Impact of Culture on Negotiating Styles in Relation

Impact of Culture on Negotiating Styles: in Relation to Hofstede’s Dimensions of National Culture Abstract An effective business negotiation is very significant in achieving a successful business relationship. As the businesses expand globally, so do the conflicts between the interacting parties. These conflicts only get amplified if the interacting parties are from different cultural background. An individual s cultural background plays a big role in his perception, which affects his judgment, motivation and behavior at the bargaining table. The perception of an individual is the manifestation of the deeper held values and beliefs he has grown up with. In short, culture affects the whole negotiating process. A better†¦show more content†¦Hofstede’s website provides an overview of his research on dimensions of national cultures. Negotiating Tendencies Based on Cultural Background It is inferred from Hofstede’s research data for a few selected countries derived from his website (http://www.geerthofstede.nl/) and presented in Appendix B, that Mexico has a high power distance, uncertainty avoidance, and masculinity indices but low individualism index. Cultures with strong uncertainty avoidance have low risk taking capabilities. A comparative analysis of negotiating tendencies by Metcalf et al. (2006) concludes that Mexican respondents are least likely to favor a high-risk approach to negotiating. This is consistent with the high uncertainty avoidance (UAI) scores assigned to Mexico in Hofstede’s research. Heydenfeldt (2000) studied the Mexican behavior based on the individualistic/collectivistic model of cultural variation and concluded that Mexicans exhibited collectivism by engaging in behaviors that suggested relational concern. According to Metcalf et al. (2006), small power distance is characteristic of Finnish culture. The small power distance was evident from the Finnish team organization skills where individuals were responsible for decisions, but large power distance was evident for both Indians and Mexicans as the authority to make decisions was vested in a few at the top. According to Hofstede (1980), countries such as Austria, Denmark, Israel, New Zealand, Ireland, Sweden, Norway,Show MoreRelatedThe International Business Negotiations Influenced By Chinese And American Cultures And Differences743 Words   |  3 Pagesinfluenced by Chinese and American cultures and differences Jialin Zhao CMN6060 Professor Stephen Novick October 26, 2016 Abstract Cultural negotiations are business negotiations with different cultural conditions. Under the background of economic globalization and international economic integration, the business ties between countries are becoming more and more closely. 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