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Case Study

Conducting cross-cultural negotiations

By Michael D. Watkins

12 pages

September 2024

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Reference: IMD-7-2600

This note explores key aspects of cross-cultural negotiations, providing a framework and strategies for conducting successful international transactions. It begins by highlighting the importance of understanding cultural differences in negotiations, focusing on seven key areas: • Communication style • Decision-making processes • Attitude toward time • Relationship expectations • Power distance • Risk tolerance • Emotional display These dimensions are illustrated through comparative examples of negotiations between the UK and Netherlands, and Saudi Arabia and China, demonstrating how cultural differences can impact business interactions. The note then details practical strategies for preparing and conducting cross-cultural negotiations. Key strategies include: • Cultivating cultural intelligence (CQ) • Active listening and adapting communication styles • Building rapport and relationships • Managing expectations • Finding common ground and shared interests • Embracing flexibility in approach A cross-cultural preparation checklist is included covering aspects such as communication style, relationship expectations, time orientation, decision-making processes and logistical considerations.

Learning Objective

Identify key areas of cultural difference that impact international business negotiations
Develop strategies for effective preparation and communication in cross-cultural settings
Apply cultural intelligence techniques to adapt negotiation approaches for diverse contexts
Utilize a cross-cultural preparation checklist to enhance negotiation outcomes in global business

Keywords

Negotiation, Global Business, Leadership, Cross-cultural Management, Cultural Awareness, Communication

Type

Generalized Experience

Available Languages

English

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