Cross-Cultural Management in International Business Negotiations
Significant growth in international business during recent years has been seen concerning the development of globalization. Several companies want to obtain a greater market due to which they globalize their management as well as operations that will give developers more opportunities in the market. Cross-cultural management is related to the conclusive study of different aspects of management in cross-cultural management which mainly includes the study of influencing the society’s culture and practices which has been related to management. The approach is mainly used for managing the cultural management activities where the cross-cultural management helps the individual from different cultures. It helps in analyzing the different types of cultures.
The international negotiations of the business get to increase that involves different cultural background persons in the MNC. The opportunities that are obtained by the company accompany several challenges as well as different cultural differences due to which the business has to face certain difficulties during business activities. People working in an MNC have different meanings about the culture of the company. When international business activities involve the proper understanding of cross-cultural management. It is considered important concerning international business negotiations. The purpose of the paper is to emphasize cross-cultural management which is considered important in international business negotiations. The paper will recognize certain reasons as well as arguments based on the literature review on cross-cultural management. The paper will accomplish certain examples which will demonstrate the cultural framework established by the MNC as well as their strategy will be seen regarding cross-culture management.
Cross-culture management can be useful for planning negotiations concerning the new international joint venture with respect to the joint partner by following certain strategies. There must be understanding in the blind spots like they can arrive at a negotiation table through the way of development of cultural biases as well as development. It is important for promoting the natural responses that are based on cross-cultural situations. The international company has the opportunity to identify the cultural gaps during negotiation through the way of considering the scope as well as nature of the challenges. The company can conduct some research for identifying the cultural gaps so that steps can be taken to remove such obstacles. Once an international company has identified the gaps during negotiation then they can refine the negotiation strategy due to which they can close the gaps and form a joint venture with a domestic partner. The negotiation factor helps in avoiding the intercultural negotiation helps in avoiding the differences through the foreign counterpart that provides assistance in understanding the behaviour of the market. The cultural management plans strategy for the international joint venture with a domestic partner. Joint ventures are resolving conflicts with cultural differences and improve the negotiation capabilities of a company.
According to Romani the cross-culture has been defined with respect to a positivist paradigm that defines as self-contained, stable phenomena and separate. It covers distinct features like observed, manipulated and measured. The seminal study of Hofstede determines the quantifiable relationship between the national culture as well as organizational practices. It recognizes a long-lasting focus based on the national culture. Hofstede’s study determines the different range of topics which are at the interpersonal level like conflict management, leadership and group process. The author defines cross-culture with interpretive studies where the culture is considered as an interpretive framework that involves common socialization.
Strategies for Planning Negotiations
There is a difference between internal negotiations as well as an environment that involves some external factors like legal, social diversity, political and economic. These factors are not influenced by anything and it gives uncertainty. According to Naghavi, culture is based upon certain elements concerning human mentality as well as human behavior like tradition, attitudes, language, ideology and societal norms. While negotiations are considered a portion of human activity that has the connection with problem-solving that involves any kind of dispute resolution. Hofstede’s study has described that the national culture is regarded as a term that has a direct effect upon the activities concerning organizational culture that include national cultural norms, beliefs and values through the manner of the societal establishment.
According to Owusu, a theory namely the resource-based view prescribes the organizational culture which is considered a unique theory allowing the organizations for making a distinction from the competitors. The culture has been defined by the theory as subtle, intangible resource and managerial which contributes to competitive advantage. For example, an online program was developed by IBM for evaluating the cultural norms where there is the involvement of business activities. The program established by them is considered as different during the examination of the culture that includes relationship orientation in comparison to task, style regarding the decision-making process and direct as well as indirect communication styles. It is Watson is considered the first business leader who has focuses on the creation of the culture for the company. A motto adopted by the company is, “THINK” and no attempt was made the imposition of a strong culture. The company’s motto is considered one aspect of the culture of IBM. It was designed for providing respect to the employees, excellence of employees and providing the best customer service.
Hofstede defines national culture as collective mental programming which involves the mind in the context countrywide. The work of Hofstede has touched its benchmark that is made against new things related to cultural differences. According to Rungruang, culture is considered a significant factor in terms of multinational management and it is the most challenging task that has been faced by MNC. There is a HoRenSo which is a Japanese business culture that is referred to as their culture symbol. Culture management has laid the foundation for managers, colleagues, superiors and subordinates within the company. Some research says that Thai business culture has some similarity with the Japanese culture related to business relationship which involves personal relations. The organizational culture of Japan involves the procedures where the right person will be employed in the right job, increasing organizational commitment, controlling the performance of an employee and designing the best culture for the company. HoRenSo is considered an activity that involves interaction among the subordinate and the superior when they were operating in the project.
An international joint venture is considered a strategic partnership that focuses on equities involving two organizations. A cross-cultural is considered a risk sensitivity which is different in several countries. There are certain gaps that determine the complex company management as well as different cultural institutions which influence certain performance that is based on joint ventures. The employees concerning joint ventures have to efficiently work together within a multicultural background. It is said that for a joint venture the resolution of conflicts arises due to the reason of cultural differences. Also, there are improving negotiation capabilities that are considered critical with respect to the company. For example, direct, as well as confrontational legal tactics, are preferred by American managers for dealing with several other companies during the failure of other methods. The Japanese executive gives preference to unfolding issues due to which they try to avoid the use of formal as well as detailed contracts which gives stress on the strict performance. There are four dimensions concerning the national culture that includes individualism, distance, power and uncertainty avoidance. The dimension related to individualism-collectivism involves some tendencies for putting down more values concerning the interest of an individual.
National Culture and Organizational Culture
The theory of Hofstede’s cultural dimensions is regarded as a framework to measure cultural dimensions within the global perspective When a company is negotiating internationally then the cultural differences among them make such kind of process more difficult. The company has to make sure that its objectives are fulfilled and also, they want their employees to respect the company. Also, they want that the cultural norms to be followed. The company can overcome the cultural differences barrier by choosing a person that can interpret for them and the company will properly match with the cultural norms of the country in which they are expanding. TCL is a Chinese electronics organization where it has a joint venture with Alcatel which is located in France for cross-cultural management TCL manages by developing an effective communication strategy in the organization by organizing the training and cultural programs for managing the employees. The TCL company hires some intercultural trainers where the employees receive certain training when they carry their business in Africa. Therefore, TCL company while forming a joint venture also focuses on the cultural barriers and obtaining new strategies for overcoming such problems. Also, they know the business standards for which they have to require international business skills at the tie of negotiation. The employee working at the company makes use of such training that they have learnt during their training period. As they wanted to maintain a company culture environment and also wanted to improve the communication which the employees made with their clients in Africa. This training reduces the chances of failure in cross-culture management. The employees have learnt such things in the training while dealing with clients as well as African professionals. The employees are required to express themselves and they just do not have to be dependent upon logic for explaining several points. During the training period, there has been an alteration in the manner of communication that the employees follow at the time of dealing with clients.
Certain cultural differences exist when an international company targets negotiations then they have to develop some strategies for managing the cross-cultural management. Also, the company have to develop a negotiation style where they can form a win-win situation among the local employees this strategy might be unsuccessful in certain areas but some companies are there that follow a cohesive cultural environment. Alcatel has a joint venture with Lucent with a strategic advantage over its competitors where the merger is critically managed with strategic alliance and training programs which will help in dealing with the issue where the employees spend time with each other through participating in group activities and learn about the organizational process of the company with developing a cohesive culture in the organizations. The company promotes the culture by encouraging team building activities by providing an open environment for the employees so they can communicate with each other effectively where for managing the conflicts in the organization the company formulates individual departments for addressing the conflicts immediately. Meanwhile, the company has made several attempts in introducing a different nationality with respect to its board of administration. It will put an end to several stereotypes which are been surrounded them through their image. In such a way the joint venture, as well as the creation of affiliates, is considered more natural as well as easier. Due to the reason that tach individual is considered as represented and heard.
Cross-Cultural Management and Joint Ventures
Another example is an entrepreneur who makes use of Romanian that has experience in the field of management as well as oversees the activities of the business. He has the authority which he has delegated as well as confidentiality with respect to Romanian employees. A direct route has been set by them related to local culture comprehension as well as recognizing the institution. Secondly is the indirect management that is made through the Romanian workers. The business transition can be referred to as possible as there have been institutional constraints with respect to the company. However, the respective process is considered important in terms of the institutional environment.
To conclude, international joint ventures are considered as important concerning to the global economy. Also, certain problems are been faced that affect the economic activities globally. To enable the incorporation of various corporate cultures, cross-cultural management has to be used correctly by MNC. It is considered as successful when negotiations are used as there will be a success with respect to international joint ventures. The literature review has identified cultural conflicts as they are regarded as an important factor that involves instability in terms of joint ventures. There has been clarity with respect to the vision concerning the planned business entity which is made within the planning stage. It involves international negotiations for ensuring a successful outcome. The Managers are required to invest more time in the planning process for understanding the motivations of other persons, capabilities and business needs. Moreover, there has been difficulty faced by companies in managing cross-cultural management. The paper has recognized Hofstede’s framework theory which has prescribed the different dimensions for understanding the influence of cross-cultural differences that is based on negotiations. There are some strategies that have been identified by several companies regarding cross-cultural negotiation which has been stated as an example in the paper. Also, the paper has accomplished the literature review which is based on the point of view of several authors.
References
Bokovets V, Korzh N, and Davidyuk L, ‘Cross-Cultural Aspects Of Behavior In International Business’ [2021] Market Infrastructure
Elia S, Messeni Petruzzelli A, and Piscitello L, ‘The Impact Of Cultural Diversity On Innovation Performance Of MNC Subsidiaries In Strategic Alliances’ (2019) 98 Journal of Business Research
Gerlach P, and Eriksson K, ‘Measuring Cultural Dimensions: External Validity And Internal Consistency Of Hofstede’s VSM 2013 Scales’ (2021) 12 Frontiers in Psychology
Godelier E, ‘The Corporate Nationality: A Question Of Culture And Community?’ (2020) 18 Journal of Modern European History
Grosskopf S, and Barmeyer C, ‘Learning From Multi-Paradigmatic Sensitivity In Cross-Cultural Management? Empirical And Theoretical Considerations’ (2021) 21 International Journal of Cross Cultural Management
Jordan A, ‘Cross-Cultural Differences In Management’ (2012) 3 International Journal of Business and Social Science
Mohanty S, ‘Individualized Employee Engagement Or Collaborative Employee Relations: Insights On Leadership Strategies To Manage Employees In The UK Market’ (2018) 16 Problems and Perspectives in Management
Naghavi N, and Mubarak M, ‘Negotiating With Managers From South Asia: India, Sri Lanka, And Banglades’ [2019] The Palgrave Handbook of Cross-Cultural Business Negotiation
Owusu Ansah M, and Louw L, ‘The Influence Of National Culture On Organizational Culture Of Multinational Companies’ (2019) 5 Cogent Social Sciences
Romani L and others, ‘Cross-Cultural Management Studies: State Of The Field In The Four Research Paradigms*’ (2018) 48 International Studies of Management & Organization
Rungruang S, and Sakolvieng N, ‘The Impact Of Horenso Organizational Culture On Organizational Commitment And Organizational Performance’ (2019) 86 AU ICBE 2019
Sadowski J, and Bendor R, ‘Selling Smartness: Corporate Narratives And The Smart City As A Sociotechnical Imaginary’ (2018) 44 Science, Technology, & Human Values
Sinkovics R, Kurt Y, and Sinkovics N, ‘The Effect Of Matching On Perceived Export Barriers And Performance In An Era Of Globalization Discontents: Empirical Evidence From UK Smes’ (2018) 27 International Business Review
Vrabie A, and Ianole-C?lin R, ‘A Comparative Analysis Of Municipal Public Innovation: Evidence From Romania And United States’ (2020) 6 Journal of Open Innovation: Technology, Market, and Complexity
Wenxin Z, and Wan Y, ‘An Analysis On Sino-UK Cultural Differences In Education From The Perspective Of Hofstede’S Cultural Dimensions Theory (A Case Study Of Are Our Kids Tough Enough?)’ (2022) 4 Journal on Education
Yan T, and Hyman M, ‘Cross-Culture Product Hybridization In Pre-Communist China (1912–1949)’ (2019) 32 Asia Pacific Journal of Marketing and Logistics
IBM, ‘IBM100 – A Culture Of Think’ (Ibm.com, 2021) <https://www.ibm.com/ibm/history/ibm100/us/en/icons/think_culture/> accessed 4 April 2022.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
