Industrialization and globalization are the key driving forces

Industrialization and globalization are the key
driving forces connecting different nations in the global economy. The effects
of globalization can be seen by the constant change in the business world and growing
popularity of cross border interactions. The numbers of international
agreements are rapidly increasing to secure peace and as well as economic,
environmental and social development across the globe. In order to reach an
agreement, two or more parties that share the same and conflicting interests
interact in a negotiation process.1The negotiating parties can
be representatives of a country, company, or an organization. This study will
analyze the different negotiation styles across cultures with focus on the United
Kingdom (UK), United States of America (US) and Germany in a business to
business situation (B2B).

 

Before understanding each of the country’s negotiation
style, the terms negotiation and culture will be addressed in the first and
second part of this research paper. The factor of national cultural differences
makes negotiations that occur across national boundaries more complex than
those that occur in a domestic setting i.e. within national boundaries. Because
national cultures differ, negotiation styles across nations also differ. It is
therefore the aim of this paper to explore possible reasons why the negotiation
styles differ and the sources of those styles. This will be addressed in the
last part and how these negotiation styles are closely linked to the dimensions
of culture. The cultural dimensions will be explained from the point of view of
a well-respected Dutch anthropologist known as Hofstede. The Negotiation
Process and stages of a Negotiation will also be identified in this paper and
most importantly how the elements of the negotiation process can be related to
Hofstede’s cultural dimensions.

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Negotiation styles are based on Western stereotypical
concepts. These concepts do reflect ideas of cultures, social structures and
values of members taking part in a negotiation. Stereotypes however do not
completely portray a picture of reality, hence negotiation styles can either be
exaggerated or over-simplified. As a result, the research paper will provide a
conceptual starting point from which to build insight into identifying a
negotiation style not only from the 3 countries mentioned in this paper but
also as a guideline to help identify the negotiation styles of other countries.

 

 

 

 

 

1 D.W. Hendon, et al., Cross-Cultural
Business Negotiations, Westport, Quorum, 1996, p. 1.