Published in 1982, Howard Raiffa’s book "The Art and Science of Negotiation" constitutes the dawn of a new era with its asymmetrically prescriptive/descriptive orientation. It consolidated distinctive approaches, boosted research and overcame thinking barriers. In times of a globalized, highly interdependent world with multibillion dollar cross border M&A transactions, international business negotiations are an essential part of the global economy and shape a company’s success. This thesis describes the cultural dimensions of Hofstede and Hall and additionally Raiffa’s negotiation analysis from the perspective of distributive negotiations. A new approach for international business negotiations is introduced which should enable negotiators to deal with differences at an international stage. In order to understand if and how culture affects negotiation hypotheses are derived from theoretical grounded work. By conducting several interviews with negotiators from different cultural backgrounds, tendencies are illustrated and the question whether further empirical research is needed is answered. The interviews show that negotiations between individuals from countries with different power distance indexes often lead to non-agreements. Moreover, the interviewees think that negotiators with an individualist mindset are more likely to reach an agreement in distributive negotiations. Lastly, the interview reveals that negotiators from a country scoring high in masculinity tend to apply rather distributive than integrative negotiation styles. Further validation of the hypotheses with case stud-ies and experiments have yet to be conducted.
Table of Contents
- Introduction
- Preliminary Note
- Aims and Objectives of the Thesis
- Structure of the Thesis
- Definition of Terms
- Negotiation
- Culture
- Cultural Dimensions
- Hofstede's Cultural Dimensions
- Power Distance Index (PDI)
- Individualism vs. Collectivism (IDV)
- Masculinity vs. Femininity (MAS)
- Uncertainty Avoidance Index (UAI)
- Long-term vs. Short-term Orientation (LTO)
- Hall's Cultural Dimensions
- High- vs. Low-Context
- Time
- Negotiation Analysis
- Preliminary Note on Negotiation Analysis
- Development of Negotiation Theory
- Decision Analysis
- Behavioral Decision Analysis
- Decision Traps
- Uncertainty Anomalies
- Choice under Uncertainty
- Game Theory
- Characterization of Negotiation Analysis
- Taxonomy of Negotiations
- Two-Party Distributive (Win-Lose) Negotiations
- Interests
- Best Alternative to Negotiated Agreement (BATNA)
- Reservation Price
- Buyer's and Seller's Surpluses
- Zone of Possible Agreement (ZOPA)
- The Dance of Concession
- Buyer's and Seller's Exaggeration
- Raiffa's Findings concerning Distributive Negotiations
- Both Parties know the Other's Reservation Price
- Culture and Negotiation
- Preliminary Note concerning Culture and Negotiation
- Prevailing Concepts
- New Approach to Intercultural Negotiation
- Pre-negotiation
- Negotiation Process
- Post-Negotiation
- Hypotheses
- Deriving of Hypotheses
- Hypotheses
- Interpretation of the Interviews
- Discussion and Conclusion
Objectives and Key Themes
This thesis aims to analyze the impact of cultural dimensions on distributive negotiations in international business. It explores how cultural factors, as described by Hofstede and Hall, influence negotiation strategies and outcomes. A new approach for international business negotiations is introduced. The research uses interviews to investigate the relationship between culture and negotiation success.
- The influence of cultural dimensions on negotiation styles
- The impact of Hofstede's and Hall's cultural frameworks on distributive negotiations
- Development and application of a new approach to intercultural negotiations
- Analysis of interview data to illustrate cultural tendencies in negotiations
- Assessment of the need for further empirical research on culture and negotiation
Chapter Summaries
Introduction: This chapter sets the stage for the thesis by providing a preliminary note, outlining the aims and objectives, and detailing the structure of the work. It establishes the context of international business negotiations within a globalized world and highlights the importance of understanding cultural nuances in achieving successful outcomes. The chapter emphasizes the need to move beyond simplistic models of negotiation and to incorporate a nuanced understanding of cultural dynamics.
Definition of Terms: This chapter provides clear and concise definitions of key terms – "negotiation" and "culture" – that are central to the thesis. The definitions are grounded in existing literature and serve as a foundation for the subsequent analysis of cultural influences on negotiation processes. The chapter clarifies any ambiguities and lays the groundwork for consistent terminology throughout the thesis, ensuring clear understanding and avoiding misinterpretations.
Cultural Dimensions: This chapter delves into the theoretical framework underpinning the thesis, exploring the cultural dimensions proposed by Hofstede and Hall. It provides a detailed explanation of each dimension – Power Distance Index (PDI), Individualism vs. Collectivism (IDV), Masculinity vs. Femininity (MAS), Uncertainty Avoidance Index (UAI), Long-term vs. Short-term Orientation (LTO), high-context vs. low-context communication, and the perception of time – and examines their potential relevance to negotiation dynamics. The detailed explanation of each dimension provides a robust foundation for the later analysis of how these factors influence negotiation behaviors and outcomes.
Negotiation Analysis: This chapter reviews existing negotiation theories, tracing their development from early prescriptive approaches to more sophisticated behavioral and game-theoretic models. It delves into decision analysis, behavioral decision analysis (including decision traps and anomalies), and game theory to provide a comprehensive understanding of the cognitive and strategic aspects of negotiation. This chapter provides a robust theoretical basis for understanding the complexities involved in negotiation, equipping the reader to analyze the cultural factors affecting negotiation behaviors.
Taxonomy of Negotiations: This chapter likely provides a framework for classifying different types of negotiations, setting the stage for the detailed exploration of distributive negotiations in subsequent chapters. It could present various negotiation styles or approaches, creating a typology to which specific examples can be compared and contrasted.
Two-Party Distributive (Win-Lose) Negotiations: This chapter focuses on the core concepts of distributive negotiations, analyzing the interests of involved parties, BATNA (Best Alternative to a Negotiated Agreement), reservation prices, the zone of possible agreement (ZOPA), and the dynamics of concession-making. It examines how buyer and seller surpluses interact and explores Raiffa's contributions to the understanding of distributive negotiations. A comprehensive examination of this negotiation style provides a solid foundation for understanding how culture influences its processes.
Culture and Negotiation: This chapter directly addresses the central theme of the thesis, exploring how culture influences negotiation processes and outcomes. It examines existing literature on the interaction of culture and negotiation and then introduces a new approach for managing intercultural negotiation, which is likely broken down into the pre-negotiation, negotiation process, and post-negotiation stages. This innovative approach offers a practical framework for applying the theoretical concepts discussed earlier in the thesis.
Hypotheses: This chapter outlines the hypotheses derived from the theoretical framework established in previous chapters. These hypotheses will guide the analysis of interview data in the subsequent chapter. They provide specific, testable predictions about the relationship between cultural dimensions and negotiation behaviors.
Keywords
International Business Negotiations, Cultural Dimensions, Hofstede, Hall, Distributive Negotiation, Intercultural Communication, Power Distance, Individualism/Collectivism, Masculinity/Femininity, Uncertainty Avoidance, High/Low-Context, Negotiation Analysis, Empirical Research.
Frequently Asked Questions: A Comprehensive Language Preview
What is the main topic of this thesis?
This thesis analyzes the impact of cultural dimensions on distributive negotiations in international business. It focuses on how cultural factors, as defined by Hofstede and Hall, influence negotiation strategies and outcomes, introducing a new approach to intercultural business negotiations and using interview data to support its findings.
What are the key cultural dimensions explored in the thesis?
The thesis explores Hofstede's cultural dimensions (Power Distance Index (PDI), Individualism vs. Collectivism (IDV), Masculinity vs. Femininity (MAS), Uncertainty Avoidance Index (UAI), Long-term vs. Short-term Orientation (LTO)) and Hall's cultural dimensions (high-context vs. low-context communication, and the perception of time). These are used to analyze their influence on negotiation styles and outcomes.
What theoretical frameworks are used to analyze negotiations?
The thesis draws on various negotiation theories, including decision analysis, behavioral decision analysis (with a focus on decision traps and uncertainty anomalies), and game theory. This provides a comprehensive understanding of the cognitive and strategic aspects of negotiation, providing context for the cultural analysis.
What type of negotiation is the primary focus?
The thesis primarily focuses on two-party distributive (win-lose) negotiations. Key concepts explored include interests, BATNA (Best Alternative to a Negotiated Agreement), reservation prices, the Zone of Possible Agreement (ZOPA), and the dynamics of concession-making.
What is the methodology used in this research?
The research utilizes interviews to investigate the relationship between culture and negotiation success. The analysis of interview data is used to illustrate cultural tendencies in negotiations and to test the hypotheses developed in the thesis.
What is the proposed new approach to intercultural negotiation?
The thesis introduces a new approach to managing intercultural negotiations, structured into pre-negotiation, negotiation process, and post-negotiation stages. This offers a practical framework for applying the theoretical concepts discussed.
What are the key hypotheses of the thesis?
The thesis presents hypotheses derived from the theoretical framework, predicting the relationship between specific cultural dimensions and negotiation behaviors. These are tested using the interview data.
What is the overall structure of the thesis?
The thesis is structured into chapters covering an introduction, definition of terms, cultural dimensions, negotiation analysis, a taxonomy of negotiations, two-party distributive negotiations, culture and negotiation, hypotheses, interpretation of interviews, and a discussion and conclusion. A table of contents is included in the preview.
What are the key takeaways or conclusions of the research (as presented in the preview)?
The preview indicates the research aims to demonstrate the significant impact of cultural dimensions on distributive negotiations, providing a new approach to intercultural negotiation, and highlighting the need for further empirical research in this area. Specific conclusions based on data analysis are not presented in the preview.
What are the keywords associated with this thesis?
Keywords include: International Business Negotiations, Cultural Dimensions, Hofstede, Hall, Distributive Negotiation, Intercultural Communication, Power Distance, Individualism/Collectivism, Masculinity/Femininity, Uncertainty Avoidance, High/Low-Context, Negotiation Analysis, Empirical Research.
- Quote paper
- Niklas Dahlen (Author), 2014, Cultural Impact on Models of Negotiation using the Example of Distributive Negotiations, Munich, GRIN Verlag, https://www.grin.com/document/280270
