The chapter concludes with a number of theoretical and managerial implications. Thus, business and politics cannot be separated. Welcome back to our mini-series about the art of negotiating in the Chinese business culture. However, after searching for articles related to these three cultural levels nowadays in a given database and focusing on a given project management Journal, the results have showed that the number of articles is still limited. Therefore there must be some resources and capabilities in an organization that can facilitate the competitive advantage to company. When adapting to Chinese-style negotiations, task-based, time-conscious foreign partners must balance the need for quick settlement on specific issues and contract terms with the slower-paced and seemingly abstract building of interpersonal relationships.
Negotiating there is a team sport. This paper introduces a third theory of negotiation, something the author calls inventive negotiation. When Tandem Computers attempted to sell its NonStop servers to China Telecom, the sales manager offered an additional 5% off the sale price if the Chinese negotiator agreed to take delivery within a month. Put relative strengths and weaknesses in context After a company gets to knows itself and its Chinese counterpart, it must evaluate the relative strengths and weaknesses of each side within the business context to prepare the negotiation strategy. Building the role of trusted intermediary as part of the team provides a conduit for the all-important informal discussion and is part of Chinese-style operational readiness.
This long-term reciprocity is a cornerstone of enduring personal relationships. How to understand and cope with the diverse patterns of Chinese business behaviour within China poses an increasing challenge to management. Chinese are often more sensitive towards rank and seniority. Trust is the ultimate indicator of Chinese negotiating propensities and role choices. This resulted in less openness and trust from the Chinese side, and business volume was much lower than the Western company originally expected. Chinese culture is relationship-driven guan xi and people-oriented. It can be said that the Chinese trust in only two things: their families and their bank accounts.
The buyer power is high if there are too many alternatives available. Moreover, China's three decades of rapid economic progress and unprecedented interactions with the rest of the world have contributed to an emergent Chinese communication style, which differs from the traditional one. The results were analysed in a qualitative descriptive manner. This difference in style can frustrate Westerners accustomed to measuring progress in a linear way. In fact, the Chinese save almost four times as much as the typical American.
Her father was a war hero. In doing so besure to set forth under what circumstances each might be appropriately used and the potential ramifications of using them too often or too little. Two additional elements contribute to Chinese negotiation style, as well. Also note that because the Chinese are thrifty, they will most likely leave more wiggle room in price negotiations. What impact does this have on Chinese negotiating style? Chinese business negotiators will try to save money through a lot of bargaining over price -. Chinese negotiators will pad their offers with more room to maneuver than most Americans are used to, and they will make concessions on price with great reluctance and only after lengthy discussions.
This also relates to Americans being adversarial. It addresses this fascinating and complex subject by looking systematically at various components of Chinese business culture which range from contemporary Chinese politics to ancient Chinese philosophies and military stratagems. Having to adjust, the Chinese have become more aware of and have been utilizing western business practices. The attention was switched from individual responses to ecological analysis, where participants were aggregated as societal units at the level of the country; and emphasis was put on the examination and application of differences in cultural values at the workplace. Afterward, he treated his customers to another pricey repast. The next conflict handling mode is collaborating. Even though you may feel otherwise, a bit of indifference can help preserve your leverage in any relationship.
Results show that compromising and avoiding are the most preferred methods of conflict management in China, while accommodating and competing lead to more satisfaction during business negotiation. However, when more than one few companies uses the same resources and provide competitive parity are also known as rare resources. On the first day, the talks were tough, but going fairly well and at lunch time, the lead in-house lawyer for the Korean company invited the American side to join us for lunch. As an example of the importance of context, Western corporations often underestimate the degree to which government and business are linked in China. Moreover, it also helps to the extent to which change is useful for the company and also guide the direction for the change.
Persuasion and bargaining strategy Intra-cultural studies suggest that each country has its own cultural style of persuasion. This value may create by increasing differentiation in existing product or decrease its price. This would enable you to be self-sufficient. Based on the philosophical principle of Yin Yang, this paper provides a framework to capture the paradox and change of Chinese communication characteristics in today's changing Chinese society. The company sent a relatively young and low-level sales representative to a high-level negotiation. Huang Zhenhua Dimensions of Success in Business Negotiation A Comparative Study of Chines and Thai Business Negotiators 1.
They believe that all monied expenses are waste, regardless of perceived value added. Another tactic would be to build relationships with other Chinese companies, so that if you need to walk away from a disagreeable company, you can fall back onto another company. Therefore, when confronting conflicts, the Chinese seek to avoid the conflict in order to seek continued harmony. We discuss the implications of our concept and offer suggestions for further research. You will get deals from relationships in China, rather than getting relationships out of deals. Having a direct approach, to the Chinese, damages relationships.