Cultural differences can influence business negotiations in significant and unexpected ways, as many a hapless deal maker has learned. In some cases, it’s a matter of ignorance or blatant disrespect, as with the American salesman who presented a potential Saudi Arabian client with a multimillion-dollar proposal in a pigskin binder, considered vile in many Muslim cultures. He was unceremoniously tossed out and his company blacklisted from working with Saudi businesses. But the differences can be much more subtle, arising from deep-seated cultural tendencies that influence how people interact—everything from how people view the role of the individual versus the group to their attitudes, say, about the importance of time or relationships. In response to these challenges, a great body of literature has emerged to help executives navigate differences not only in protocol and deportment but in deeper cultural tendencies as well.
The Hidden Challenge of Cross-Border Negotiations
International deal makers have long bowed to local traditions and etiquette. But new research suggests they also need to understand something deeper—the subtle yet potent ways that national culture shapes the governance and decision-making process.
A version of this article appeared in the March 2002 issue of Harvard Business Review.