Negociacin y Administracin

Intercultural

Vivian Kadelbach
Vivian.Kadelbach@anahuac.mx
Universidad Anahuac, Mxico Norte

Model of cultural assumptions

Assumption
Multidomestic
(ethnocentric)

International
(polycentric)

Multinational
(regiocentric)
Global/
Transnational
(geocentric)

Negotiation Features

Diversity has no impact

International follows domestic

What works locally will be
applied internationally

Diversity causes only problems

Every country is unique

Every subsidiary administers
negotiations locally

Diversity can either lead to

benefits or cause problems

The intent is to design a

regionally integrated
negotiation strategy

Diversity can simultaneously

cause problems and lead to
benefits

Everybody negotiates
similarly
Cultural differences &
similarities impact negotiations

Cultural allies & islands

Most business people think in terms of

geographic regions rather than
cultural allies & islands
Regions are arbitrary
Each region is diverse in terms of
culture, politics, economics, social
structure etc.
At a macro level there are defining
characteristics setting them apart from
each other

Cultural allies
Group I:
Australia, Canada, Great Britain, New
Zealand, Singapore, United States
Common traits: preference for family over
work, and the least cosmopolitan
(multilingual, having international
experience)

Cultural allies (contd)

Group II:
Argentina, Brazil, Italy, Mexico, Spain,
Venezuela
Common traits: more privately held
companies, fewer joint ventures, higher
reliance on trade policy for international
protection

Cultural allies (contd)

Group III:
Austria, Belgium, Finland, France,
Germany, the Netherlands, Sweden
Common traits: most cosmopolitan, more
close partnerships, more pessimistic
about future

Cultural islands
Japan:
Strongest work ethic, greatest concern about work ethic of the rest
of the work force, strongly in favor of free trade
South Korea:
Favors protectionism, country ahead of company, strong sense of
corporate responsibility toward employees, more optimistic about
future
India:
More optimistic about future, strongly favors protectionism
Hungary:
Organizationally different from companies in other countries, very
focused on economic regeneration

Cultural regions around the globe

Africa
Asia
Europe
Latin America
Middle East
North America

Understanding of the predominant

belief systems in a region

Primary belief systems

Buddhism
Christianity
Confucianism
Hinduism
Islam
Judaism
Shintoism
Sikhism
Taoism
Zen

Africa

forgotten continent (except for SA)

Few investment opportunities
Demand for major natural resources
has decreased
Many countries were formed as a result
of colonialism
Cultures are more often associated
with traditional kingdoms or tribes
Culturally: mix of Islamic, Christian and
traditional indigenous beliefs

Africa (contd)

Environment: constraint, low per capita

income, minimal education opportunities,
lack of infrastructures, small middle class,
dependence on foreign aid, change has
been externally driven
Time: fluid, relationships have priorities
over schedules & deadlines, no concern over
the future, respect for traditions
Action: more being than doing oriented,
change is not valued for its own sake,
importance of relationships, leisure & family
are important

Africa (contd)

Communication: high context, indirect, and

inexpressive, politeness & protocol are highly
valued, generous hospitality, status & seniority are
important, proud of achievements, reserved

Space: personal space is closer, space is more

public, reliance on friendship & trust, friendly
touching is common

Power: home to authoritarian leaders, authority is

rarely questioned, free expression is not given a
high value, relationships with top officials are key,
age = wisdom, loyalty is highly valued

Africa (contd)

Individualism: collectivist culture, extended

family & tribes are powerful groups that shape
individual behavior, nepotism, corruption

Competitiveness: emphasis placed on material

success & prosperity, southern African economic
community to create bigger markets for local
products etc., outside of this competitiveness is low
to moderate

Structure: life is neither rigid nor highly regulated,

red tape, bureaucracies are large & inefficient
Thinking: socioeconomic progress &
effectiveness are impeded by decision making
based on symbolic & mythological thought,
confusion of symbol & substance

Asia

Wide cultural diversity

Profound economic opportunity
Competitive challenge
Largest continental land mass (over
30%) & highest percentage of worlds
population (over 56%)
Region of deep contrast
Highest economic growth since WWII
Ancient philosophical & religious
traditions

Asia

Environment: harmony/constraint mixes due to

predominant philosophies, close attention to change
in circumstance, decision making may take longer,
implementation is faster

Time: single focused (less developed countries:

multi-focused), strong past & long term future
orientation, sense of urgency lower, high sense of
personal identification with history, collectivist, long
term oriented

Action: being & doing orientation, emphasis on

hard work & relationships, entertainment is key

Asia

Communication: formalities are important,

inside & outside group, indirect, high context, self
controlled

Space: public office spaces, personal space

requirements more distant that LA, touching
avoided, private offices are rare, sitting positions
reveal power

Power: hierarchy or soft authoritarianism and

authoritarian pluralism, paternalistic authority, large
difference between power levels between managers
& subordinates
Individualism: not highly valued, entrepreneurial
spirit in HK, Taiwan, China, loyalty to work
organization, collectivist orientation

Asia (contd)

Competitiveness: variations across countries,

Japan, HK, Philippines are highly competitive,
seniority and collectivism are still key

Structure: values regarding structure vary, high

value on structure, order & control, high value
placed on structure = stronger value placed on
consensus, low value on legalism

Thinking: difficult for Westerners to comprehend,

be open minded and flexible

Europe

Radical change over the past 2 decades

Patchwork of cultures
Increased economic cooperation but deep
cultural identities that shape the continent
Cultural divisions:
North: Norway, Sweden, Denmark,
Finland, Iceland
West: France, Germany, UK, Ireland,
Belgium, Netherlands)
South: Italy, Spain, Portugal, Greece
East: Russia, Poland, Hungary,
Romania, Bulgaria, Baltic States

Europe (contd)

Environment: mix of mastery, harmony &

constraint, risk averse, suspicious of change,
history weighs heavily
Time: respect for tradition, progress &
change are not that important, long-term
goals, no short-term future urgency, singlefocus orientation to time (except for south),
time is important (more fluid in the south)
Action: quality of life, family is important,
leisure time & vacations, achievement is
valued but activity is not, business is given
lower priority, split between work & social life

Europe (contd)

Communication: large variations, indirect

(UK), direct & confrontational (France),
expressive (south), high level of formality,
respect is key, once trust is built, formalities
are dropped
Space: Personal space requirements vary,
Power: power orientation varies, hierarchy is
pronounced, power flows from the top down,
workforce is well trained & educated, long
tenure with the same company

Europe (contd)

Individualism: high value on individualism,

acceptable to be an individual, but within the context
of strong group affiliations, decision making is group
oriented, loyalty is a key success factor
Competitiveness: competitiveness is valued,
some northern countries value quality of life &
interdependence
Structure: high value on structure in southern
Europe, Belgium, France & Germany, risk aversity
Thinking: different thinking styles - from
deductive, holistic (French) to pragmatic, linear (UK)
> in general more deductive & holistic

Latin America

Common mistake is to think of the region as

homogeneous
Cultural heritage derived from Spain,
Portugal and other European countries
Ambivalent attitude toward the US
Nationalism and cultural pride
Strong emphasis on obligations to family &
friends
Hierarchical power structures

Latin America (contd)

Environment: belief that human beings are

controlled by forces of nature & the
environment, hard work, fate & luck
determine success, adjustment rather than
change
Time: history & tradition are highly valued,
multifocus, past & present orientation,
overlap between business, family & social,
time is fluid
Action: being orientation, trust is critical,
leisure & companionship are key

Latin America

Communication: high context, implicit meaning,

formal, indirect, serious, subjective, expressive,
argumentative at times
Space: closer distances, physical contact is more
frequent, offices are more public, at higher levels
they become private
Power: high value on hierarchy & rank, leadership
style is autocratic & authoritarian, managers
demand respect due to rank, little questioning of
authority, conflicts are resolved by those in power,
face saving

Latin America

Individualism: highly valued but within the

context of loyalty to and involvement with groups,
individual is defined by unique qualities of character
& connection, nepotism, loyalty, workers execute
tasks under managers direction
Competitiveness: varies, concern for quality of
life
Structure: ambivalent, uncertainty, change, risk
are generally avoided, centralized or authoritative
decision making, emphasis on particular vs.
universal
Thinking: deductive & holistic, less concerned
with facts & figures than with concepts & ideas,
decisions based on intuition & judgment

Middle East
Very complex region
Tension between traditional religious belief & new
cultural practices
Many of the elites have been educated in the West
Influence of French culture in former colonies
Middle Eastern culture & religion are inseparable
Religion is the primary cultural factor shaping
perceptions and influencing behavior
Every Arab country in the region (except Lebanon)
recognizes Islam as its state religion
Jewish & Christian strands weave themselves
through the region

Middle East
Environment: belief that human beings are
controlled by forces in nature & the environment;
emphasis on fate and will of God
Time: strongly rooted in the past; preserving
traditions & customs; slower pace of business;
multifocused; flexibility regarding deadlines &
schedules; interruptions in meetings are common
Action: more being than doing; who a person is is
key; relationships & religion come before business;
privacy regarding female family members

Middle East
Communication: face-to-face discussion; display
of emotions indicates sincerity; speaking tone
depends on persons social position; negotiation &
bargaining are highly developed; indirect
communication (except Israel); politeness is
important; dramatic gestures; exaggerated
language; direct eye contact; touching & embracing
among men; formality is critical; dos & taboos
related to Islam are critical
Space: close distance; looking into eyes; body
language (dont show sole of feet; dont show back;
dont use left hand; dont sneeze loudly in public);
elaborate codes for body language

Middle East
Power: value of hierarchical position; status &
affiliation based on familial connections; highly
bureaucratic organizational structure; power &
authority at the top; authoritarian leadership; rigid
chain of command; top manager makes decisions;
centralized business structures; leaders deal with
intermediaries or contact makers
Individualism: low value on individualism;
working your way up in an organization is not
common; decisions are in the hands of a few
powerful men

Middle East
Competitiveness: mix between concerns for
quality of life & material success; success in
business depends on education & being a member
of a well known family; rituals of negotiation;
bargaining is key; initial demands are likely to be
high with concessions being made
Structure: highly valued; preserved by autocratic
decision making; well defined roles &
responsibilities; uncertain or ambiguous situations
can appear as threatening; broad contracts; women
are not involved in business dealings
Thinking: deductive & systemic with a high degree
of intuition; big picture over details; language over
ideas over facts

North America
Predominant cultures of North America (US
& Canada) are rooted in Europe
Today, new immigrants from Asia and Latin
America are changing this picture
In a globalized world, its diverse population
could be its greatest asset
Immigrants eventually assimilate but also
bring lasting cultural traits that affect the
wider population
Separate cultural distinctiveness of Canada
is a source of continual debate

North America
Environment: human beings are superior to, and
set apart from the rest of the environment; take
control & shape nature to their purposes; self-help
worldview is unique; ideas as levers of change;
culture driven by entrepreneurship; seeking change
Time: time is valued; present is most important;
time is a limited resource; efficiency & punctuality
are valued; single focus orientation; short term future
is critical; short term profitability
Action: doers; doing-oriented culture; results,
behaviors & actions speak louder than words;
getting things done

North America
Communication: low-context cultures; task
accomplishment rather than relationships; informal;
direct; instrumental; focus on accuracy and getting
fast results; freedom to express opinions; conflict is
part of life and is appreciated
Space: private space orientation
Power: no high value placed on hierarchy; respect
authority of higher management levels; maintain
professional distance; decisions based on input from
various levels; create flatter structures; eliminate
bureaucracy; empower employees
Individualism: individualism is key; rewards are
based on performance rather than need;
negotiations often alone and not in teams

North America
Competitiveness: highly competitive; material
success & achievement are key; competition is a
given
Structure: low value on structure; uncertainty is
not feared; creation of flexible structures &
empowerment; tendency toward legalism; detailed
contracts
Thinking: inductive & linear; conceptual
arguments without supporting quantitative data lack
credibility; practicality & efficiency are stressed over
intellectual correctness & theory; will it work?;
thought rooted in concrete evidence rather than
intuition