Abstract
This study explores the linkages between culture, emotions and behavioural tendencies in unsuccessful intercultural business negotiations. A set of novel research hypotheses are developed. They are tested using a negotiation scenario analysis involving 106 Finnish and 114 Indian study participants. Three key findings emerge from the statistical tests conducted. First, new empirical evidence suggesting that qualitatively different emotions (dejection vs. agitation) are experienced after a failed intercultural business negotiation by individualists and collectivists is provided. Second, the existence of the relationship between perspective-taking ability and emotional volatility in the context of failed intercultural business negotiation involving individualists and collectivists is revealed. Third, partial support is found for the idea that different types of negative emotions can lead to the same behavioural tendency (approach) among individualists and collectivists when intercultural business negotiation fails. The paper concludes by outlining a set of theoretical and managerial implications and suggestions for further research.
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Appendices
Key features of American culture as communicated by the vignette
Individualistic aspects of American culture | Illustrative excerpts from the vignette |
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Low context communication | (1) Dave: Well, what more do you want, folks? |
(2) Dave: We would like to thank you for your generous hospitality. | |
Kline: (adding): That Geisha place was great! | |
Task orientation | (1) On the second evening out on the town, the Americans tried to bring the business issue to their hosts’ attention but were only met by smiling Japanese faces who concomitantly placed an order for more drinks. |
(2) Kline I can’t see what those contracts have to do with this? And besides, strictly speaking we have no legal obligation to discuss the nature of those contracts with you. | |
Time sensitivity | (1) Wright: We would like to point out that we cannot wait indefinitely. As a matter of fact, we have recently been approached by a Japanese firm which is interested in the possibility of a joint venture in the United States. |
(2) It had been 4 weeks since Norio had left, and David had not heard anything about the matter. So David called Norio in Tokyo, and found out that Norio was abroad. After this David wrote to the Japanese company and described his interest in their products suggesting a meeting at their earliest convenience. | |
Emphasis on achieving tangible outcomes | (1) Dave: Would it at all be possible for you to sign a contract or come to some tentative agreement at this point in time? |
(2) Dave: That is right. We have been aiming at the licence with exclusive rights in the North American markets on condition that we would have the first call on our possible future expansion into the European market. | |
Aggressive persuasion | (1) Dave: We did some hard thinking last evening and we have come up with a new proposal that you won’t be able to refuse? |
(2) Dave: (In a rather indignant tone) Are you trying to say that you do not want to stick to matters that we had already tentatively agreed on? If the situation is such we will have to reconsider the concessions we offered you earlier during this discussion. |
Key features of Japanese culture as communicated by the vignette
Collectivistic aspects of Japanese culture | Illustrative excerpts from the vignette |
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High context communication | (1) He had barely uttered the question when he realized that the Japanese were not responding. He noticed, in fact, that one of them was taking a short snooze. |
(2) Ishikawa: (crosses his arms on his chest, looks into the ceiling and mutters). | |
Hmm....it...may...not...be so easy. We will write to you as soon as possible. | |
Relationship orientation | (1) After having dined at one of Tokyo’s exclusive restaurants the Japanese took their guests to what was probably one of the most popular geisha places in town. |
(2) The following day was no different in that it also included a long period of drinking and a visit to the centre of nightlife. | |
Patience | (1) Ishikawa: Maybe we should discuss this at another occasion? |
(2) Ishikawa: We need more time to consider your proposal. | |
Dave: Do you think one more meeting will be needed? | |
Ishikawa: Maybe so. | |
Minimizing uncertainty and developing confidence in their partner | (1) Ishikawa: How much of an assistance do you anticipate you might require from us in effectively utilizing the technology? |
(2) Ishikawa: We understand you are aiming at the European markets right now. Do you have any plans regarding Asia? We would like to familiarize ourselves with your plans having to do with this proposal. | |
Emphasis on intangible outcomes | (1) The Japanese sat silently—avoiding any direct eye contact with the Americans. They then began speaking quietly amongst each other in Japanese. |
(2) Ishikawa: On behalf of Suzuki-san we wish you welcome to our country. We hope your visit will be a pleasant one. Your country, as we all know, is the leading in the world.... | |
(for 15–20 min he goes on to praise the United States for its great achievements and good will). |
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Luomala, H.T., Kumar, R., Singh, J.D. et al. When an Intercultural Business Negotiation Fails: Comparing the Emotions and Behavioural Tendencies of Individualistic and Collectivistic Negotiators. Group Decis Negot 24, 537–561 (2015). https://doi.org/10.1007/s10726-014-9420-8
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DOI: https://doi.org/10.1007/s10726-014-9420-8