l30Put2.TheCulturalContextofClobalManagementmanagelshavele.docx

l30Put2.TheCulturalContextofClobalManagement
managelshavelearnedthatcultuleandcommunicationareinextricabl
ylinkedandthatthey
shouid prepare themselves u""orolngtf.
Most wiltr also suggest that you
carefully watch and
Iisten to irow your hosts are to**unf,oting
and to follow their lead'
e.ults{rai Veriahles in the Coxmrnunieation
Frelcess
on a different level, it is also useful to be aware
of cultural variables that can affect the cotn-
rnunication pfocess uy innu"n"ing a person's fer"eptions;
r:T: of these variables have been
identified by Samovar una
porr". ind hi.cu...d'U' fil*it and Moran',and others'I7 These vari-
ables are as follows: utiiioO"r, social organi
zatioi,thought patterns, roles, language
(spoken or
written), nonverbal communication
(including kinesic behavior' proxemics' paralanguage'

and
object language), and time. Although these
variables are discussed separately in this text'
their
effects are interdep"nJ*n, and iiseparable-or,
as Hecht, Andersen' and Ribeau put 1t'
..Encoders and decoders process nonverbal "u",
u,"u.onceptual, multichanneled gestalt.''18
AttitutlesWeallknowthatourattitudesunderliethewaywebehavean
dcommunicate
and the way we int"rpret messages from others'
Ethnocentric attitudes are a particular source
of
noise in cross-culturai-"o**rlni"ution. In the
incident described in Exhibit 4-2' both the
American ancl the creek-are clearly attempting
to interpret anci convey meaning based
on their
own experien"", or *ruf lind of transaction. rnl e*"rican
is probably guilty of stereotyping the
Greek employee by quickly jumping to the "on"futlon
that he is unwilling to take responsibility
for the task and the scheduling'

Thisproblem,stereotyping'occurswhenapersonassulnesthatevery
memberofasociety
or subculture has the ,u*" "-hiuru"teristics
or traits' Stereotyping is a common cause
of misunder-
standing in interculturui .o*runiration. It i, * uruirrury ,'hz{,
andoften destructive way to find
out about people. Astute managers * u*ur" oi tir" oung"tr
of cultural stereotyping and deal
with each person as an individuut *;tt' whom they
may form a unique relationship'
Sacialorganizationourperceptionscanbeinfluencedbydifferencesi
nvalues,approach.
or priorities relative to the kind of social
organi'ution* to which we belong' These
organizations
maybebasedon"""',""",l"",tribe,orrelgiousSect,ortheymayconsist
ofthemembersofa
certain profession. g-"rpi"r ql such organlutio* i""ruoe
the Academy of Management or the
United Auto Workers (UAW)''"
ThoughtPatternsThelogicalprogressionofreasoningvarieswidelya
roundtheworld
andgreatlyaffectsthecomrnunicationprocess.Managerscannotassu
methatothersusethe
same riasoning processes, as illustrated

uy trre e"p*ri"nie of a canadian expatriate
in Thailand:
White in Ttmiland ct Cailadian expatriate's
car wos hit by a Thai ntototist who had
crossed ou", tnr'-aouite titrc whii porrir[ orrotlrer vehicle'.Afier
failing
to establish
that the fautt toy *iri rn, Tttai clrivet: thevanadianflctgged
dou,n a policetnan' Afier
several ndttates of seentittgly futite cliscussion,
the caiadian pointed out the double
lire in the *iaaii "i
rn" riart"ancl asked the policennrt directll', ."what
do these lines
sigttify? " fn, p"oti"o*rt replierl' "They iniicate
the center of the road and ctrc therc
solcattestablislljttsthowfarthea'ccidentisfromthatpoint.,,TheCan
a.dianwgs
silent. It lrud never occurred to him that the
doible line might not t?Lean "no passing
allowecl'2s
IntheExhibit4-
2scenario,perhapstheAmericandidnotrealzethattheGreekemploy
ee

had a different rationale for his time estimate
for the job- Because the Greek was not
used to
havingtoestimateschedules,hejusttookagu"s,,wtrlctrtrefelthehadb
eenforcedtodo.
Roles Societies differ considerably in their
perceptions of
1
manager's role' Much of the
difference is artribu;i; ro their p"r""piion, oi wtro
strouto make the decisions and who
has
responsibility ro, *trui. In the Exhibit 4-2 example,
the American.assumes that his role as
man-
ager is to delegate resfonsibility, to foster
autonomy, ancl to practice participative
management'
He prescribe* ,t," ,oi"'or the employee *ith;;;;t";onsideration
of whether the empioyee will
unclerstand that role. The Greek's fi'ame
of ."ftt"nt" leads him to think that the manager is
the

boss and should give the order about when
to have the job completed' He interprets the
t
i
f
:
$
i
,i
i
I
:
'.:
i
i
r1i
:1:
:.t
Chapter 4 ' Communicating Across Cultures 131
American,sbehaviorasbreakingthatframeofreference,andtherefor
ehefeelsthattheb"::^i
,.stupid and incompe,"nr io. gi;ing t im rhe wrong
order and lor 1ot

recognizing and apprect-
ating his accomplishm"n,. ittJ*u,iug"r si,outO ftui"
considered what behaviors Greek
workers
would expect of him unJ in"n either should have
played that role or discussed the situation
care-
fully, in a training mode'
Langr"iageSpokenorwrittenlanguage,ofcourse,isafrequentcauseo
fmiscommunl-
cation, stemming tiom a person,s inabiiity to speak
the locai language, a poor ot too-literal trans-
lation, a speaker,s failure'to explain idioms, o,
u f"rron missing the.meaning conveyed
through
body language or cel.tain symbois. Even among "ount
i"' that share the same language' problems
can arise from the souttetie, and nuances inherent
in the use ofthe language' as noted by George
Bernard Shaw: "Britain and America are two nations
separated by a common language'" This
problem can exist even within the same country among
sutcultures or subgroups'21

Many international executives tell *ori", uuorr"tost business
deals or lost sales because of
communication blundem:
WhenPepsiCola,sslogatt,,ConteAlit,ewithPepsi,,wcsintrodttcedi
nGermany,the
co'?lparlyleartleeltltat"tlteliterclGernwtttrunslationaf.comealiye'
,is',coneout
of the grave."
AU.s.clirlittefotlttdalackofdemandftlrits,,renclezl,ouslounges,,ot
tits
BoeingT4Ts'Theylaterlearnedthat,,rcndezvotls,,ittPortugueseref
erstoa'looftL
that is retfietl t'bt Prcstiuttion'22
Morethanjustconveyingobjectiveinformation,ianguagealsoconve
ysculturalandsocial
understandings fi'om one generation to the
n""i' n"u*pi"'-of tto* language reflects what is
impoftant in a society ln"t.rt" the 6,000 different Arabic
words used to describe camels and their
parts and the 50 or more ciassifications of rnn* u*J by the
inuit' the Eskimo people of Canada'
Inasmuchaslanguageconveysculture,technology,andpriorities,ital
soServestoseparatg
and perpetuat" ,ub",rlt.,."L r. rrraiu, 14 official una mu:"y
unoffrcial
languages ate used' and over

aOOiungoug.s are spoken on the African continent'
Because of increasing workforce diversiiy around
the wo1d, the international business
rnanager will have to deal iittr a medley of tanguages' For
elamPle',
assembly-lin€ workers at
the Ford plant in Cologne, Germany, ,p"* 1'u*i"rtt a"nd Spanish
as-well as German' In Malaysia'
Indonesia, and Thailand, many of the buyer't una
,tualtt are Chinese' Not all Arabs speak
Arabic; in Tunisia and Lebanon, for example, French
is the language of commerce.
In North Africa-Morocco, Tunisia' Algeria' Libya'
Egypt-people are used to'doing
business with tsurope and the United States.
p"Jpi" in rU*o""o, elgeria' and Tunisia' with their
history of French ,ut", u* familiar with the uuti*tt practices
in Europe-they speak French and
use the metric system, for example. Egypt has
a simitr history with the British and so its citizens
comrnonly speak English as th;ir ,""onA^tunguug".
gg'pt also has a close political relationship
and business ties with the United States'z3

International managefs need either a good command
of the local language or competent
interpreters. The task of Jccurate translation to
bridge cultural gaps is fiaught with difficulties'
as
Joe Ronano, a pal-t'ner of High Ground, u,, u*.rgin.g
technologY-marketing company in Boston,
ibund out on * ourine.. irip io Tai*an, how "lorl"
a on"-ryllable slip. of the tongue can come
to
toryedoing a deal. He noted that one is supposerl
to say 'au-tan,' meaning 'Hello, N.' 1' Boss'' But
instead he said 'Lau-ban ya," which means
'Hello, wife of the boss'" Essentially Mr' Romano
called him a woman in front of twenty senior Taiwanese
executives' who all taughed; but the boss
was very embarrassed, t""ou'" "'"n
in Asia f'aue a very macho attitude'24
Even the direct translation of specilic words does not
guarantee the congruence of their
meaning,aswiththeword..yes,'usedbyAsians,whichusuallymeanso
nlythattheyhave
heard you, an<1, olten, ,t uirrr"v are too prrir" ir airugree. The
chinese,

for example, tfuough
years of polrtical "on'*t,
f'uve Uuitt into their ::"ti'i1".1t1":::ti*"
a cautionary stance to
avoidper.secution.byprofessingagre€nentwithwhateveropinionw
asheldbytheperson
questioning them'l: i . : , ..,^-^+^A i-.roo,-l o. *. indirecf
exDres-
sometimes even a direct statement can be misinterpreted
instead as an indirect expr
sion, as when a German businessman said
to his Algerian counterpart' "My wife would love
something like that beautiful necklace your wif'e
was**earing last night' It was beautit'ul'" The
132 Part2 ' The Cultural Context of Global Management
next day the Algerian gave him a box with the necklace
in it as a gift to his wife' The Algerian
had interpreted the compliment as an indirect way of expressing
a wish to possess a similar
necklace. The Getman was €rnbaffassed, but had io accept
the neckiace' He realize he needed
to be careful trow he expressed such things in the future-such
as asking where that kind of

jewelry is sold'26
^r,. .-.L^l +r.^ rlotanar rrrar 'n the com-
Politeness and a desire to say only what the listener wants
to hear creates nolse I
munication plocess in much of rhe woild. often, even a clear
translation does not help a person
to understand what is meant because the encoding process
has obscured the true message' With
the poetic Arab language-replete with exaggeration, elaboration,
and repetition-meaning is
attributed more to how iomething is said rather than what is
said.
Businesspeople need to consider another dimension of
communication
style that can cause
noisewhetherinverbalornon.verballanguage-
thatofinstrunlentalversLlsexpressivecomlnu-
nicators. Expressive communicatorr-_ruih is those from Russia,
Hungary,
Poland*are those
who make their communications personal by showing their
emotions
openly or using emotional
appeals to persuade others. This compare, tltr, intttu*ental
communicators-whom

we find as
one moves west and north, such as in tte Czech Bepublic'
Slovenia;
ernphasis is on the content
of the communication, not personal expressions'2?
For the American supervisor and Gr"ek employee cited in
Exhibit 4-2, it is highly likely
that the American could have picked up some cues from the
employee's body language' which
probably implied problems with the inierpretation of meaning.
How might body language have
created noise in this case?
Nonverbal comraunication Behavior that communicates
without words (although it often
isaccompaniedbywords)iscallednonverbalcommunication.People
willusuallybelieve
what they see ovef what they hear-hence tbe expression,'A
picture is wo(h a thousand words"'
Studies show that these subtle messages account
for between 65 and 93 percent of interpreted
communication.28 Euen minor variations in body language,
speech rhythms' and punctual'y:!':t
example, often cause mistrust and misperception of the
situation among cross.natlonal paflles._.

The media for such nonverbal communi"uiion can be
categorized
into four types: (1) kinesic
behavior, (2) proxemics, (3) paralanguage' and
(4) object language'
The term kinesic behavior ,."i".Jo communication through body
movements- posture'
gestures, lacial expressions, and eye contact. Although such
actions
may be universal' often their
meaning is not. Because kinesic systems of meaning are
culturally specific and learned' they
cannotbegeneralizedacrosscultures.MostpeopleintheWestwouldn
otcorrectlyinterplet
many Chinese tacial expressions; sticking ouittt" ten'!=
expresses
surprise' a widening of the
eyes shows anger, and scratching the earsLd cheeks indicates
happiness'3O Research has shown
for some time, however, that most people worldwide can
recognize
displays of the basic
emotionsofanger,disgust,fear,happiness,sadness'surprise,andcont
empt.-.
visitors to other countries must be careful about their

gestures and how_they might be
interpreted. In the united States, for example, a common
gesture is that for' "o'K.''-making a
circlewiththeindexfingerandthethumb'Thatisanobscenegestul.eto
theBrazilians,Greeks
and Turks. on the other hand people in Japan may
point with their middle finger' considered an
obscene gesture to others. To Arabs, showing ii,e ,otes
of one's feet is an insult; recall the
reporrer who threw his shoe at President Bushln late 2008
during
his visit to lraq' This was' to
Arabs, the ultimate insult'
Manybusinesspeopleandvisitorsreactnegativelytowhattheyfeelar
einappropriatefacial
expressions, withoui uniersianding the culturai meaning
behind them' In his studies of cross-
cultural negotiations, Graham observed that the Japanese
leel uncomforlable when faced with the
Amedcans' eye-to-eye posture. Tlt"y a." taught since childhood
to bow their heads out of humility'
whereas the automatic response of Americais is
"look at me when I'm talking to you!"32
subtle differences in eye behavior (called oculesics)can
throw off a communication badly

iftheyarenotunderstood,E-
yebehaviorincludesdifferencesnotonlyineyecontactbutalsoin
theuseofeyestoconveyothermessages,whetherornotthatinvolvesm
utualgaze'EdrvardT'
Hall, author of the classic The Silent t nguogu,explains the
differences in eye
contact between
the British and the Americans. During lp"i"h, Americans will
look
straight at you' but the
British t *"f fou. atrenrion by lookin"g away. The British will
look
at you when they have
finished speaking, which signals tt ui it i, youi tu* to talk' The
implicit rationale
for this is that
you can't interrupt people when they ut" not looking at
you'33
It is helpful for u.S. managers to be aware of the many cultural
expectations regarding
posture and how they may be intelrpreted. In Europe or Asia,
a relaxe4 posture in business meet-
ings may be taken us uui **nrr"r* o, the resutt o? poo.

upbringing-
In Korea, you are expected
to sit upright, with f-eet squarely on the floor, und io ,p.*k
slowly,
showing a blending of body
and spirit.
Managers can also familiarize themselves with the many
different
intefpretations-of hand
and finger signals arounrl the world, some of which may
represent
obscene gestures' of course'
v,,e cannot expect to change all of our ingrained, natural tnesic
behavior,
but we can be aware ol'
x,hat it means to others. We also can learn to understand the
kinesic
behavior of others and the
role it plays in their society, as well as how it can affect
business
transactions' Misunderstanding
rhe meanings of boriy movements-or an ethnocentric attitude
toward the "proper" behavior-
,'an have negative repercussions'
Proxemics deals with the influence of proximity and space
on communication-both

personal space and office space or layout. Americans "*p""t
office layout to provide private
ipace for each person, and usually a larger and more private
space as one goes up the hierarchy'
in much of Asia, the custom is open office space, with people
it ali le'vels working and talking in
;lose proximity to one another. space communicates'power
in both Germany and the united
States, evidenced by the desire t* u .orn*l. office or on" on the
top floor' The importance
of
French officials, however, is made clear by a position in the
middle of subordinates' communi-
Jating that they have u
"entral
position in an information network, where they can stay
informed
ind in control.34
Doyoueverfeelvaguelyuncomfortableandstartmovingbackwardslo
wlywhensomeone
:s speaking to you? This ii because that person is invading your
"bubble"-your
personal space'
personal space is ,rttu.ony fatt"rned, and foreign spatial cues
are

a common source of misinter-
pretation. When someon"i*".* aloof or pushy] it otten means
that she or
he is operating under
subtly different sPatial rules.
HallandHallsuggestthatculturaldifferencesaffecttheprogramming
"flth".t:i:":^11d
:hat space, perceived by all the senses, is regarded as a form
of tenitory to be protected'" Sou{'h
"mericans, southern und Eurr.rn Europeans,
Indonesians, and Arabs are high'contact culturesr
rreferring to stand close, touch a great deal, and experience
a "close" Sensory involvement' Latin
Americans,forexample,havea-
highlyphysicalgreetingsuchasputtingtheirarmsarounda
;olleague,s back and grabbing him by the arm. Onlne other
hand, North Americans' Asians' and
orthern Europeans are lorv-contact cultures and prei'er much
less-sensory involvement' stand-
:ng farther apart and touching far less. They have
ai'distanf'style
ofbody language' In France' a
:elationship-oriented culturJ, gooO friends greet members of
the opposite sex with a peck on
:ach cheek; a handshake is a way to make a personal connection'

Interestingly, high-contact cultures are mostly located in
warmer
climates' and low-contact
:ultures in cooler climates. Americans are relativlly
nontouching,
automatically standing at a
listance so that an outstretched arm wiil touch the other person's
ear'
Standing any closer than
;hat is regarded as invading intimate space. However,
Americans
and Canadians cefiainly expect
i wafrn handshake ancl ma'ybe a pat on the back fi'om closer
friends, though not the
very warm
Jouble handshake of the (paniards (clasping the forearm with
the
leit hand)' The Japanese'
;onsiderably less haptic (touching), do not shake hands; an
initial
greefing between a Japanese
and a spanish businessperson would be uncomfortable fbr both
parties if they were untrained. in
iultural haptics. The Japanese bow to one another-the depth of
the
bow revealing their relative

social standing.
When considering high- and low-contact cultures, we can $ace a
correlation
between
Hofstede,s cultural varia*ntes of individualism and collectivism
and
the types ofkinesic and prox-
emic behaviors people display. Generally, people fiom
individualistic
cultures are more remote
and distant, whereas those from collectivist "uitor=,
a1e interdependent: They tend to work' play'
live, and sleep in close proximity.36
The term paratanguagu r.f".* to how something is said rather
than the content-{he
rate
of speech, the tone and inflection of voice, other noises,
laughing,
or yawning' The culturally
awal.e manager learns how to interpret subtle differences in
paralanguage,
including s-ilence'
Silence is a powerfui communicator. It may be a way of saying
no, of being
offended, or of
ivaiting for more information to make a decision. There is

considerable variation
in the use of
silense in meetings. While Americans get uncomfbrtable after
10 or 15 seconds
of silence'
Chinese prefer to think the situation over for 30 seconds belore
speaking' The typical scenario
134 Part 2 ' The Cultural Context ol Clobal l'lanagernent
between Americans and chinese, then,
is that the American gets impatient' says'sornething
ro break rl.re silence, and off'ends il;;i;;;tf int"..upting
f,i' ot' her chain of thought and
comforr level with the subject.3l Graham, a researcher
on iiternational negotiations' taped a
bargainirrg session l.rel<l at Toyo.u,, u.s. heaclquarters
in California. The U.S. executive had
macle a proposal to open u ne* produ"tion facilii,v in
Brazil and was waiting 1or a response from
the three Japanese executives, rvho sat wilh lowered
eyes and hands tblcled on the table' Afier
about 30 Seconds-an eternity to Americans, accustomed
to a convelsational response time of a
few tenths of a second-the American bluited out that

they^were getting nowhere-and the
meetingende<linastalemate'Moresensitivitytoculturaldifferences
incomnrunicationmight
have iecl him to wait longer or perhaps to proinpt some
further response through another polite
question.3S
^- --+^-ior n,rrrrrro rel,e
' :ate through
Theterrnotrjectlanguage,ormaterialculture'rel.erstohowwecomm
unlc
materiaiartifacts,whetherafchitecture,officedesignandfurniture'cl
othing'cars'01'cosmet-
ics. Material culture comrnunicate, .'rru, people nlta ur
impofianl.
In the united States' for
example, sotneone wishing to convey his important
status and wealth would show guests his
penthouse oJii"" o,
""p"nJiu"
car. In Japan, u busin"srman presents his business
card to a new
contact and expects the receiver ro *,uiy ii and appreciate his
position' In Mexico' a visiting
international executive or salesperson is advised
to^take time out, Lrelbre negotiating business'

to show appreciation for the surrounding architectur,e,
which is prized by Mexicans' The
importance of family to peclple in Spain und *u"t, of Latin
America, woulrl be conveyed by
family photographs around the oflice and therefore an
expectation that the visitor would
ennuire about the familv.
Tin-ie Another variable that cotnmttnicates culture is the way
people
regard and use time
(see also Chapter 3). To Brazilians, relative punctuality
communicates
the level of importance of
those involved. To Midcile Easterners, time is something
controlled
by the will of Allah'
To initiate eft'ective cross-cultural business interactions,
managers
should know the differ-
ence betwee n nronocluottic tinte systems and pob'chronic tinte
systerls
and how they affect
communications. Hall and Hall explain that in monochronic
cultures
(Switzerland' Germany'

and the united states), time is experienced in a linear way, with
a
past, a ptesent, and a future'
and time is treated as something to be spent, saved, made up,
or wasted. classified and compart-
mentalized, time serves to ordei life. This attitude is a learned
part of western culture, probably
starting with the Industrial Revolution. Monochronic people,
found
in individualistic cultures'
generally concentrate on one thing at a time, adherc to time
commitments,
and are accustomed to
shon-tenn relationshiPs.
In contrast, polychronic cultures tolerate many things occurring
sitnultaneously and
emphasize involvement with people. Two Latin friends, for
example,
will put an important con-
versation ahead of being onii,nl rut a business meeting, thus
communicating
the priority of
relationships over mateiial systetns. Polychronic people-Latin
Americans,
Arabs' and those
from other collectivist cultures-may focus on seuerallhings at

once,
be highly distractible, and
change plans olten.39
The relationship between time and space also affects
communication'
Polychronic
people,forexample,arelikelytoholdopenmeetings,movingarounda
ndconductingtrans-
actions with one party anil then another, rather than
compartmentalizing
meeting topics' as do
monochronic PeoPle.
Thenuancesanddistinctiohsregardingculturaldil'ferencesinnonver
balcotnmunication
ar-e endless. The various forms are iisted in Exhibit 4-31 wise
intercultural managers will take
careful account of the role that such differences might play'
What aspects of nonverbal communication .igt't have created
noise in the interactions
between the American supervisor and the Greek employee
in Exhibit 4-27 Undoubtedly' some
cues could ha'e been picked up fi'om the kinesic b"haulot of
sach
person' It was the responsi-
bility of the rnanager, in particular, to notice any indications

from
the Greek that could have
prornpted him to
"1,ung"
ii,
"oro-unication
pattern or assumptions' Face-to-face communica-
don permits the sender of the message to get immediate
feedback,
verbal and nonverbal' and thus
to have some itlea as to how that message is being received and
whether additronal informatiott
is needed. what aspects of the Greek employee's kinesic
behavior or
paralanguage might have
been evident to a more culturally sensitive manager? Dicl both
parlies' sense o1'time aff'ect the
communication Process?
iXHlslT 4-3 Forms of Nonverbal Communication
a
Facial expressions

Body posture
Gestures with hands, arms, head, etc'
Interpersonal distance (proxemics)
Touching, bodY contact
Eye contact
Ciothing, cosmetics, hairstyles, jewelry
p"t^f"-!""g" (voice pitch and inflections, rate of speech' and
silence)
Color symbolism
Attitudetowardtimeandtheuseoftimeinbusinessandsocialinteracti
ons
I Food symbolism and social use of meals
{ontext
East Asicrns live itt rclatively cottplex social networks tvith
prescribed role relations;
attertioil to cotftext is, the'r.efore, important fot' their e.ffective
functioning'
In con-
trust, tr)estet-trcrs liye in less ionst,ainirtg social woryls that
strcss
independence and
allow them to pay less attentiotl to context'
RICHARD E' NlseErr'
September 200540

Amajorcliff.erentiatingfactorthatisaprimarycauseof.noiseintheco
mmunication
:rosess is that of conr""t-*iti"h actually in"orpo.ut". many of the
variables discussed earlier'
il;;;;;;;iin *rrt.r, rhe communication takes place aff'ecti the
meaning and
interpretation of
:he interaction. cultures are known to be high- or low-context
cultu[es, with a relative range in
r.r*.""i1f" high-context cultures (Asia, the Middle East, Africa,
and the
Mediterranean)'
ielings and thoughts are not explicitly expressed; instead, one
has to read between the lines
;nd interpret meaning fro.n on"i, ggneral understanding. Two
such high-context cultures are
:hose of South Korea and Arab cultures. In such culturei,
key information is embedded in the
;ontext rather than made explicit' People make assumptions
about what the *:t*i"--T:,1i-
lhrough their knowledge of the person or the sulaoundings..In
these cultures' most communrca-
:ion takes place within a context of extensive information
networks resulting from close

:ersonal reiationships. See the following Management
Focus for further explanation of ihe
.1sian communication stYle'
In low-context cultures (Germany, Switzerland, Scandinavia,
and North America)'
;.here personal and business relationships afe more
compartmentalized,
communication
:$edia have to be more explicit. Feelings and thoughts
are expressed in words' and infor-
nation is more readily avaijable. Westerners focus niore on
the individual, and therefore tend
to view events as the result of specific agents, while easterners
view events in a broader and
Jnger-term context.4l , -.^..r -^^-r^ ^ l.^t ,rf,,nder-
In cross-cultural communication between high- and low-context
people, a lack of.undel
standing may preclude reaching a solution, and coirflict
may arise' Germans, for example' will
expect considerable detailed iiformation before making a
business clecision' whereas Arabs
rvill base their decisions more on knowiedge of the people
involved-the information is
present, but it is implicit. People in_low-context cultures, such

as those
in Germany'
Switzerland Austria, and the United states, convey their
thoughts and pians in a direct'
straightforward communication styie, saying something
like "we have to make a decision on
this today.,, People in high-context cultures, such as in
Asia, and, to a lesser extent' in England'
convey their thoughts i"n a more indirect, irnplicit mannel;
this.means that someone from
Germany needs to have more patience and taci and be willing
to listen tbr clues-verbal and
nonverbal-as to their coiieagues' wishes'
People in high-context cultures expect others to understand
unarticulated
moods' subtle
gestures, and enuiionmentai clues that people from low-context
cultures
simply do not process'
Misinterpretation and misunderstanding often result'43 People
from high-context cultures
lSZ Part2 ' 'I'he Cultural Context ol Global Management
As illustrated in the opening profile, global managers

negotiate with parties in other countries to
make specitic plans for strategies (exporting, ioint ventures,
acquisitions' etc') and tbr continuing
operations. lviit" ttt" complJxities of "ro,l-",ttora1
negotiations among firms atounrl the world
present challenge enough, managers such as those tbr
BP may also be tacecl with negotiating
with government-or.vned companies. Google's negotiations-with
the Chinese government' as
anothel.example, encled in a compromise irat to enter the
Chinese
market the cornpany had to
obey china's censorship laws and agfee to purge its search
results of any websites disapproved
of bY the Chinese government'z
Managers must prepare for strategic negotiations. Next the
operational details must be
negotiatecl-the staffing of key positionJ tn" ,Jut"ing of
raw materials or component pal'ts' and
the repatriating of profits, to name a few' As globalism
butgeons' the ability to conduct suc-
cessful cross-cultural negotiations cannot be overemphasized.
Failure to negotiate productively
willresultinlostpotentialalliancesandlostbusinessatworst,andcont

'usionanddelaysatbest.
nuring il pro."r, of negotiation*whether before, during, or after
negotiating
sessions-.
allkindsofdecisionsaretnacle,bothexplicitlyandimplicitly.Aconsi
derationofcross.cultural
negotialions must therefore include ttre various decision-
making
processes that occur around the
world'Negotiationscannotbeconducterlwithoutdecisionsbeingnra
de.
This chapter examines the processes of negotiation and decision
making as they apply to
international and dornestic cross-cultural conteits, The objective
is a better understanding of
successful management'
filffiffi*TFATI&ru
Implementing strategy depends on managementt ability
to negotiate productively*a skill widely
considered one of the most important in international
business' In the global arena' cultural differ-
ences pr.oduce gfeat ditticulties in the negotiation
process' Ignorance of.native bargaining rituals'
more than any other single factor, accounts

for unimpressive sales effolts'3 Important differences
in
the negotiation ptocess from country to country include
(1 ) the amount and type of preparation
for
a negotiation, (2) the relaiive emphasis on tasks versus
interpersonal relationships, (3) the reliance
on general principles rather than specitic issues,
and (4) the number of people present and the
extent of their influence.4 In every instance, lnanagers
must familiarize themselves with the cultural
background and unOertying motivations of the. riegotiators-and
the tactics and procedures the'v
use-to control ttre processl make progress, and therefore
maximize company goult:
- ---":^^ ^!tr
The term negotiation describes the process of discussion
by which two or more partles alm
to reach a mutually ".r"pi"ui"
agl€ement. For long-term positive relations' the
goal should be to
set up a win-win situatlon-thatls, to bring about i settlement
beneficial

to all parties concerned'
This process, difficult *o,rgt", when it takes place among
people of similar backgrounds' is even
more complex in internaaio*nal negotiations because
of Oitt'erentes in cultural values' lifestyles'
expectations, verba] and nonverbal language' approaches
to formal procedures, and probiem.
solving techniques. The complexlty is heighten"i *h"n
negotiating
across borders because of the
greater number of stak"hold*rs involved. These stakehold*t*
ut" illustrated in Exhibit 5-1' In
preparing for negotiations, it is critical to avoid projective
cognitive
similarity*that is' the
EXI'il8lT 5-1 Stakeholders in Cross-cultural Negotiations
Heodquorters iHQI emPloYees
Suppliers
Home government
;r'
' HomeiHQ)
counirv '
"'"
1

Home consumers
lnvestors
Aliionce portners
Conirocbrs
Firm
negoliolors
All citizens
Speciol interest grouPs
Host governmenl
Distributors
Expotriote emPloYees
: Host
i county
Host locol emPloYees
Host consumers
Chapter 5 " Cross-culturai Negotiation
arid Decisiou Making 153
assumptionthatotherspefceive,judge,think,andreasoninthesamew
avwhen,inl.act,theydo
nor because of ctilerentlit .iiriii""o practical
*tiu"n".'' Instead' astute negotiators
empatheti-
cally enter into the prluur"-*o.fa
or cuitural 'put"

of their countelparts' while willingly
shaltng
;;il' ;;" view o[ tlrc situation's
TF*E NEGSTIATIOIT PR*CES5
-rhe negotiation process comprises
f'::'Tq:l *:,:'Ytl-,*,-l;"Jff1ff:l$'.::1'l"tf ili
.Hfi?HHJ?::"trifi JG,"f i';.;,9y,,'ilii""i::::i.-"?";:ili:,T,ff ff:#,ffi
*Ti"l ;T:i;ili,illiiiil'xii;'ilil' ];; il 1r;,x ff "*:"ff
;''1f'::i:iJ:3;tr"J;levent: (1) preparation, (2) retatronsnrp
uurru,rts' Jd
;;;;;;, in r-eality these are seldom dis-
i+i p"tt""t*n, and (5) concessions
t"l::::::."
-o.r rrqn temoorarily revert
to an earliel'stage
ill"iH:::tl; tri"i1*le;:;l;'
"ruill;::{**:
:T#:T:';::"1#.:i:Tl:::::^n:tinct stages but rather tend to overtap;
Irsgulr4rwrr
ru"l*irrt""
,.o""r. inro stages to discuss the
with that in mind' it is useful to bieak.dow" :T
l:Tl:i:::"t:::T"*ect. so that they misht
fJ*Ji:l#il'*iii',ll-l:'i:ffi :i;i.]'.;;f ::iTTd*:Xmml;""$":lL?,:f il
;'J:"1*;l*lir?*;-:-;lT,HtlH:::'J;';;; '?-*"

i" s-niti, s-z and discussed in
the following sections'
Stage Sne: Fr*Paratlon
Theimportanceofcarefulpreparationforcross-
culturalnegotiations.cannotbeoverstated'Tothe
extenr that time pennits, a distinct
advantage ."" u" g"i""i if negotiators familiarize
themselves
rvith rhe entire conrex, il;;;i;;;nd ofiheir "ou,r"*.pun,
(no m.attlr where the meetings wiil
rake place) in addition ioit" Jp".ifi" ,uUl"riJi"
tJn"gotiut"O'.Because most negoliation
probrems are caused rrv"iiii"r"*es in culiurs";;;;;nd
environment' hours or days of
ractical preparation fbr negotiation
can be yr:T; ii tfrese-tactors are not
carefully considered''
Tounderstandculturaldifferencesinnegotiatingstyles'manlgersfirs
trrustunderstand
rheir own styles and rt"n J"r"r*ine
how thelidifferlrom the norm
in other countries' They
can do this by comparing profiies

of rhose p";;;; io u. ,u"""ttfui negotiators
in different
countries. Such profiles-r"fl"r, the
value *yt'**,'uttitoO"'' and-expected behaviors
inherent
in a given sosiery. o,r*r-rr"iirns of this
.;;r ;;;;;io" una .otput" negotiating
styles
around the world'
vAR€AELESlsTl-
lEruE&sTlAYlFlGpfis{€ssAdeptnegotiatorsconductresearchtode
velop
a profile of their.""";;;;; so rhar they know,
in *or, ,]tuu,ions, what to expect' how to
pre-
sare, and how ro ,.u"r.-s';;iuit
5-3 shows 12 ;;i;;o "onrioe.
when preparing to negotiate'
These variables can, to a grear degree,
h"lp ;;;;;;, *o"tuuna the delp-rooted cultural
and
narionai morivations ancl iraclitionut
pro.*rr"r-.uniJ'ing negotiations wit' people

from other
:ountries'
f,X*'ltSlT 5-2 The Negotiation Ptocess
PrePorotion
RelationshiP building
Exchonqe ol tosk-relqted
iiformotion
Persussion
Concessions ond
ogreement
EKHlBll $-3 Variables in the Negotiation Processs
154 Part 2 ' The Cultural Context of Global Management
l,Basiccorrceptionofnegotiationp'ocess:Isitacompetitiveprocesso
raproblem-
solving approach?
2, Negotiator Selectiotl critefia: Is selection based on
experience'
Status, expefiise,
personal attributes, or some other characteristic?
3. Significance of rype of issttes: Is it speciflc' such as
price' or is the focus on

reldionshiPs or the fomat of talks?
4.ConcentwithprotacohWhatistheimportanceofprocedures,social
behaviors,
and so forth in the negotiation process?
5, Complerity of communicative context: What degree of
reliance is
placed on
nonverbal cues to interpret information?
6,Natureofpersuasivearguments:Howdothepartiesattempttoinflue
nceeachother?
no tney rety on rational arguments, on accepted tradition'
or on emotion?
T.Roleofifidividuats'aspiratiotts,'Aremotivationsbasedonindivid
ual,company'or
communitY goals?
8, Bases of trust: Is trust based on past experience' intuition' or
rules?
g. Riskaaking propensity: How much do the parlies try to avoid
uncertainty in trading
information or making a contract?
ilt,Yalueoftime:Whatiseachparty'sattitudgtowartltime?Howfasts
hould
negotiations proceed, and what degree offlexibility is there?
lL.Decision-ntakingsystem:Howdoeseachteamreachdecisions-

byindividual
determination, by majority opinion, or by group
consensus?
12. Fotvt of satisfactory agreeme'fi: Is agreement
based on trust (perhaps just a
handshake), the credib"ility of the pu'ti"' commitment' or a
legaily binding contract?
After developing thoughtful profiles of the other
party or parties, rnanagers can plan for the
actual negotiation meetings, at the same time.re*aining
op"tt to realizing that specific people
may not fit the assum"o-.-Jturut prototype. Prior to
the Leetings, they should find out as mucl:
as possible about (1) the kinds tf OemanO, that might be made,
(2) the composition of the
,,opposing,' team, and (:) tr," relative authority that the
members
possess' Atier this' the man-
agers can gear rheir ""glri"ii""
tirategy specifically to the other side's lirm' allocate
roles tc
diiferent team members, decide on concesslons, and
prepare an alternative action plan in case a
ncgoliated solution cannot be lound'v

Followingthepreparationandplanningstage,whichisusuallydoneat
thehomeoffice.
thecoreoftheactualnegotiationtakesplaceon-
*i"'"'i"thetbreignlocation(ofatthemanager'i
home office if the other tcam has decided to travcl
there)' In some cases' a compromise on the
location fbr negotiations can signal a cooperative
strat€gy, whi{rh weiss calls "Improvise an
Approach: Eff'ect Symphony"-a strategy availabie to
r'-elotiators familiar with each other's
culture and willing to put negotiation on an equal fboting.
weiss gives the following example o:
this negotiation strategy:
For their ilegotiatio,ls ot)er constrltction of the tuwrcl
unclet the English chanrrcl'
British and Frettch rcprcSelttuti|,,, o|,",d to panitiott talks clnd
alternate the sile
lsettveett paris anrt Lindon. At each site, the
negotiatars were to use established,
local rtals, irtcluding tlte langtrage ' ' ' thus puictuatittg
approaches by time and
,pnrr,l0
Inthisway,eachsidewasputintothecontextandthescriptoftheotherc
ultureabouthali

the time.
The next stage of negotiation-often given short shrift by
Westerners*is that of relation-
ship building. ln most p*l "f
the world, this srage usually has alrearly taken
place o' is concur-
renl. with other Pleparations'
Chapter 5 ' Cross-cultural Negotiarion and Decision
Making 155
Stage Trruo: RelationshiP Building
Relationshipbuildingistheprocessofgettingtoknowone,scontactsi
n-ahost:*":ly^i,1
iuilding mutual oor, U"for" "-turt
ing on buriri"r, discussions and transactions'
This process ls
iegarded with much more significonr" in most farts
of the world.than
jt is in the United States'
r*.s. negotiarors are, g";;;l-t i"aking, objectir" uuo* rhe specific
matter at hand and usually
:l.anttowastenotimeingettingdowntobusinessandmakingprogrcss.
Thisapproach,well

understood in the United States, can be Oirurt
ou,li the foreign negotiators want to take enough
iime to build trust and respect as a basis ro,
n"gotixing contr;b' i1,t_u"n cases' American effi-
:iency interferes with the patient development of
a mutually trusting relationship*the very
;ornerstone ofan Asian business agreement'' ents to individuals,
rather
In many countries, such as Mexico and C^hina'
personal commltmr
:han the legal system, t'o.* ,fr" basis for the enforcement
of contracts' Effective negotiators allow
rlenty of rime in rheir schedules for such
t"rJ""Jip U"'lUlT^::t: bargaining partners' This
lrocess usually takes the form of social €vents' Jgur:,
and.ceremonies' along with much nontask
rounding-
general.politeconversationandinformalcommunicationbeforemee
tlngs-l
r..hile all parties get to know one another' In such cultures,
one patiently waits for the other
rartv to start actual business negotiations, u*r"
ttrutrelationshipbuilding
is, in fact' the first

il'J";;;;;;;;r.ii i, i, ur.i1y recommended that managers
new to such scenarios use an
i*termediary-ro*"on" *ho alreaiy has the trust ana
,"rp""iof the foreign managers an-d who
ireretore acts as a
..relationship bridge." Middle Easterners, in particular, prefer
to negotlate
*rough a trusted int"r*"aiur.y, and foi them as
well, initial meetings are only for the purpose
of
:ettingacquainted.a,uu,aouu,inesswiththeperson,notthecompany'
andthereforemutual
:rust must be established.
In their best seller on negotiatio n, Getting ro Yes,
Fisher and Ury point out the dangers
of
rot preparing well for negotiations:
Irt persian, tlte wotd
,,compromise" does not have the English meaning of a midwal'
solutiotr whictr both sides can accept, but only
the negative meaning of surrcnderirtg
one's principles. Also, "ntecliator" nrcans
"meddle|" soweone who is barg'irtg itt

uninvitecl'In]gS0,tJnitedNatiottsSecretary.GenetulKuftWatdhei
m.flewfulranto
deal with *, noriioir"rituotiou. National liartian radio and
television
hoadcast itt
persicut a comnlent he wqs said to have made upon his
arrival in Tehran: " l have
conte as a rtecliator to trork oLrt a comproruise"' Less
thaft an lwur later' his car was
being stoned b)'angtj lranians'|3
As a br.idge to the more formal stages of negotiations,
such relalionship building is followed
11 posturing*that is, general discussion that ses
tfr" tone for the meetings' This phase should
result
,:r a spirit of cooperation- ro n"tp ensure this result, negotiators
must use words like 'tespecf' and
'rnurual beneht,,rather;ha; unguage that would suggest
affogance,
superiority, or ufgency'
Stage Tt:ree: Exchanging Task-Related lnformation
in the next stage-exchanging task-related information-each
side typically makes a presentation
:nd states its position; a question-and-answer session

usually ensues' and alternatives are
jiscussecl. From an American perspective, this represents a
straightforward' objective' efftcient'
:nd understandable stage. However, negotiators
from other countries continue to 1nke a more
indi-
:ect approach at this stage. Mexican negotiators
are usually suspicious and indirect' presenting
iittie substantive materiaiand more lengthy,
evasive conversation' Ftench negotiators enjoy
debate
.:nd conflict and will often interrupt presentations to argue
about an issue even if it has little
:elevancetothetopicu"i"gp'*'"*"o.rn"Chinesealsoaskmanyquestio
nsoftheir*"":::i:''
and delve specifically unJr"p"ur"afy into the details
at hand; conversely' Chinese presentatlons
;ontain only vague and ambiguous material.
po, inrtun"", after about 20 Boei'g officials spent six
rveeks presenting masses ofliterature and technical
demonstmtions
to the Chinese' the Chinese
said, "ihank you for your introduction'"la
The Russians also enter negotiations well prepared and

rvell versed in the specific details
of the matter being presented. TJ answer their
(or any othet side's) questions' it is generally a
good idea to bring along someone with expertise to answer
any grueling technical inquiries'
Russians also put a lot of emphasis on protocol and
expect to deal only with top executives'
<-
156 Parl2' The Cultural Contextof Global
Management
Adlersuggeststhatnggotiatolsshouldfocusnotonlyonpresentingthe
irsituationand
needs but aiso-o-n showing un
una"*tunoing of their opponents"
viewpoint' Focusing on the
enrire situation confronring each
p";;;;;r;"rages the negotialors to assess a
wider range of
alternatives lbr resolution, rather
ttrui fi.iti"glh"mselues to their pt'econceived'
static posi-

tions. She suggests that to beI11"r, "tr*i".,
n"g"o,lu,o,, should prepare fbr meetings
by practicing
role reversal'1s
$tage Four: Persuaston r .r- -^*r^-
In the next phase of negotiations-persuasion*the
hard bargaining StafiS' Typically, both
parties
:
try to persuade tt e otk er iJu"r"p, *or. of ttreir._position
andlo give up some of their own' Often'
some persuasion has J;; ,k.n.g11"" b"f;;rh;
in soclal seitings and through mutual
contacts.IntheFarEast,detailsarelikely.on"*o'i.*aoutaheadoftimet
hroughthebackdoor
approach(houmani).'rorthemostpafi,however'themajorityoftheper
suasiontakesplaceover
one or more negorlarrng sessions.
Internarion;i;;;"t; usually find that this
process ol
;
bargaining and making .'orr."r*ion*
is fraught with difficulties because of
the different uses and t'

interpretation, oi u"ruuilnJnono".uut
u"rr*iorr. 'q.ithough
variations in such behaviors influ- I
ence every srage of ,h";;;;;;l"n process, ;;;;p1;;
a particularlv powertul roie in
per-
,
,,",i"","'p."i,tty;t,r,"yi,"noranticipated.-
^1^l.1.^',oo^fr.ertnintactics'whichski11ed
Studiesofnegotiatingbehaviorhave.revealedtheuseofcertaintactic
s,-l':1:l*j
negotiators recognize a;;, such as promise_s,
threats, and so on' other' less savory
tactlcs al.e :
someti,nes used in intemational negotiations.'.$1;;t"d
1:lf":'"',:i:i'.tlXj"liJi;tii,i'"-'*?i ,
ilffiHffi-,lri ilST;; .non, 6 mi siead "opp""" ",'"
del iberateiv'16 s ome nesotiators.
mav
give wrong or distorted factual intbrmation
o, ui" th" excuse of ambiguous authority-gtvtng
conflictingimpressionsaboutwhointheirp.tvr,u'tr'*powertoT1|"uc
ommitment.Inthe
rnidsr of hard bargaining, the

prudent lnr"rnuri'onJ-"n"g"t will follow
up on possibly mis-
ilil;;r""""'t*"::l'J:,T:'J,1;'iftT:ffi:18 nesotiarors in a srressrur
situation phvsi-
cany or psychologically ;';;i;;:ir eiinS .n
lt'*"tJf
'r."i'.
These include uncomfortable
room
temperarures, too-trrigtrt iighting,
.ud"n"rr, t;;;;;;;il and other irritations' Internationai
negotiators must keep i;;il' 6*:"-:' thil)l;;;;;il;;";
like dirtv tricks to Americans is
simply the way other cultures
conduct
""g"ri"ii"".r.-In
,otnt South American countries'
fot'
example, it is common;';;il;"""t,:]f misleading
or false intbrmation'
The most subtle behaviors in the n"gotluiion
pl;;":;'
in-1-o:.':1tn"
most difncult to deal

with, are usually
't'"
non"*Jof ****ug"'-th" ot" of voice intonation'
facial and body expres-
sions, eye contacr, d;;,';;;;tirni-ng ^or
trr"Jir.urrionr' Nonu"rbal behaviors'
discussed in
previous chapters, ^*
,;;*iJ aspectrif "ultur"
ur"a by people in their daily lives;
they are not
spccifically changed ,..in" O"-*"r", ol n.gotiuri*.
e*l"g thosc behaviors impacting negotra-
tions is the direct.o**unirurion
style' such as with Germans' compa|ed
with the indirect styie'
such as wirh Japanes.;i;;;;,;1ro,
ir.,. inai"iJooiltt-collectivism cultural
dimension is one
which greatly guides ;;;ffi":*:: or tr,. .Jatiue
motivation of personal self-intcrest
1n

individualistl. ,o";rtiJi,'r-; ;, the united
states; this compares with the
g.oup-interest
inAsiancuitwes,sothatnegotiatorswilllikelygivemoreimportancet
otheirsocialobligations;;;
" ""d' ;t;*:;m J" s be e n d i s c us.'" d ""'.,". IT"^:::' ii'jfi : :ilffi
JHiJl l,'i'
primary pulpose -"d";1y*;;11 stages of
the regotiation process' In particular'
persuaslon 1s an
integraiparlofttteprocess-
ofrnakingconcessionsandarrivingatanagreement'
Stage Five: eencessions and
Agreefllent
Inthelaststageolnegotiation-ctlncessionsandagreement-
tacticsvarygreallyacross
cultures. well-prepared iegotiators
ar. o*ure.oll various"concessitln stratesies
and have decided
ahead of time what their o-wn concession
,*or.gy **iiilt' putitiut wirh tie typical initial
posi-
tions that various paries ir" iit"ty to take,
,t.y?n"* ,t at Russians and chinese

generally open
rireir bargaining wirh *;;;;;;lions, asking to1.
*or. than rhey hope to gain' whereas
srvedes
"*rir ""n H1[T#lin:;[,fl'Jil':[l?,i','nT,to"u"r end resurrs are
auained bv starting. with
exu€mepositions'Withtlrisapproach'theprocessofrcachinganagree
menlinvolvescarefultim.
ing of rhe disclosure information and
of concesrl;;. M"t;piopt" i"tto have studied
negotiations
Chapter 5 ' Cross-cultural Negotiation and Decision
Making 157
believe that negotiators should disclose only tl're
intbrmation that is necessary at a given
point and
that they should ny to oltain intbrmation piece uy
piece to g'adually
.get
the whole picture with-
out giving away their goals or concession strategy'
These guildelines will not always work in inter-

cultural negotiations because the American
pro".,, of adiressing issues one at a time' in a linear
fashion, is not common in other countries o, culturer.
Negotiatirs in-the Far East' for example'
approach issues in a hollstic manner, deciding on the
whie deal at the end' rather than making
i ncremental concessions'
Again,atthefinalstageofagregment.andcontract,localpracticesdet
erminehowthese
agreements will be tonor"a]WnerJas Arnericans mke
contracts very seriously' Russians olten
renege on their ronrru.ir. ite Japanese, on the other hand,
consider
a formal contract to be
somewhat of an insult una u *urt. of time and money in legal
costs, since they prefer to operate
on the basis of understanding and social trust'18 Uore
attJntion to this and all the negotiation
phases might have led to befter results in the French-Chinese
joint venture discussed in the
rnanagemeni focus.
MANAGEMENT FOCUS
Cultural Misunderstanding-The Danone-Wahaha Joint
Venture in Chinale

SiiTJ!lJ?.?i;#,Hil;'rnJ ,o .ontinue to tester durins the oferations
phase one such rV
is the Sino-Frencn collaOoiaiion that *u, for*"Jty Croupe
Danone
(hereafter Danone)' and
Hangzhou wahaha crouJJo. tp',.ieaiter wnn). Danone
is one of the largest food conglomerates
from France. wahaha is china,s largest beverage company
that was started ln 1987 and was
controlled by the goverr*.ni of H'angzhou's S6tngit-tunq
District' From its inception' Zong
einghou ran the operations oi WHU.
riihen the com"pany ionverted itself into a private entity'
din6nou took the role of a minority
shareholder'.
The Danone-wnu bini u"nirr" was established in March
1996 and took the trademark
name of Wahaha n..url"u"o+'n; t;;;il;;;J visibilitv in the Chinese
market
ln emersing
markers, Danone gr.* l;.i.ui*g u niultitude of proiitable JVs. in
lndia,
Pakistan, Vietnam'
Columbia, and other.o*iri.r. Onihe other hand, WHH achieved
its market expansion and cor-

porate growth in Cfrina by iurning itself into a, nutlonal brand
and highly successful food and
beverage company. ff.l" O#"n*-Wihaha JV dealt with
the areas of food and beverages and grew
at a respectable rate. For Danone, this was a
good strategy to enter into china For wHH' the JV
heloed the company to make a linkaqe with a well known
global brand'
' "" r.r.oj"tilns iesulted in the foilowing salient features of the
JV:
Many cross-border joint ventures encounter
problems because the partners' differences ln man-
asement styles, corport,- .ittt"rltrlJt*ttltu tutJ i"i::
1""J::::::::".t:l* T:J:::il:$
1. ownership of the JV included foreign partners (51 percent),
wHH
(39 percent), and
emPloYees (1 0 Percent).
2. The JV encomprrr"J riu. entities: Hangzhou wahaha Baili
Foods, Hangzhou
wahaha Health
Foods, Hangzhou Wahaha Foods Co- Hangzhou Wahaha
Beverages
Co'' and Hangzhou

wahaha Quict rrozen iooor. ounon. uno i*tufine collectively
invested $70 million in the
five entities of the JV
3. As agreed by Danone. the day-to-day operations of the JV
resided with Qinghou'
As the JV's business operations expanded in china, activities
of Danone and wHH also
became intertwined uno.onipl."-ieaOing'to differences in
opinion,
corporate control' and man-
agement styles. Betwee" 1gt6 and 2006, the following chanqes
took place in the structure and
operations of the Danone-WHH JV:
1, Because of consumer demand and market growth, the
JV'soperations in china
witnessed
the emergence of 37 business entities. Oa-none attempted
to buy out Qinghou but the
negotiations were unsuccessf ul'
2, public rows erupted between the two companies when they
kept on blaming
each other
for breach of contract. Danone blamed
qin;nou for going outside of the contract and

profiting from 80 unauthorized businesses. fiis inctuaJd
misusing the Danone brand
and
its distribution sYstem in China'
158 Part 2 . The Cultural Context of Global
Management
3'ThedrsputebetweenDanoneandQlnghoubecameevenmoreperson
aIwhenDanonefiled
a law suit against qin"ghor;, *iie and iaughter
in a Lo, Angeles court regarding tlreir
busi-
ne:s interests uno unu'utilu'"J lv-'elated
dea{ings outside <>f !l:i"
4. Danone filed {or uroii*iion p'oceedings in Stockholm
in May 2007'
5. During the dispute, ;;;;;J.i; {iledlegal .iui*t
.gtintt ien business entities that were
beiieved to be contrJleO n1l wHn in Samoa
and the British Virgin lsland'
6. The Danone-wHH .;;;l;:.me so much .ru,oiLo
that Chinese and French governments
asked the .o*puniui to negotiate an
"amicable" resolution.

FromthishighlypublicizeddisputebetweenDanoneandWHH,welea
rnthefollowinglessons:
1. Cross-cultural misunderstandings and unfamiliarity
with the JV partner were at the heart
of this disput"' ai;;;;;; Inti*p|,*t't"iur tt/e ana
wHH s consistent qrowth in China
could have uu.n on.lt"ti.. irrr.r of this dispute since
Danone management was alienated
2. #[t ffi::; used media and pubric rerations campaigns in China
and western markets to
justify their urgrttnt', instead of having open neQotiations'
3. ln any JV retationsrrif-uuilding and "*.r,ung"'ot
pill"a-t"rtt"d information is critical in the
pori-it"gotiaion pi'Jt" tr'tt ii based on concessions
and agreement'
4, lt seemsthat oanon!anJwun tactea open communication
in their day-to-day manage-
ment of the JV Also important was the u*r of ,trti
that happened to be missing in the
partners' dealings '- -L'.^^-^-^*^rnia< n{ton hecome an
enension of their
5. According 1a China Economic Review' Chinese
companies often becom
founders, personal o"rirl"grCIi.g day-to-oa-y

Lrrin.tt operations. Most chinese businesses
do nor see u *uio,1;fi!,*,:";;;,,;;; ;1/^sj;;;;;i[
and en{orcement of rishts roreisn
partners must makJsuie that their oesignatea"m.""g.it
;"0 staff.members are included in
the day-to-day management o{ the
ry rn intJrnationii tnutrett. JV-related contracts
can be
abused and could r"ul io cross-cultural misunderstands
and operational disruptions'
6. Finally, in lvr, '"ut6'i'r'tip-uuirUing
takes trmJ an;;;# #"unt of interaction is needed
between ,r," pu|,ii"ri. in ii,. c-ase of
panone-wHH JV. partner conflict, face-saving
problems, nlu*"-gu;., and accusation, .outd
have been avoided had the two companles
communicated openly during
the n.go,,rion Jr,ase and a{terwards
Also it seems that
Danone ,"0 wHH lii ioi'r"no.,u."o ,n.it'i"i"-.;;^l
and high-context cultures and
management stytes that eventually
led to this conflict'

UniversitY CoPYright @- Wtttt." .*l"t".ly for this book by Syed
Tario Anwe
2009 by Syed Tariq Anwar' Used
with permisslon
U NPERSYANAIruG fttEGSTIATISru
sT'VLES
clobalmanagerscanbenefitfromstudyingclifferencesinnegotiating
behaviors(andtheunder-
lying reasons ror tt,pm),'*ti"t, "un
t"ip*,",n,"1;;;tr; *iat ls happening in the
negotiating
process. Exhibit 5-4 ,h;;;1;*" ""u*pt.,
or-JltrJrrnr"s among North American'
Japanese'
and Latin American styles. Brazilians,
for
"^u*'i",
generally have a spontaneous' passionate'
and dynamic style. Thcy are, very
talkativc, unJ'purtluturly use the
word "no" extenslvely-
more rhan 40 times per half,-hour
compared *ilrr"+.iii."s fbr Americans' and
only 1'9 times

f.r the Japanese. Th"y ;i;" aiii"'*url"ary rro*
Am".itans and the Japanese by their
use of
**i*tlu" pitysical contact'20 .,--^-^ T,.ar, r"q'e qnen
TheJapanesearetypicailyskillfuinegotiators.Theyhavespentagfeat
dealmofettme
and effort studying u.s.'Jutture and
business;;;;";t ;'h"n Americans have spent
studying
Japanese pracrices. ; ;il;i ""u*pt"
ot itris conlmst was apparent when
Charlene
Barshefsky-a rough A.;;;; internaiional iu*f".
who had never visited Japan before-was
sent there as a lrade "";;;;;;""d
had littte knowledge of its counterparts'
But Mr' okamatsu'
like most Japanese,"ril##,;;';; ;;iii"t *irr'
n*"rica' He ha<llive<l with his familv
in
New york fbr three years and had spent
*onyl.u.r handling bilateral trade disputes

between
the two countries. rr,e Oilf"r"nt styles
of the twt negotiators were apparent in the
negotiations'
Ms.Barshefskywantedspecificimportgoals.Mr.Okamatsuwantedt
otalkmoreabout
thecausesoftradeproblemslatherthansetspecilictargets,whichheca
lledthe..cooperatrve
-:-t'
'ti
i:l
'.p.i
.s!
./1:
+
i1:
North American
Chapter 5 , Cross-cultural Negotiation and Decision Making 159
Latin American
Japanese
gxHiBtT 5-4 comparison of Negotlation styles-Japanese, Notth
American' and

Latin American22
Emotional sensitivitY highlY
valued
Hiding of emotions
, Subtle Power PlaYs;
i conciliation
, Loyalty to emPloYer;
, employer takes care
I of employees
i Face-saving crucial; decisions
' often on basis of saving some-
I one frorn embanassment
I Decision makers openly
influenced bY sPecial
, interests
, Not *gu.n"ntative; quiet
, when Right
' What is down in writing
rnust be accurate, valid
Step-by-steP aPProach to
decision making
Good of grouP is the
ultimate aim
Cultivate a good emotional
social setting for decision

making; get to know
decision makers
Emotional sensitivitY not
highly valued
Dealing straightforwardlY
or ImpersonallY
Litigation not so much
as conciliation
Lack of commitment to
employer; breaking of ties
by either if necessarY
Decisions made on a cost-
benefit basis; face-saving
does not alwaYs matter
Decision makers influenced
by special interests but
often not considered ethical
Argumentative when right
or wrong, but imPersonal
Great imPortance given to
documentation as evidential
proof
Methodically organized
decision making

Profit motive or good of
individual is the ultimate aim
Decision making imPersonal;
avoid involvements, confl ict
of interest
Emotional sensitivitY
Valued
Emotionally Passionate
Great power plaYs;
use of weakness
Loyalty to employer
(who is often f'amilY)
Face-saving crucial in
decision making to
presewe honor, dignitY
Execution of sPecial
interests ofdecision
expected, condoned
Argumentative when right
or wrong; passionate
lmpatient with
documentation as

obstacle to understanding
general princiPles
Impulsive, spontaneous
decision making
What is good for grouP
is good for the individual
Personalism necessary for
good decision making
.":proach." Ms. Barshef'sky snapped that the approach was
nonsense and
"wouid analyze the
:r:t to death, rvith no link to future change "''
'-.* :;;il1frur"n.*, in philosophy ani style between the two
countries reflect ten years of
.lser and feelings of betrayal in traie negotiations. John Graham,
a California
prof'essor who
r-ts studied international negotiating styles, says that the
differences between
United States
:rd Japanese styles are *eli illurt.ateJ Uy ttreir respective
proverbs: the Americans believe
::at "The squeaking wheel-gets the grease," and the Japanese
say that "The pheasant
would
:,,.t be shot but for its cry."23-The Japanese are calm, quiet,

patient negotiators;
Ihey are accus-
:.-med to long, detaileO negotiating sessions. Whereai
Americans often
plunge straight to the
-iarter at hand, the Japanese instead pref'er to develop iong-
term, personal relationships'
The
-,rpanese want to get to know those on the other side and will
spend some time
in nontask
r.unding.
In negotiations, the Japanese culture of politeness and hiding of
emotions can be
dis-
:nncerting to Americans when they are unable to make
straightforward
eye contact or when the
,::paneseiraintain srniling faces in serious situations. It is
irrportant that Americans
understand
;rat is polite and what is offensive to the Japanese-and vice
versa' Amelicans must
avoid
,ir- thing that resembles boasting because the Japanese value
humility,
and physical contact or

:.,uching of any sort must be oolid.d.2n Consistent with the
culture-based value
of maintaining
-:rmony, the Japanese are likely to be evasive or even leave
the rootn rather than give a direct
.-g"i""'unr*.r.t'Fundamentai to Japanese culture is a concern fbr
the weltare of the group;
.:,:ithing that affects one member or part of society affects the
others' Thus, the Japanese
view
160 Part 2 ' The Cultural Context ol Global Management
decisions carefully in light of iong.tern.consequences;
they use objective, analytic thought
patterns; and they tate tiire for reflection'26
Further insighr into negotiatine',tyt", around the
world can be gained by comparing the
North American, Arab, and Russian styles. Basic
cultural values often shed iight on the way
information i;;;;;;";, *netner ano ho* .on.t"ions will be made'
and
the general nature and
duration of fhe relationship.For North Americans, negotiations
ale businesslike; tbeir t'actual

appeals are based on what ii,ey Ueti"ue is obiective inflrmation,
presented with the assumption
that it is ,nderstood by the otirer side on a iogical basis' Arabs
use affective appeals based on
emotions and subjective feelings. Russians "nt-ptoy
axiomatic appeals-that is' their appeals ae
basedontheidealsgenerallyacceptedintheirsociety,TheRussiansar
etoughnegotiators;they
stall tbr time until ih.y unn".u" western negotiators by
continuousiy
delaying and haggling'
Much of this approach 1s based on the Russian-s' different
attitude
towarcl tiure' Because Russians
trarlitionally oo^not subscribe to the western belief that
"time is money," they are tnore patient'
more determined, and more dogged negotiators' They
try to keep smiles and other expressions of
emotion to a minimum to present a calm exterior'27
ln contrast to the Russians, Arabs are more interested in long-
term
relationships and are'
therefbre, more likely to make concessions. Compared with
Westerners' Arabs have a casuai

approach to deadlines, and fiequently the negotiatois lack
the authority to finalize a deal'28
Suceessful Negotiators Arsund the Wclnld
Followingareselectedprofilesofwhatittakestobeasuccesst.ulnegot
iator,asperceivedi'-.
people in their home countries. These are profiles of American,
Indian, Arab, Swedish, al:
Italian negotiators, accotding to Pierre casse, and give
some insight into what to expect frc::
difl'erent negotiators and what they expect from others'29
AnnERICAN hiEGOTlATofig According to Casse, a successt'ul
American negotiator BCts !:
tbllows:
1. Knows when to comPromise
2. Takes a firm stand at the beginning of the negotiation
3. Refuses to make concessions beforehand
4. Keeps his or her catds close to his or her chest
5. Accepts compromises oniy when the negotiation is
deadlocked
6. Sets uf,t-," g"n".ul princiiles and delegates the detail
work to associates
?. Keeps a *u"i*u* of options open before negotiation

8. OPerates in good faith
9. ResPects the "oPPonents"
10' States his or her position as clearly as possible
11. Knows when he or she wishes a negotiation to move
on
12. Is fully briefed about the negotiated issues
1.3. Has a goo<1 sense of timing and is consistent
14. Makes the orher party reveal his or her position while
keeping his or her own position
hidden as long as Possible
15. Lets the other negotiator come forward first and looks
for the best deal
:NDtAru NE6oT;AToRs Indians, says Casse, often follow
candhi's
approach to negotiation,
which Gandhi called saryagruha,
i.fir.n"r, in a good cause." This approach combines strength
with the love of truth. The iuccessful Indian negotiator thus
acts as tbllows:
1. Looks for and saYs the truth
2. Is not afraid of speaking up and has no fears
3. Exercises self-control 1;Tl'* *eapons of the satyagraha

are within him"')
4. Seeks solutions that will pleasl all the parties involved
("satyagraha aims to exalt
both sides,")
5. Respects the other party ("The opponent must be
weaned from error by patience and
sympathy' Weaned, not crushed; convefted' not annihilated'")
6. Neither uses violence nor insults
lt.
r.
i!
,r!
i:r
l:,.
nr:
.*"
:el
'{i
"8,:iFl
Iiil
Chapter5.Cross.culturalNegotiationanclDecisionivlaking16l
?. Is ready to change his or her mind and dii'fer
with himself or herself at the risk of being

seen as inconsistent and unpledictable
g. puts things into psl.spectiv; and switches easily from the
small picture to the big one
9. Is humbie and trusts the opponent
10. Is abie to withdraw, use silence, and leant from within
11. Relies on himself or herself, his or her own resources
and strengths
12. Appeals to the other party's spiritual identity
("To communicate, the west moves or talks'
The East sits, contemplates, suffers'")
13. Is tenacious, patient, and persistent
14. Learns from the opponent and avoids the use of secrets
15.Goesbeyondtogicalreasoningandtrustshisorherinstinctaswella
slaith
ARAB NEGOTIATOnS Many Arab negotiators, following
Islamic
tradition' use mediators to
settle disputes. A successful Arab mediator acts in the following
way:
1. Protects all the parties' honor, self-respect' and dignity
2. Avoids direct confrontations between opponents

3. Is respected and trusted by all r ,, --. .-,^^L-aoc nr
4. Does not put tne farties"involved in a situation where
they have to show weakness or
admit defeat
5. Has the necessary prestige to be listened to
6. Is creative enoughio .ot" up with honorable solutions for all
parties
7. Is impartial and can undersrand the positions of the
various parlies without leaning toward
one or the other
S.Isabletoresistanykindofpressurethattheopponentscoulduytoexe
rciseonhim
g.Usesref.erencestopeoplewhoarehighlyrespectedbytheopponent
stopersuadethemto
change their minds on io*" issues (,,Do it for the sake of your
father.")
l0.CankeepSecretsandinsodoinggainstheconfidenceofthenegotiat
ingpar-ties
11. Controls his temper and emotions (or'loses it when and
where necessary)
12. Canuse conferences as rnediating devices
13. Knows that the oppon"nr, will hlave problems in canying
out the decisions made during
the negotiation
14. Is able to cope with the Arab disregard fbr time

15. Understands the impact of Islam on th" opponents who
believe that they possess the truth'
foilow the Right paih, and are going to "win" because their
cause
is just
SWEDISH r$EGCTIAT$RS Sweclish negotiators, according to
Casse' are:
1. Very quiet and thoughtful
2. Punctual (concerned with time)
3. ExtremelY Polite
4, Straightibrward (they get stlaight down to business)
5. Eager to be productive and efficient
6. HeavY going
7. Down to earth and overcautious
8. Ratirer flexible
9. Able to and quite goocl at holding emotions and feelings
10. Slow at reacting to new (unexpected) proposals
11. Informal and familiar
12. Conceited
13. Perfectionist
14. Afraid of confrontations
15. VerY Private
IT/LIAN niE6OTUTtlR5 ltalians, says casse, value a
negotiator
who acts as follows:

1. Has a sense of drama (acting is a main part ol the cuiture)
2. Does not hide his or her emotions (which are paltly sincere
and partly feigned)
162 Part 2 ' The Cultural Context of Global Management
3. Reads facial expressions and
gestures very well
4. Has a l'eeling for history
5. Does not trust anYbodY
6.lsconcernedaLroutthebellctftgur6-the,.goodimpression''-
heorshecancl€ateamong
those who watch his or her behavior
7. Believes in the individual's initiatives' not
so much in teamwork
8. Is good at being obliging and simpatico
at all times
9. Is always onthe quivive-the "lookout"
10. Never embraces definite opinions
11. Is abie to come up with new ways to
immobilize and eventually destroy his or her
opponents

12. Handles confroniations of power with subtlety
and tact
L3. Has a tlair lbr intrigue
14. Knows how to use flatterY
15. Can involve other negotiators in complex
combinations
esMpARlrcrc pRoFrLEs Comparing such profiles
is useful. lndian negotil":::t example'
are humble, patient, respecttbl of thJother iarties'
and very willing to cornpromise' compared
with Arnericans, who are firmer "l""ii"ti"g
stands. An important difference between Arab
negotiators and those iiorn most other countles
is that the negotiators are mediatofs' not the
partiesthemselves]hence,directconfrontationismadeimpossitrle's
uccessfulswedislrnego-
tiators are conservative and careful,
dealing with factual and detailed infotmation'
This profiie
contrasts with Italian negotiators, *fro *" "ipt"'siu"
and exuberant but less straightforward
than
their Swedish counterparts'
i:+

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+
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fi.
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*i
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ri:
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iu
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r$AFidG l ti6 ru gGsTlATlsN
skillful global managers must assess many factors
when managing negotiations' They must
understandthepositiorroftheotherpartiesinregardt:tle"1rc:11]h*h
ernationalorcor-
porate*and whether these goals are representediy

principles or speciflc details' They should
have the ability to recognizeihe relative
i*pono*" utiachei to completing the task versus devel-
opinginterpersonalrelationships.Managersalsomustknowthecomp
ositionoftheteams
involved, the power allotted to the members,
and the extent of the teams' preparation'
in addi-
tion, they must grasp the significanc" of
p".ronJ irurt in the relationship' As stated earlier'
the
culrure of the parties lnvolv'ed affects their neg;aiing
,tyt", and behavior and thus the overall
pfocess of negotiation. However, whatever tt" "ritrrJ,
r**"ur"h by Tse, Francis, and walls has
fbund person-related conflicts to "invite negativ;,
more relation-oriented (versus information-
oriented) responses," ieatling them to
.on.tuO" it1ui "rrt" software of negotiation-that
is' the
nature and tle appearanc" Jr rrr" relationship between
the people pursuing comnlon goals*
needs to be carefully "iit"tt"a
in the negotiaiion protest'3o .. . '

This is particularly true when representatives
of individual-focused cultures (such as
the Americans) and group-fbcused cultures
(such as the chinese) are on opposite sides
of the
table. Many of these culture-uased differences
in negotiations came to light in Husted's
study
onMexicannegotiatofs,pelceptionsofthereasons-
forthefailureoftheirnegotiationswith
u.S. teams.3l The tr,le"icunrnonug"rr' interpretations
were aff'ected by their high-context
culture, with the "i,u*rt"rlrti",
oi un inoireii approach, patience in discussing
ideas' and
maintenance of dignity. Instead, the low-conte*i-Americans
conveyed an impatient' cold'
blunt communicative style. To maintain the.
outward dignity of the.ir Mexican counterparts'
Americans musr approach negotiation,
*iil-tt.*i"un'r with patience and tolerancs and
refrain fiom attacking ideas because these attacks
may be taken personally' The relationships

among the factors ot.rorr-"urturul n"gotiotion
oir"urr"a in trris chapter are illustrated
in
Exhibit 5-5.
The successful management of intercultural
negotiations requil'es that a manager
go
beyond a generalized uno"rriunaing of
the lrru., uno vaiiables involved' she or he
must ( I ) gain
specific knowledge ot: the parties in rhe
upcomllg meeting, (2) prepare accordingly
to adjust to
and control the situation, unO (:) be innovative'3z
Resear'chhasshownthataproblem.solvingapproachisessentialtosu
ccessfulcross-
cultural negotiations, whether abroad or in
the f,ome offlce' although the approach works
Chapter 5 . Cross-cultural Negotiation and Decision
Making 163
LXHltsiT 5-s Cross-cultural NegotiationVariables

Culture
.:.::. .:.
I osK versus
interpersonol
relotionshiPs
..
Negofioting sfles:
obiective/subiective/oxiomotic
Neootioting behovior:
delense/ottqck'/trust
deception/pressu re/concessions
Verbql ond nonverbol behovior
Atiitudes toword time/scheduling
Goolr
Notionol/corporote
Principles versus specific detoils
3-
Composilion o{ teoms
Level oi PrePorolion
6

Trust level
ond durstion
relolions
{
4
Culture
:ift?rently in various countries.33 This
problem-solving apploach^ requires that
a negotiator
:re at everyone with 1.espect, avoid making ""v.""
rJ"l uncomfortable' and not criticize
.,,rblametheotherpartiesinapersonal*ayttratmaymakesom€onefee
lshame-thatis'
''"t
tfrlrr*.h
by the Huthwaits Research Group reveals
how successful negotiators' compared
:i average negodarors, *unug" the planning process antl
their face-to-face behavior' The
group
:,".und rhat during the planning pr.ocess,
,u.r"rrruin"goii*or,

"onsider.a
wider range of options
_urd pay greater attentiol.t to ar.eas ol common
gr"-io. Skillful negotiators also tend to make
;*.ice as many comments regarding long-term
isiues and are more likely to set upper and
lower
rlmits regarding.peclnc fointr. tn'tt"ir.fu""-to-f*'"
b"huuior' skillful negotiators make fewer
:iritating comments--*.,"h u,
..We,re nraking v.' u *"'*ous offer,'' make counterproposals
less
::equently, and use f'ewer reasons to back
up u.gur.,]"*n"' In addition' skilled negotiators
pfactlce
:;tive lisrening-"rki";;;;;ions, clarlying th*eir
understanding of the issues, and summa.tztng
le issues.-'
Using the lntep"n*t to Suppcnt Negctiaticns
{o.erntechnologycanprovidesuppol'tforthenegotiatingprocess,th
ougtritcan::-1!e.::e
place of the essential iui.-ro-ru." ing.eclient
in m-any insianoes' A growing component

lor
eiectronic cornmerce t, it. A"u"fopment of applications
to- support the negotiation of contracts
and resolution of oisputes. a, w.u appiications
develop, they may provide support
for various
phases and dimensio;:; as
*Muiriple- t;;; *"iiipr.- pariy-business transactions of a
buy-sell nature; int".nutionut dispute
r"rolu,ion fiu'in"" Oi'po"t' political disputes);
and inter-
nal company negotiations antt "t'mmunitations'
atnong others.''r)
ri:
164Part2,TheCulturalContextofG]oballvlanagement
NegotiafionsLlpportsystelns(NSS)canprovideSuppoilfbrthenegot
iationprocessinthe
following waYs:
.lncreasingthelikelihoodthatanagreementisreachedwhenazoneofa
greementexists
. S:*::*fil:XT:"1':::T""Jl,*'""JJl or negotiarions,
such as costs caused bv tirne

O"r"v- itoit"t' "i"i*"t"1'
*d afi orneys' fees'among others
' Maximizing the chances for
optimat outcolnes
oneWeb-
basedsupportSystem,deveiopedatCarletonUniversityinottawa,Ca
nada-
cailect lNSplRE-provide' uppti.ationslo,
prrpting an<l conducting negotiations
and for rene-
gotiatins opdons afler a sertlemtl'i:t:t^:*::tt{rt n;;t";n'"'
unl asiess offers; the site also
[as graphiial displays ofthe negottatlon
process'
E-
NEG0TlATloNsTheadvantagesofelectroniccommunicationsarew
ellknown:speed,less
rravel, rhe abilty to lay out *r"h;;j;n"
into'*utlon to be considered by
the other party
over rime. The disadvanrog"r,
t',o*JJi;, ;;il; kill a. deal before it gets off
the ground by not
being able to build trust and int".prrronut
rJlationships ou"t tit" bJfore getting down

to busi-
ness. In addition, non-verbal ""J;;;';;;
ior,, ut,t'ough videocont'erencing
is a compt'omise
t'or that PurPose'
Rosetteetal.notedthat'.openingoffersmaybeesPeciatlYaggressivei
ne.mailaScom.
pared to tace-to-face negotiations.i""^i,--."*puter-medlateo
"orniitnic*tions'
such as e-mail'
loosen inhibitions and cause negotiators
to become *o'" "o*f"titive
and more risk seeking' The
increase in competitive and risky
behavior occufs because e-mail
do"ls- not communicate sociai
conrexr cues in ih" ,urn" way as d;;;;;e
of another person."38
Managing eonflict Resolutian
Muchofthenegotiationprocessisfraughtrruithconflict-
explicitorimplicit-andsuchcon-
lict can often lead ro u'ri*Ooff, or a lose*1o'"-'ituutlon'
1.nis is regrettable' not only because

of the situation at hano, b|t';1r";;.;"r" lt
p*U"OfV *itt 't'u'
off fuiure opportunities for deals
;; ;; ;" the parti e s M *1' ;r t" ::T : :i',T *ffi[il,| :::';1,fft:"T'ii
ii"fi1T:
between the parties-in their expectatlons'
ln
fo""r, Negotiating with
munication styles-as iilustrated
in the Comparative Management
in
the Chinese.
COMPARATIVE MANAGEMENT
IN FOCUS
Negotiating with the Chinese
TheChinesewayoJ.makiltgdecisionsbegins'lvitltsocializationandi
nitiatiotlofpersonal
guanxi rather ,,*r'iii*rzr" tlisc,ssioi. The focus
is ttot nnrket r.eseatch' statistical
atnlysis, facts, Pow;;Point
presetttatiou'' o' *-'i"-point business discussiott'
My focus

must be onfosteing gttanxi' SuxNv Zgou'
GenetwtMarwg-::f;'#;:1t;::ry::i
WhenWesternersinitiatebusinessnegotiationswithrepresentatives'
:"i:1"'-T'e,sRepublicofChina.
cuttural barrier, .onr.ont nJ*, ,j0"..
H"**"r, *" .t o,iro r"cognize ttrat tt'ere are
regional cuitural differ-
ences which may aft-ecr ""r"ri-ir*r, "s
detailed t" i;;;'; well as regional economic
differences'
In addition, as concluded ;i #ffi;; ir"e ", "1.,
di" are considerable generational diiferences'
tn
panicular wirh rhose ,"""** O".Oi" *r,o. t iu",U"J;;'.;i;ii"
the west and ure more familiar
with
westcrn ways and lan-guales.
whereas the older generation holds
to more traditional culture and
negotiafi on strategies'ru

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