Know the essential keys to negotiate across cultures

How to grasp the typology of negotiators

Negotiating with people from different cultures can be challenging. You need to understand their values, beliefs, and communication styles and adapt your own accordingly. Acquiring the keys to understanding and adapting to the negotiation context will help you navigate the cultural complexity of global trade.

Communication is not only about words, but also about nonverbal cues, emotions, and intentions. Pay attention to the subtle signals that our counterparts may be sending us, especially when we are negotiating across cultures.

“We cannot not communicate. Communication is expressed as much by gestures and silences as by words and deeds.”
Gregory Bateson

It can sometimes be complicated to decrypt the cultural complexity of the countries in which the company wishes to establish itself or distribute its products. Knowing the different components of the culture of the target country facilitates commercial negotiation and the implementation of the product by allowing you to adapt to the interlocutor.

For example, in Japan, the verbal agreement prevails and has an indisputable value. Whereas in Anglo-Saxon countries, written commitments are the most important. This means that negotiators from Japan may expect a high level of trust and respect from their counterparts, while negotiators from Anglo-Saxon countries may rely more on contracts and legal documents (1).

Thus, the way of greeting and the interpersonal distance varies according to the cultures: it is greater among the Japanese than among the Americans or among the French, which varies according to whether they are from the North or the South. For instance, negotiators from Japan may bow as a sign of respect and avoid physical contact, while negotiators from France may kiss on both cheeks or shake hands warmly (1).

In some, such as Europe, the United States or Australia, the pursuit of personal interests prevails, in others, such as Japan, the interest of the group is privileged.

Example: In a negotiation between a U.S. company and a Japanese company, the U.S. negotiators were frustrated by the Japanese negotiators’ reluctance to say “no” directly or to give clear feedback. They interpreted this as a sign of dishonesty or indecision. The Japanese negotiators, on the other hand, were offended by the U.S. negotiators’ blunt and confrontational style. They viewed this as a lack of respect and politeness (2).

Know your negotiation style

Different cultures have different preferences for how to negotiate. Some value individualism and competition, while others value collectivism and cooperation. Some rely on verbal agreements and trust, while others require written contracts and evidence. Some are comfortable with ambiguity and flexibility, while others prefer clarity and structure.

To negotiate effectively, you need to know your own style and how it compares with that of your counterpart. You also need to be aware of how your style might be perceived by others. For example, if you are from a culture that values directness and assertiveness, you might come across as rude or aggressive to someone from a culture that values indirectness and harmony.

Example: In a negotiation between a Brazilian company and a Canadian company, the Brazilian negotiators were prepared with data and analysis to support their position. They were collaborative by seeking win-win solutions and emphasizing their long-term relationship. They were innovative by proposing different scenarios and combinations of issues. They were integrative by offering discounts in exchange for volume orders (3).

Learn about your counterpart’s culture

Before you enter a negotiation, do some research on the culture of your counterpart. You can use various frameworks and dimensions to compare and contrast cultures, such as:

Power distance: How much do people accept and expect unequal distribution of power and authority? The way of apprehending power and hierarchy differs according to the cultures. Thus the hierarchical distance is an indicator of the mode of power.
Masculinity vs. femininity: Distribution of roles between men and women vary across cultures. How much do people emphasize assertiveness and dominance versus cooperation and care? In masculine cultures such as Japan or Latin countries: men assume a more assertive and dominant role. In female cultures such as in the Nordic countries: roles are evenly distributed between the sexes.
Uncertainty avoidance: How much do people tolerate ambiguity and risk versus seeking certainty and security?
Individualism vs. collectivism: How much do people prioritize their own interests versus those of their group or society? In societies dominated by individualism, it is the individual who is valued, by seeking competition between individuals, the search for personal efficiency. In predominantly collectivist societies, priority will be given to the team, to cooperation within the team.
Time orientation: How much do people focus on the past, present, or future versus balancing them all? Time does not have the same value depending on the culture.
- In mono-chromic cultures: time is considered a resource to be managed. We do one thing at a time, we focus on the work in progress, respecting deadlines and respecting the rules issued. For example, negotiators from mono-chromic cultures such as Germany or Switzerland may be very punctual and stick to a strict agenda during meetings.
- In poly-chronic cultures: we do several things at the same time, without feeling constrained by deadlines. You can stop a task and resume it later without scruple. The important thing is to respect the commitments not necessarily the deadlines. Negotiators from poly-chronic cultures such as Brazil or Morocco may be more flexible with time and allow for interruptions or changes in plans (1).

These dimensions can help you understand the general tendencies and expectations of different cultures, but they are not absolute or deterministic. You should also be mindful of the diversity and variability within each culture, as well as the influence of other factors such as personality, context, and situation.

Example: In a negotiation between a French company and a German company, the French negotiators were more comfortable with uncertainty and ambiguity than the German negotiators. They preferred to explore multiple options and scenarios before making a decision. The German negotiators, on the other hand, were more risk-averse and detail-oriented than the French negotiators. They wanted to have clear rules and procedures for every aspect of the deal (4).

How to adapt your management style

Social position is approached differently in different cultures. It depends a lot on the history of the country.

In Northern Europe and Germany, we will prefer a participatory approach made of consultation and listening and avoid all outward signs of wealth… Whereas in Latin countries, one will find a more directive, even paternalistic approach with a need for obedience to superiors and a pyramidal organization chart.

In France, for example, socio-professional relationships are organized into strata linked to the old regime (Clergy, Nobility, Third Estates). Initial training is essential.

In the United States, these relationships are relationships of equals, with a notion of contract, in reference to the ethics of the country’s Founding Fathers. But just like in the Scandinavian countries, the status is deserved.

In the Netherlands, social relations are marked by the search for consensus.

In Asia or in the Mediterranean countries, the status is granted. In Japan, the status depends on age and gender.

Example: In a negotiation between an Israeli company and an Egyptian company, the Israeli negotiators used humor as a way to break the ice and establish rapport with the Egyptian negotiators. However, some of their jokes were perceived as insensitive or disrespectful by the Egyptians, who felt that humor was inappropriate for a serious business discussion. The Egyptians also felt uncomfortable with the Israeli negotiators’ frequent interruptions and gestures (5).

Negotiating across cultures can be rewarding if you approach it with curiosity, respect, and flexibility. By following these tips, you can improve your cross-cultural competence and achieve better outcomes for yourself and your organization.

In summary, the essential keys to negotiate across cultures are :

To negotiate with people from different cultures, you need to understand and to adapt to their values, beliefs, and communication styles.
Paying attention to nonverbal cues, emotions, and intentions, and using various frameworks and dimensions to compare and contrast cultures.
The different cultures approach negotiation differently, such as in terms of power distance, masculinity vs. femininity, uncertainty avoidance, individualism vs. collectivism, and time orientation.
Negotiating across cultures can be rewarding if you approach it with curiosity, respect, and flexibility.

“The most important thing in communication is to hear what isn’t being said.”
Peter Drucker

References :

How to Deal with Cultural Differences in Negotiation
Salacuse JW (2005) The Global Negotiator: Making Managing And Mending Deals Around The World In The Twenty-First Century New York NY: Palgrave Macmillan.
Lewicki RJ Saunders DM Minton JW Barry B (2015) Negotiation (7th ed.). New York NY: McGraw-Hill Education.
Brett JM (2001) Negotiating Globally: How to Negotiate Deals Resolve Disputes And Make Decisions Across Cultural Boundaries (1st ed.). San Francisco CA: Jossey-Bass.
Adler NJ (2008) International Dimensions of Organizational Behavior (5th ed.). Mason OH: Thomson South-Western.