Do you think Gender difference will influence outcome of negotiation? How did the Culture difference affect the outcome of the negotiation? How important was it for your counterpart to reach a deal? What was his/ her BATNA?

1. NEGOTIATING IN SAUDI ARABIA &
THE IMPACT OF GENDER DIFFERENCES
ON NEGOTIATIONS
MGBL 885 ⎜ INTERNATIONAL NEGOTIATION ⎜ PROFESSOR SUSAN BRODT
Anna Allinger ⎜ Wenting Gao ⎜ Renjie Hu ⎜ Nargiz Mammadova ⎜ Michelangelo Matteoda ⎜Omar Simsek
April 2, 2015, Kingston, Canada

2. AGENDA
v Introduction
v Cultural differences & Negotiation Styles
v Impact of Gender Differences on Negotiation
v Exercise Section
v Conclusion

3. INTRODUCTION
Our Goal
§ Improve cultural awareness in negotiation
§ How gender difference impact negotiation
§ How to adapt negotiation styles in cross-cultural negotiation
§ Show how women can cope with stereotype threat
Research topics
covered
Cross-culture in negotiation
§ Negotiation style of Saudi Arabia
§ Arabian culture and impact
Gender in negotiation
§ Stereotype threat theory
§ One-down phenomenon
Context:
§ Saudi Arabia
§ Prestige and status
Link to research
§ Upfront information
§ Gender and cultural
differences
Roles and
Instructions
(integrative)
Roles:
§ Buyer: Rabad
Construction
§ Seller: GlassStone INC
1 2 3

4. CULTURAL DIFFERENCES
0
20
40
60
80
100
Saudi Arabia United States
Individualism
Uncertainty Avoidance
Long Term
Orientation
Indulgence
Masculinity
Power Distance Hierarchy VS Equality
Superiors inaccessible VS Superiors Accessible
“We” consciousness VS “I” consciousness
Relationships VS Tasks
Family and group VS Self
Loss of face VS Loss of self respect
Anxiety VS Relax
Laws and rules VS Flexibility
Avoid conflict VS Encourage competition

5. IMPACT OF GENDER DIFFERENCES ON NEGOTIATION
STEREOTYPE
THREAT:
negative stereotype
influences judgements
and behaviors
1. Implicit: negative effect
on performance
2. Explicit: better performance
counter sterotypic behaviour
(Gorilla effect)
1. Implicit: positive effect on
performance (confirmation)
2. Negative Performance:
Masculine traits associated
with negotiation failure
Women
§ Ineffective negotiator traits:
weak, emotional and too
conciliatory
§ Better in building a relationship
§ Set less aggressive goals (value
claiming)
Men
§ Effective negotiator traits:
assertive, rational, decisive,
constructive and intelligent
§ More competitive
§ Achieve better outcomes

6. IMPACT OF GENDER DIFFERENCES ON NEGOTIATION
Think of negotiation as a female
skill
Be cooperative and claim value
§ Fewer options compared to opponent
§ Aggressive strategies
§ Seeking change in the relative control
§ Attacks other party to defend personal position
One-down phenomenon
How women can overcome the mental models of stereotypes and one-down phenomenon:
Set challenging goals
1 2 3

7. EXERCISE: GENERAL INFORMATION
¡ GlasStone Inc. (United States)¡ Rabad Construction (Saudi Arabia)
§ Located in Texas, United States, is
market leader in producing jewelry,
high quality crystals and glass since
1897.
§ Chosen for reputation on delicate
design and high quality production.
§ Gulf region is important for future
projects and contracts
§ Female Project Manager will represent
company
§ Prominent construction company
§ Build a new grand business tower, both
to increase their profits and to highlight
and showcase their capability as leading
construction firm.
§ Motivation: Improve social standing
with the Sultan
§ Original contractor is no longer
available due to bankruptcy

8. EXERCISE: CONFIDENTIAL INFORMATION
¡ GlasStone LTD (United States):
Samantha Watson, Project Manager
§ Never negotiated in this region before, but
knows women are less encouraged in
business
§ Does not know much about the client
§ Opportunity to prove yourself
§ Making deal is crucial, especially for her
personal career status
§ Time pressure: needs to make quick deal
§ There are existing financial constraints that
require negotiating
¡ Rabad Construction (Saudi Arabia):
Mohammad Al-Yussouf, owner of Rabad Ltd
§ Status important
§ Opening ceremony of building will be
dedicated to Sultan`s 70 birthday
§ $10 mil. budget and $6 mil. personal Fund.
§ Failure is unacceptable
§ 1st time to negotiation with foreign woman
§ Timely delivery is critical
§ Arranging a management position for your
cousin

9. EXERCISE: KEY TAKEAWAYS
Know and use the
power of relationships
Awareness of Gender
Roles
Woman can make it
work

10. FIT IN COURSE STRUCTURE
• Covering a wide variety of topics (e.g. women in negotiation, culture’s
impact on negotiation, values, ethics and etc.)
• Topic related to:“How culture affects negotiation” reading
• Basic Knowledge of negotiation necessary (BATNA, ZOPA, etc.)
• Roleplaying aspect: for learning and applying at the same time

11. CONCLUSIONS AND SUGGESTIONS
Be prepared!
• Know the deal’s
objectives
• Know the
culture
difference
• Know the
different gender
conception
• Get to know the
other part’s
interests
Win-win Negotiation

12. THANKYOU!
WE ARE MORE THAN HAPPY TO ANSWER
YOUR QUESTIONS!

13. NEGOTIATION STYLES

14. § Do you think Gender difference will influence outcome of negotiation?
§ How did the Culture difference affect the outcome of the negotiation?
§ How important was it for your counterpart to reach a deal? What was his/
her BATNA?