The dynamics of international business negotiations

The negotiation of contractual agreements

“…Finally, the parties may be working across cultural boundaries where there are very different standards for how a contract negotiation is conducted. Cross-cultural contract negotiation must confront issues surrounding different legal and political systems, different cultural values that give rise to different styles of negotiating, and other influential considerations (Brett, 2014; Phatak and Habib, 1996). This raises a number of complications in seeking to produce an agreement where both parties are truly on the same wavelength: differences in protocol, the meaning of verbal and nonverbal messages, time sensitivity, the ethicality of certain negotiating tactics and so on are factors that tend to be taken for granted within a culture.…”

Bahasa, Batik, and Bargaining: An Exploratory Study of the Negotiation Styles and Behaviors of Indonesian Managers

“…Business relationships and transactions increasingly transcend national and cultural boundaries. In order to minimize conflict flash points in the negotiation process, it is imperative for negotiators to be fully aware of the various cultural nuances and communication issues that are relevant to the opposing negotiating team (Tinsley, Curhan, & Kwak, 1999;Graham, Mintu, & Rodgers, 1994;Heiba, 1984;Phatak & Habib, 1996;Joy, 1989). As well as an awareness of the national cultural dimensions of the opposing negotiators, it is important to be aware of the different ethnic and regional differences of the negotiation participants (Adler, Graham, & Gehrke, 1988).…”

“…Thomas (2006) describes this ability for a person to adapt behavior and interact effectively with people from divergent cultures as cultural intelligence. Low cultural intelligence and cultural misunderstandings may influence behaviors of international business negotiators negatively (Phatak & Habib, 1996) and potentially limit their receptiveness to business opportunities. Therefore, international managers need to understand national cultural differences when operating in foreign environments such as Indonesia if they are to maintain good working relationships (Triandis, 2006).…”

Navigating Ambiguity: Distributive and Integrative Negotiation Tactics in China

“…Chinese negotiators are influenced by their cultural traditions and immediate context (Phatak & Habib, 1996). Their negotiating style originates from a complex mixture of traditional culture, most importantly Confucianism, but also the so-called War Stratagems (Sun Tzu's "Art of War" or the "36 Stratagems" are the most renowned works) and, according to Sebenius & Qian (2008, p. 6), in recent times the so-called Guo Qing -"the milieu in which Chinese business culture evolved."…”