A set-theoretic analysis of negotiations in Japanese MNEs: opening up the black box

This article deals with international negotiations in multinational enterprises (MNEs), in particular the HQ-subsidiary negotiations. The theoretical part of the intercultural negotiation framework (Ott, 2011) highlights the potential for MNE negotiation analysis. An empirical investigation into Japanese MNE negotiations strengthens the theory. Different time perceptions and strategies influence HQ-subsidiary negotiations. The outcome of the fuzzy set Qualitative Comparative Analysis (fsQCA) shows that an integrative approach needs a higher offer with a margin of at least 20% to cover for relationship building, patience and trust

A configurational and experimental approach to compare British and Chinese cultural profiles of generation Y

This paper provides new activity-based classifications for cultural differences and similarities, in contrast to the cultural dimensions of hierarchy, group behavior, uncertainty avoidance and time-orientation. Cultural activity types have been classified by Lewis (1999) into linear-active, multi-active and reactive cultures. Moving away from a country perspective based on political boundaries to a cultural community approach, it is not only task-orientation, but also the way cultures communicate, negotiate, and contract that is dominated by activity types. This article conceptualize, hypothesize and test observations with a set-theoretic tool (fsQCA). Our analysis focuses primarily on British and Chinese cultural profiles to start with. This should give us an initial approach towards understanding the similarities, differences and overlaps of cultural behavior. The outcome shows that future managers from Britain and China have more similarities than so far portrayed. Cultural dynamics are at the centre of a cooperative outlook towards managing across cultures

Repeated moral hazard in international joint ventures: inter-temporal culturally sensitive incentive schemes for hidden action

This paper studies a repeated game of contracting in International Joint Ventures (IJVs) on the basis of information asymmetries due to different cultural backgrounds. Reputational effects, renegotiation and cooperation between the players are analyzed by using formal models. The organization, success and failure of an IJV are determined by the effort levels induced in each stage of the life-cycle. Besides managerial efforts, the cultural distance and convergence influence the design of long-term contracts in form of incentives for efforts of cultural cooperation. This leads to a dynamic contracting over the life-cycle of an IJV, in order to avoid cheating and to enhance co-operation on a cultural and managerial level. The outcome is the design of inter-temporal, culturally-sensitive incentive schemes as a new approach to contracting in IJVs

Brexit negotiations: from negotiation space to agreement zones

Brexit is decidedly a “big question”. We agree with International Business scholars who say that such questions need to be addressed using an inter-disciplinary approach. We use bargaining theory models of rational behavior and the negotiation literature to explain various Brexit options and predict their consequences. Considering the lack of relevant experiential knowledge, and the multidimensional high-stakes negotiations underway, it is little wonder that anxiety is growing across all 28 European Union member states. Our analysis supports a coherent approach from rational bargaining model to real-life international negotiation. We position outcome scenarios in different agreement zones and explore their ramifications

Defining Chlorophyll-a Reference Conditions in European Lakes

The concept of “reference conditions” describes the benchmark against which current conditions are compared when assessing the status of water bodies. In this paper we focus on the establishment of reference conditions for European lakes according to a phytoplankton biomass indicator—the concentration of chlorophyll-a. A mostly spatial approach (selection of existing lakes with no or minor human impact) was used to set the reference conditions for chlorophyll-a values, supplemented by historical data, paleolimnological investigations and modelling. The work resulted in definition of reference conditions and the boundary between “high” and “good” status for 15 main lake types and five ecoregions of Europe: Alpine, Atlantic, Central/Baltic, Mediterranean, and Northern. Additionally, empirical models were developed for estimating site-specific reference chlorophyll-a concentrations from a set of potential predictor variables. The results were recently formulated into the EU legislation, marking the first attempt in international water policy to move from chemical quality standards to ecological quality targets

The DNA of negotiations as a set theoretic concept: a theoretical and empirical analysis

This study examines the factors and the processes that contribute to a satisfying outcome for negotiations. Based on a set-theoretic framework, the authors investigated managers from various countries in terms of their approach to negotiation. The fuzzy set Qualitative Comparative Analysis (fsQCA) uses detailed data on preparation, information exchange, persuasion, creativity in problem solving and overcoming deadlocks, break-up behavior, as well as how to achieve a satisfying outcome, to test the joint sets of successful outcomes. The implications of these results are relevant for practitioners and future research and highlight necessary and sufficient conditions for a successful negotiation outcome