The influence of culture on negotiations 1

The Influence of Culture on Negotiations

Praveen S. Perera

Cambrian College of Applied Arts and Technology

Negotiation and Leadership MOG-1010 (BAGC)

Proffesor James Burke

August 18, 2021

Introduction

Conflict resolution is deeply influenced by culture, as each party approaches the

negotiation process with a distinctly different attitude, behaviour, and reaction as compared to

the other party. In some cases, culture can play a decisive role in determining whether a conflict

resolution will be successful. Among the many issues related to international negotiations, the

most prominent one has been the influence of culture on negotiation. This paper seeks to

understand what is meant by culture, the different factors that surround and influence it, and then

point out how such factors play an essential role in negotiations. Further, this paper aims to

provide an insight into how cross-cultural negotiation differs from traditional negotiation

practices, thus affecting the reader's evaluation of the importance of culture in any negotiation.

Discussion

Before diving into the main topic, it is important to define two main terms of the topic:

Culture and Negotiation. The Cambridge dictionary defines culture as “the way of life, especially

the general customs and beliefs, of a particular group of people at a particular time”. (Cambridge

Dictionary, 2021) It is important to note that definitions highlights term “particular group of

people”, which means that culture is a group behaviour and “particular time”, which means that

depending on the time era, culture can be different for the same group of people. Fisher and Ury

in their 1991 book  Getting to Yes : Negotiating Agreement without Giving In defines negotiating

as a “back-and-forth communication designed to reach an agreement when you and the other side

have some interests that are shared and others that are opposed.” (Fisher & Ury, 1991)
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The impact of culture on negotiation has been extensively explored by anthropologists

and sociologists. In his study of culture and negotiation, Robert Janosik derived four distinct

approaches. As a first principle, culture is a learned behaviour. This means that there is a strong

focus on actions without paying much attention to why these actions were taken. Secondly,

culture refers to fundamental values that are shared. The philosophy implies that 'thinking

precedes action' and his cultural context will determine his thinking patterns. The third principal

discusses how culture is formed due to the dialectic tension between paired, opposing values,

such as individualism, collectivism, idealism, and pragmatism. The final approach states that

cultural explanations of negotiation behaviour draw on a systems theory and offer multiple

causal explanations. (Janosik, 2007)

Many publications and books have discussed Hofstede and his five dimensions of country

culture variation. It is his opinion that these five dimensions represent the fundamental problems

that any society faces but for which there are varying solutions. These five dimensions are briefly

discussed below. (Hofstede Insights, 2021)

1. Power Distance - Power inequality in a society is expressed in this way by the degree to

which less powerful members accept and expect power to be unequally distributed.

2. Uncertainty Avoidance - Uncertainty Avoidance refers to how uncomfortable members

of a society feel when faced with uncertainty and ambiguity.

3. Individualism and Collectivism – Individualism can be identified as the preference for a

loosely-knit social framework that is expected to provide for only the immediate needs of

the individual and his or her immediate family. Collectivism, on the other hand, aims at

creating a society where a person can count on his or her relatives or members of a

particular ingroup to look after them without question.

4. Masculinity and Feminity - In society, the masculine side refers to the qualities of

achievements, heroism, assertiveness, and material rewards. Femininity, on the other

hand, emphasizes cooperation, modesty, caring for the weak, and quality of life.

5. Long-term and Short-term Orientation - A society must maintain certain links to its past

while facing current and future challenges. Depending on society, these existential goals

may be prioritized differently.

Salacuse introduces a ten negotiation factors and explains how each of these factors gets

impacted by culture when negotiating. (Salacuse, 2005) These are illustrated in Figure 1.

Figure 1 - The Impacts of Culture on Negotiation

Different types of negotiation are influenced by culture in different ways depending on

factors like overlapping cultures or clashing cultures, as well as external factors such as specific

goals and the number of parties. In addition to this complexity, culture affects negotiation

differently based on how individuals accept and apply cultural influences. As personalities,

training, and other variables independent of culture are in play, people reflect certain aspects of

their ethnicity, nationality, religion, profession, or occupation to varying degrees when it comes
The influence of culture on negotiations 5

to negotiations. Hence in international negotiations, cultural factors can present additional

obstacles, depending on both the individual parties involved and the cultural context.

No matter if it is formal or informal, egalitarian or ranked based, culture influences the

dynamics within a negotiating team. As a result, the team may be more inclined to share

information directly, avoid revealing it, or reveal it only indirectly. It is often the case that

negotiation ethics vary from culture to culture, with deception, bribery, and bluffing all viewed

in vastly different ways. Therefore, understanding the cultural backgrounds of the other party is

of utmost important prior to going for a negotiation.

Conclusion

Cultures are unique to each person. In fact, everyone can possess several cultures. These

cultural groups may share similar races, ethnicities, or nationalities. In addition, they also stem

from generational, socioeconomic, class, and sexual divisions, as well as ability and

accessibility, language, and gender as well as political and religious affiliations. Hence,

negotiators should not stereotype someone by looking at his or her nationality as his or her

“culture” can be totally different based on other factors mentioned above.

With the technological advancement, social media platforms can be used to determine

what an induvial or an organization believes in and likes. This can be an effective tool in

understanding the other party’s culture before going in for a negotiation. These insights can be

used to the negotiator’s advantage if handled properly. Being in the same wavelength as the other

party will be helpful in getting what the negotiator wants and often times arriving at a win-win

situation.
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In the same way that Hofstede's onion places value at the center of culture, culture is at

the center of negotiation. No matter how well each side does with the paperwork and statistics of

the deal, if the culture of the other party is not understood, the negotiation will not succeed.

Hence for negotiators to be successful internationally, they must be highly sensitive to cultural

factors, identify and employ a culturally responsive strategy that is most appropriate in the given

negotiation setting, yet also acknowledge and consider both the individual and structural factors

that occur in this context.

Reference

Cambridge Dictionary. (2021, August 18). Culture. Retrieved from Cambridge Dictionary:
https://dictionary.cambridge.org/dictionary/english/culture
Fisher, R., & Ury, W. (1991). Getting to Yes: Negotiating Agreement Without Giving In. Boston:
Houghton Mifflin.
Hofstede Insights. (2021, August 18). NATIONAL CULTURE. Retrieved from Hofstede Insights:
https://hi.hofstede-insights.com/national-culture
Janosik, R. (2007). Rethinking the Culture‐Negotiation Link. Negotiation Journal, 385-395.
Salacuse, J. W. (2005). Negotiating: The top ten ways that culture can affect your negotiation.
Ivey Business Journal.