Negotiating in the United States and Hong Kong

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in

the

United

and

States

Hong

Kong

CatherineH. Tinsley* GEORGETOWN UNIVERSITY

MadanM. Pillutla** HONG KONG UNIVERSITYOF SCIENCE &TECHNOLOGY

We propose that cultural values (self-enhancement, self-transand cendence, conservatism, openness to change) provide a social environment where some negotiation strategies are selected to survive over others. These selected negotiation strategies become normative. Results from a negotiation simulation in the United States and Hong Kong indicate that U.S. negotiators are more likely to subscribe to selfinterest and joint problem solving norms, and Hong Kong Chinese N

egotiationis the processby which

people attempt to settle what each shall give and take or perform and receive in a transaction between them (Rubin&Brown, 1975). Negotiation is a

negotiators are more likely to subscribe to an equality norm. Further, U.S. negotiators report more satisfaction when they maximize joint gain and Hong Kong Chinese negotiators are happier when they achieve outcome parity. The reported norms and outcome evaluations are consistent with the value profiles of the two cultures. The implications of these cultural differences are discussed in terms of expanding U.S. based negotiation theory. criticalbusiness process,as it is necessarywheneverpeople aredependenton one another for accomplishing objectives (Lewicki, Litterer, Minton & Saunders,1994). Nationalcultural1dif-

Tinsley (PhD Northwestern University) is an Assistant Professor of Management at the McDonough School of Business at Georgetown University. She studies how the international context influences negotiation processes and outcomes, as well as how culture influences cognitive systems and social dynamics, and the implication of these effects for international management.

*Catherine

Pillutla (PhD University of British Columbia) is an Assistant Professor in the Management of Organizations Department at the Hong Kong University of Science and Technology. His research interests include negotiation and decision making, with current research focusing on fairness and trust and the impact of group characteristics on decisions.

**Madan

JOURNAL

OF INTERNATIONAL

BUSINESS STUDIES,

29, 4 (FOURTHQUARTER 1998): 711-728.

711

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NEGOTIATINGIN THEU.S. ANDHONG KONG

ferences in negotiation behavior have been catalogued (cf., Adler, Brahm & Graham, 1992; Graham, 1983; 1985).

Some researchers attribute these differences to culture (Cohen, 1991; Druckman, Benton, Ali & Bagur, 1976; Fisher, 1980; Graham,Mintu & Rogers, 1994; Weiss, 1997), while others are more skeptical of this relationship (Faure & Rubin, 1993; Zartman, 1993). Recent books for practitioners, which purportto teach techniques for negotiating in different cultures (cf., Brake, Walker & Walker, 1995; Hendon, Hendon & Herbig, 1996; Kublin, 1995; Morrison, Conaway & Borden, 1994), suggest a common understanding that cult