (1948) Mathematical Theory of Communication - Bell System Technical Journal, vol. 27, pp. 379-423 and 623-656 44. Spates Jennifer (2008) Blog for “committed sardines” – internet page: http://jenniferspates.blogspot.com/2008/02/leadership-models-fro- reframing.html 45. Speakman Ian (2010/2011) Classes “Negotiation in Context” & “Advance negotiation” – IÉSEG Lille 46. Ury William, Fisher Roger and Patton Bruce (1991) Getting to yes: Negotiating agreement without giving in – Random House Business Books 47. Vivre à l’étranger internet page (2010) Studyrama/Vocatis - Nanterre http://vivrealetranger.studyrama.com/article.php3?id_article=1658 48. Weiner, N (1986) Human Use of Human Beings: Cybernetics and Society - AvonJune-December 2011 – IESEG School of Management 111
    • CAILLIER Hugo Influence of culture on negotiation11 List of figuresFigure 1: Tuckmans model of group dynamicsFigure 2: French’s Scores of Hofstedes modelFigure 3: Mexican’s Scores of Hofstedes modelFigure 4: Five negotiation behavioral stylesFigure 5: Three levels of uniqueness in Human Mental Programming of HofstedeFigure 6: Knapp’s Relationship ModelFigure 7: Shannon’s ModelFigure 8: Action centered leadership model of AdairFigure 9: The logic of the research processFigure 10: Qualitative VS Quantitative ResearchFigure 11: Theorical Research ModelFigure 12: Age of the intervieweeFigure 13: Gender repartitionFigure 14: Time spent as employeeFigure 15: Repartition of the sectors of activityJune-December 2011 – IESEG School of Management 112
    • CAILLIER Hugo Influence of culture on negotiation12 List of tablesTable 1: French’s scores of Hofstedes modelTable 2: Mexicans scores Hofstedes modelTable 3: Johari’s WindowTable 4: Summary of conclusionsJune-December 2011 – IESEG School of Management 113
    • CAILLIER Hugo Influence of culture on negotiation13 Table of contentFINAL Master THESIS .............................................................................................. 2Statement of confidentiality: ................................................................................... 3Acknowledgement ................................................................................................... 4Summary ................................................................................................................. 5Abstract................................................................................................................... 71. Introduction ..................................................................................................... 9 1.1 The research problem statement ........................................................................ 9 1.2 The research objective ...................................................................................... 10 1.3 The main research questions ............................................................................ 10 1.3.1 Sub-questions.................................................................................................................... 112 Literature review ............................................................................................ 13 2.1 Conceptual background .................................................................................... 13 2.1.1 Culture ............................................................................................................................... 13 Hofstede ...................................................................................................................................... 13 2.1.2 Time ................................................................................................................................... 16 Lebaron ....................................................................................................................................... 16 2.1.3 Group dynamic .................................................................................................................. 19 2.1.4 Defining and exploring French and Mexican cultures ..................................................... 22 2.1.4.1 France ...................................................................................................................... 22 2.1.4.2 Mexico ..................................................................................................................... 26 2.1.5 Cultural negotiation .......................................................................................................... 31 2.1.5.1 Blake and Mouton ................................................................................................... 31 2.1.5.2 Horst ........................................................................................................................ 34 2.1.5.3 Andrew Boughton ................................................................................................... 37 2.1.6 Interpersonal communication .......................................................................................... 40 2.1.6.1 Tim Borchers ............................................................................................................ 40 2.1.6.2 Shanon ..................................................................................................................... 44 2.1.7 Leadership ......................................................................................................................... 46 Adair ............................................................................................................................................ 46 2.2 Limitation of the literature review .................................................................... 483 Research methodology ................................................................................... 50 3.1 Research design................................................................................................ 50 3.1.1 Design ................................................................................................................................ 50 3.1.2 Propositions and Model.................................................................................................... 53 3.2 Research methodology ..................................................................................... 56 3.2.1 Research procedures ........................................................................................................ 56 3.2.2 Design of the interviews ................................................................................................... 58June-December 2011 – IESEG School of Management 114
    • CAILLIER Hugo Influence of culture on negotiation 3.2.2.1 First question of the interview: .............................................................................. 58 3.2.2.2 Questions about the first proposition: ................................................................... 59 3.2.2.3 Questions about the second proposition: .............................................................. 60 3.2.2.4 Questions about the third proposition: .................................................................. 62 3.2.3 Data analysis ..................................................................................................................... 63 3.2.4 Limitation of the research methodology ......................................................................... 644 Findings ......................................................................................................... 66 4.1 Introduction ..................................................................................................... 66 4.2 Descriptive statistics ......................................................................................... 66 4.3 The findings...................................................................................................... 70 4.3.1 Cultural differences that affect negotiation .................................................................... 70 4.3.2 Group dynamic .................................................................................................................. 72 4.3.3 Bureaucracy and Frencheness .......................................................................................... 75 4.3.4 Leadership ......................................................................................................................... 77 4.3.5 Time ................................................................................................................................... 79 4.3.6 Relationship ...................................................................................................................... 81 4.3.7 Negotiation Styles ............................................................................................................. 84 4.4 Summary of the findings ................................................................................... 875 Discussion ...................................................................................................... 89 5.1 Cultural differences .......................................................................................... 89 5.2 Group dynamic ................................................................................................. 91 5.3 Bureaucracy and Frencheness ........................................................................... 92 5.4 Leadership ....................................................................................................... 94 5.5 Time and relationships ..................................................................................... 96 5.6 Negotiation styles............................................................................................. 986 Conclusion .................................................................................................... 101 6.1 General conclusion ......................................................................................... 101 6.2 Managerial implications ................................................................................. 1037 Limitations of the research ........................................................................... 1048 Directions for future research ....................................................................... 1069 Personal reflection and key learning ............................................................. 10810 References ................................................................................................... 10911 List of figures................................................................................................ 11212 List of tables ................................................................................................. 11313 Table of content ........................................................................................... 11414 Appendices................................................................................................... 117June-December 2011 – IESEG School of Management 115
    • CAILLIER Hugo Influence of culture on negotiation Appendix 1 : Hofstede cultural differences between France and Mexico ..................................... 117 Appendix 2 : Salacuse 10 ways that culture affect negotiation ..................................................... 118 Appendix 3 : Blank Information Sheet ........................................................................................... 119 Appendix 4 : Information sheet Interviewee 1 .............................................................................. 120 Appendix 5 : Information sheet Interviewee 2 .............................................................................. 121 Appendix 6 : Information sheet Interviewee 3 .............................................................................. 122 Appendix 7 : Information sheet Interviewee 4 .............................................................................. 123 Appendix 8 : Information sheet Interviewee 5 .............................................................................. 124 Appendix 9 : Information sheet Interviewee 6 .............................................................................. 125 Appendix 10 : Information sheet Interviewee 7 ............................................................................ 126 Appendix 11 : Information sheet Interviewee 8 ............................................................................ 127 Appendix 12 : Information sheet Interviewee 9 ............................................................................ 128 Appendix 13 : Information sheet Interviewee 10 .......................................................................... 129 Appendix 14 : Information sheet Interviewee 11 .......................................................................... 130 Appendix 15 : Example of transcription and translation of an interview ...................................... 131June-December 2011 – IESEG School of Management 116
    • CAILLIER Hugo Influence of culture on negotiation14 Appendices Appendix 1 : Hofstede cultural differences between France and Mexico 100 80 60 France 40 Mexico Difference 20 0 PDI IDV MAS UA  PDI: Power distance Index  IDV: Individualism  MAS: Masculinity  UCA: Uncertainty Avoidance IndexThis appendix permitted us to highlight the importance of Individualism as a culturaldifference between both countriesJune-December 2011 – IESEG School of Management 117
    • CAILLIER Hugo Influence of culture on negotiation Appendix 2 : Salacuse 10 ways that culture affect negotiation 100 90 80 70 60 50 40 30 France 20 10 Mexico 0 Difference This figure permitted us to highlight the importance of contract/relationship, oftime and leadership as cultural differences between both countries.June-December 2011 – IESEG School of Management 118
    • CAILLIER Hugo Influence of culture on negotiation Appendix 3 : Blank Information SheetInformation about companyName of the company:Aim of the company:Number of employees:Approximate turnover:In which fields does the company negotiate with French/Mexican?Since how long?Information about the interviewedName:Place into the company:Time you spent within the company:Age:Sex:Other comments about this interview:June-December 2011 – IESEG School of Management 119
    • CAILLIER Hugo Influence of culture on negotiation Appendix 4 : Information sheet Interviewee 1June-December 2011 – IESEG School of Management 120
    • CAILLIER Hugo Influence of culture on negotiation Appendix 5 : Information sheet Interviewee 2June-December 2011 – IESEG School of Management 121
    • CAILLIER Hugo Influence of culture on negotiation Appendix 6 : Information sheet Interviewee 3June-December 2011 – IESEG School of Management 122
    • CAILLIER Hugo Influence of culture on negotiation Appendix 7 : Information sheet Interviewee 4June-December 2011 – IESEG School of Management 123
    • CAILLIER Hugo Influence of culture on negotiation Appendix 8 : Information sheet Interviewee 5June-December 2011 – IESEG School of Management 124
    • CAILLIER Hugo Influence of culture on negotiation Appendix 9 : Information sheet Interviewee 6June-December 2011 – IESEG School of Management 125
    • CAILLIER Hugo Influence of culture on negotiation Appendix 10 : Information sheet Interviewee 7June-December 2011 – IESEG School of Management 126
    • CAILLIER Hugo Influence of culture on negotiation Appendix 11 : Information sheet Interviewee 8June-December 2011 – IESEG School of Management 127
    • CAILLIER Hugo Influence of culture on negotiation Appendix 12 : Information sheet Interviewee 9June-December 2011 – IESEG School of Management 128
    • CAILLIER Hugo Influence of culture on negotiation Appendix 13 : Information sheet Interviewee 10June-December 2011 – IESEG School of Management 129
    • CAILLIER Hugo Influence of culture on negotiation Appendix 14 : Information sheet Interviewee 11June-December 2011 – IESEG School of Management 130
    • CAILLIER Hugo Influence of culture on negotiation Appendix 15 : Example of transcription and translation of an interviewInterview 1Asking general information that can be found in appendix 4The sentences wrote in bold are here only to show the logical continuity of theinterview.General question about cultureWhat makes you so French (culture, personality, words, believes)? Personally I have a good knowledge of the Mexican culture and this give me a good professional network in South California (Mexico) As a French, I benefit from a good reputation in general. We speak of French in good: quality of work, trust in the delays and respect of commitments. I really appreciated those differences when I started to travel because I never had an external point of view about the French’s culture before that.P1a French will refer to a team work expecting each person of the team to bringsomething before and during the negotiation.What is your preparation process before negotiating? In my case, the meeting is always informal. In Mexico, you need to know how to speak of everything and nothing in particular at the same time. There is a need of installing an atmosphere of trust because everything is made using “feeling”. Even if I have to fix objective before the negotiation starts, the meeting has to be always very natural. We cannot go directly to the objective you fixed. You have to collect information before about the activities, the price, the person… The dress code also has to be informal because the persons I meet are generally relaxed and did not always studied or have been sent to school. You also should be careful to not create a gap and take care of the environment in which the meeting will take place: it is a holyday and beach atmosphere so you should always adapt yourself in order to make your interlocutor being on the same level of equity as you.How the number of person in your team can affect the way you negotiate? Everything depends on the role of the other participants. But in general, more people there is, more numerously are the interactions and harder it is to be listened. Because in negotiations, we lose lots of time in personalJune-December 2011 – IESEG School of Management 131
    • CAILLIER Hugo Influence of culture on negotiation matters topics, I always try to deal at the start of the meeting with those kind of topics like this we are free to focus entirely on business after.P2a French will follow their home rules in order to achieve the signature of thecontract.What big differences you can point between the negotiation process with French orwith Mexicans? (Follow an agenda/time took/do as if they were French) The Mexicans are: - More relaxed, it is not awkward to drink a glass of wine or to share a meal with them. - Less in a hurry, they take time to do what they have to do before starting the negotiation for example. - They are also less organised - They cruelly lack of punctuality - They adopt a style more familiar and looking for knowing more about your private life - Everything is oral, the engagement, contracts etc… And they base themselves on the trust. - The network is finally much easier to build in Mexico. That is why you should always take car to keep contact with each one of your interlocutors because they always have good advices if you are looking for extending your activity or line of product.What kind of stratagem you use to make the Mexican team take a decision faster? Effectively you need a lot of empathy in order to negotiate with the Mexicans in general. Sometimes, the persons that you met become friends. We also can see for example a promotion for a night at your home, a diner or an invitation to enjoy the pool of one of your business partner with his family. And also you should not leave the matter without solutions, do not hesitate to call until you obtain the answer to your problem.P1b Mexican prefer to refer to one person that will take the main decisions andwill conduct the negotiationDid you notice any differences in the Mexican Negotiating style when you were inteam or alone? (Responsibility of the matter in the company/skill to negotiate) Not really, each time is very different. I negotiate sometimes with some Mexican colleagues in order to get a better first contact but then I can continue the negotiation alone as I already had the first contact done.June-December 2011 – IESEG School of Management 132
    • CAILLIER Hugo Influence of culture on negotiationWhich kind of relationship does the Mexican team has between his members? From what I observed, I didn’t notice any level of hierarchy between the members. Generally, the meetings are informal and very animated. There are a lot of movements, nobody stay sat in his chair and that will permits you to speak with everybody. You also have to like the third degree because the Mexicans like joking.P2b: Mexican use time as a tool to create a better relationship between the twonegotiators.What do you think is the main priority for a Mexican team: relationship or the contractitself? To me, have a good relationship is the most important. This is due to the fact that in general, a contract will be done only by spoken words. And if you just take this commitment, by itself if there is no relationship behind this, his words have no value. A good relationship is an asset because the network is an incontrovertible key to business. We cannot live without it in Mexico in order to successfully manage your professional life.How did you create your relationship with the Mexican team and when (talking aboutthe same subjects/invited in family/ during lunch time) Since the first time we meet, as the Mexicans are very friendly it is easy to be have them as friends quickly even if you would have to work on the relationship later. I almost always have been invited to drink something with my other team workers while I was doing business in Mexico. Each time, it is done in a very good atmosphere with no ulterior motivation to it.P1c: The Mexican team will try to create a good relationship with one person tonegotiate with him using an accommodation style.Did you felt that the negotiation went well for you most of the time? To me , yes because it is quite informal so the atmosphere make you feel better and as you are more optimist about the outcome, you will propose better options to the other team, and they will give a little bit more. But the problem is that a negotiation for a Mexican never end, when a commitment has been take, I am never sure at 100% that he will respect it exactly as it has been said. In order to not face this kind of situation, you should always keep regular contacts with him and always take care of maintaining your network.What kind of relation you noticed between the outcome of the negotiation and therelationship with the other team?June-December 2011 – IESEG School of Management 133
    • CAILLIER Hugo Influence of culture on negotiation Yes, in general, a good relation will take you to sign long term contracts. This has been the case for nearly 90% of the negotiation I did. Only sometimes, it happened that the contact was very good but at the end, they might have received from pressure from above and totally changed their mind when it was time to sign the contract.P2c: The French team will feel under pressure thinking Mexican are usingstratagem with time and will use a competition style. (While it’s just linked withFrencheness and Mexican style)When you feel under pressure or insecure about the outcome, how do you react andwhich negotiation style you adopt? I always try to avoid the conflicts with the Mexicans. As I know the relationship is the main point of the professional negotiations, it seems logical that creating a problem with the other part will damage your relationship and might create a business rupture. And more than a good contact and contract, you might also loose the reputation and the trust that other Mexicans had in you as they are very collectivist, the information will circulate inside there group (Mexicans, business partners) before you as a foreign businessman.Did you regret some past actions in your last negotiation seeing that it was not useful toact like this? (Being hard on negotiation/rude/damage the relationship) and what didyou do about it? When you are looking for going directly to the main objective of your shopping list* during the negotiation, you might put your interlocutor under pressure and in the Mexican culture, I don’t think it is very injudicious to arrive to this point. The exchange has to stay professional, efficient, but before everything else, the atmosphere has to stay friendly. We have to take our time in Mexico… But even like this, each time I did something wrong with a business partner, I always found a way to correct the misunderstanding or the bad situation by talking to the person I hurt. Mexicans are very open to discussion so it helps a lot in order to not stay angry with someone and ask him for forgiveness.June-December 2011 – IESEG School of Management 134