The Influence of Culture on International Business Negotiations

Abstract

International business negotiations face differences between different cultures. Cultural dimensions can affect the negotiation processes that take place between representatives of different cultures in the negotiations. As a result of the cultural difference between the negotiating parties, there may be many misunderstandings. This paper discusses the impact of cultural dimensions on the conduct of international business negotiation processes. Twenty previous studies on international business negotiation and cultural differences were reviewed and analyzed. Conflicts between negotiating partners often arise due to differences in preferences, tactics, perceptions, and partnership objectives that lead to the risk of opportunistic behavior and the private initiatives of each country. The findings of this study show that preparation for negotiation is one of the most effective methods for the success of international business negotiations. Preparation includes the study and analysis of the other party and attention to the context of the negotiations by collecting and organizing information. Negotiation context is an essential component of successful negotiation strategies. The research contributed to enriching the subject of international business negotiations and advises future researchers to focus on the positive aspect of the impact of cultural differences on international business.