Trust and ethics in international business negotiations: A cross-cultural analysis

The growing interdependence in the global economic and political arena is resulting in accelerated growth in cross-national commercial relationships. Since some form of negotiation precedes most commercial activities and relationships, the topic of cross-cultural negotiation is of crucial importance to academicians, practitioners, and policy formulators. Despite its importance, research on cross-cultural business negotiation has not been very systematic and most of the empirical studies lack the explanatory power that is necessary for theory building. This study attempts to overcome this shortcoming by systematically linking different dimensions of national culture with different types of negotiation behavior. This dissertation studies the relationship between different dimensions of national cultures identified by Triandis (1972), Hall (1960, 1973, 1976), and Hofstede (1980, 1981) and the level of trust that negotiators repose on their opponents during negotiations. In this study, trust is deemed to be a mediating variable through which different dimensions of culture influence ethical negotiation behavior in international negotiations. The cultural dimensions being investigated include the collectivism-individualism, the low-context-high-context, the small-versus large-power distance, and the strong-versus weak-uncertainty avoidance dimensions. The study draws from the literature of anthropology, management, psychology, sociology, ethics, cross-cultural management, conflict resolution, relationship marketing, and international business. The intent of this dissertation is to investigate and provide explanations as to how negotiators perceive and conduct their ethical behavior in cross-cultural negotiations and how trust (or the lack thereof) affects a negotiator\u27s bargaining tactics with a foreigner as opposed to a negotiator from his/her home country. To empirically investigate the relationships among culture, trust, and negotiation behavior, the study examines the attitude of subjects from Canada, Mexico, and the USA—the member countries of the NAFTA. Based on a comprehensive literature review, this study proposes a model showing the relationship among culture, trust, and ethical negotiation behavior. Based on this model, labeled as the CTB model, the study proposes seven hypotheses which are subsequently tested. Prior to the main study, two pre-tests were conducted to validate the instrument. Statistical analyses of 225 responses received from business people from Canada, Mexico, and the USA, who have experience in international business and negotiations, suggest that the national culture plays an important role in determining the level of trust that a negotiator is likely to place in a foreign negotiator relative to a home-country negotiator. The findings also suggest a negative relation between the level of trust and various questionable negotiation tactics. To gain further insight into the intricacies of negotiation behavior, quantitative analyses of data were supplemented by a series of interviews with cross-cultural negotiation experts. The overall findings suggest that the negotiation behavior of Canadian and US business people are not likely to vary significantly between their intra-cultural and cross-cultural negotiations. However, the negotiation behavior of Mexican business people is likely to vary significantly across their intra-cultural and cross-cultural negotiations. The study also indicates that prior relationships play a far more important role in Mexico than in Canada and in the USA. Finally, the study discusses managerial and research implications of the findings and provides directions for future research

Models for supply chain negotiation in collaborative relationships

Nowadays, firms are increasingly building collaborative relationships with their partners in order to improve the global performance of the supply chain in which they are involved. Such collaborative relationships require information exchange or share and negotiation. In this paper, we first formalize some practices of collaboration from case studies of the aeronautical area then suggest some models for negotiation, allowing a supply chain member to publish hidden constraints and share risks/costs in order to achieve a win-win situation

Project alliancing at National Museum of Australia: Collaborative process

Project alliancing is a new alternative to traditional project delivery systems, especially in the commercial building sector. The Collaborative Process is a theoretical model of people and systems characteristics that are required to reduce the adversarial nature of most construction projects. Although developed separately, both are responses to the same pressures. Project alliancing was just used successfully to complete the National Museum of Australia. This project was analyzed as a case study to determine the extent to which it could be classified as a “collaborative project”. Five key elements of The Collaborative Process were reviewed and numerous examples from the management of this project were cited that support the theoretical recommendations of this model. In the case of this project, significant added value was delivered to the client and many innovations resulted from the collective work of the parties to the contract. It was concluded that project alliances for commercial buildings offer many advantages over traditional project delivery systems, which are related to increasing the levels of collaboration among a project management team

Success Factors of Small and Medium-Sized International Enterprises in the Chinese Market from the Perspective of Polish Direct Investment (Cultural Approach)

Globalization has resulted in increasing transfer of firms operations, regardless of their size, to other countries. The recent dynamic emergence of China in the global economy, connecting with the vast inflows of foreign direct investment in their territory and common adjustments problems of many Western companies, has resulted in growing interest for best suitable business practices to this culturally and socially different environment. In this article, the key factors critical to the success of international companies in this region are introduced, with particular consideration to indigenous cultural elements and specific operation requirements of small and medium-sized enterprises in Business-to-Business sectors. The presented information are based on the broad literature review, five years of direct observation and thirty eight interviews conducted with Polish managers directly residing in China. In addition, some practical recommendations for managers and further research are given.Globalizacja wymusza na firmach, niezależnie od ich wielkości, coraz częstsze przenoszenie operacji do innych krajów. Dynamiczne pojawienie się Chin w światowej gospodarce i szeroki napł;yw zagranicznych inwestycji bezpośrednich na ich teren oraz problemy adaptacyjne wielu zachodnich przedsiębiorstw, spowodował;y zainteresowanie najlepszymi praktykami biznesowymi dostosowanymi do tego odmiennego kulturowo i społ;ecznie otocznia. W artykule zaprezentowane został;y najważniejsze czynnik mające wpł;yw na osiągnięcie sukcesu przez firmy międzynarodowe na tym obszarze, ze szczególnym uwzględnieniem aspektów kulturowych i specyfiki dział;ania mał;ych i średnich podmiotów na rynkach B2B. Prezentowane informacje są oparte na przeglądzie literatury, pięcioletnich obserwacjach bezpośrednich oraz trzydziestu ośmiu wywiadach przeprowadzonych z menadżerami polskich przedsiębiorstw odpowiedzialnymi za operacje w Chinach. Dodatkowo wskazano kilka praktycznych rekomendacji menadżerskich oraz możliwości dalszych badań

Japanese negotiation styles in business

Culture has a significant role in communication styles. In recent years, more and more Japanese companies are expanding into the international market. When negotiating with other parties from different perspectives, values, and beliefs, the knowledge of the other parties would determine the outcome of the negotiation. This article introduces the fundamental elements of cultural behaviors or attitudes observed in business negotiations, especially by the Japanese

Employer Involvement in Office of Disability Employment (ODEP) Demonstration Programs

[Excerpt] As part of the independent evaluation of ODEP’s demonstration program being conducted by Westat, the Office of Disability Employment Policy (ODEP) asked Westat to provide in-depth analysis of three issues that were identified at site visits and in Quarterly Reports during Phase II of the evaluation. This report provides in-depth analysis on the first issue—employer involvement in adult demonstration programs

Correspondences and Contradictions in International and Domestic Conflict Resolution: Lessons From General Theory and Varied Contexts

Does the field of conflict resolution have any broadly applicable theories that work across the different domains of international and domestic conflict? Or, are contexts, participants, and resources so domain specific and variable that only thick descriptions of particular contexts will do? These are important questions which have been plaguing me in this depressing time for conflict resolution professionals, from September 11,2001 (9/11), to the war against Iraq. Have we learned anything about conflict resolution that really does improve our ability to describe, predict, and act to reduce unnecessary and harmful conflict? These are the questions I want to explore in this essay, all the while knowing that I will ask more questions than I have answers to. My hope is to spark more rigorous attention to the possibility of comparative dispute resolution study and practice, using key concepts, theories, empirical studies, practical wisdom, and experiential insights to spark and encourage more multi-level and multi-unit analysis of some of our shared propositions

Risk assessment and relationship management: practical approach to supply chain risk management

The literature suggests the need for incorporating the risk construct into the measurement of organisational performance, although few examples are available as to how this might be undertaken in relation to supply chains. A conceptual framework for the development of performance and risk management within the supply chain is evolved from the literature and empirical evidence. The twin levels of dyadic performance/risk management and the management of a portfolio of performance/risks is addressed, employing Agency Theory to guide the analysis. The empirical evidence relates to the downstream management of dealerships by a large multinational organisation. Propositions are derived from the analysis relating to the issues and mechanisms that may be employed to effectively manage a portfolio of supply chain performance and risks