Although most Americans treat those they know differently than they treat strangers, Chinese relationship building towards insiders and outsiders tends to be more extreme than in the United States – and therefore more important in negotiations in China than many Americans understand. … Read More
International negotiation requires the ability to meet special challenges and deal with the unknown. Even those experienced in cross-cultural communication can sometimes work against their own best interests during international negotiations. Skilled business negotiators know how to analyze each situation, set up negotiations in ways that are advantageous for their side, cope with cultural differences, deal with foreign bureaucracies, and manage the international negotiation process to reach a deal.
The Program on Negotiation notes that in any international negotiation, several critical tactics should be considered:
- Research your counterpart’s background and experience.
- Enlist an adviser from your counterpart’s culture.
- Pay close attention to unfolding negotiation dynamics.
Researchers have confirmed a relationship between national culture and negotiation style and success. An ongoing project sponsored by Northwestern University’s Dispute Resolution Research Center is exploring the link between process and outcomes—specifically, how cultural tendencies lead to certain process choices, which, in turn, can lead to better or worse negotiation results.
For example, while conventional wisdom tends to hold that there’s strength in numbers, some cultures may dislike being faced with a sizeable negotiating team, poisoning the negotiations right from the start.
At the same time, diplomatic negotiations, such as those between the U.S. and Iran over nuclear capabilities, can be quite different from business negotiations. For example, it’s critical to maintain a reputation for impartiality, and to be aware how your international goals potentially interact and contradict, so you can establish a consistent stance in your relations with groups you are trying to woo.
Finally, due to the enormous influence of China in today’s world markets, PON offers numerous insights into Chinese negotiation styles, which include a strong emphasis on relationships, a lack of interest in ironclad contracts, a slow dealmaking process and widespread opportunism.