Case Study

Conducting cross-cultural negotiations

12 pages
September 2024
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
Copyright
© 2024
Available Languages
English
Case clearing houses
IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Discover our latest research
IMD's faculty and research teams publish articles, case studies, books and reports on a wide range of topics