International business activities required people to negotiate across cultural and national boundaries. There are many cultural challenges, to be considered while conduct business negotiation in cross cultural situation. Cultural dimension theory and negotiation process help to understand these challenges and find the remedies. For instance, Hofstede four dimensions and high and low culture context dimensions are two important theories to explain the behavior of negotiator in international business from cultural perspective. From these theories researches were able to have better understanding of conflicts and challenges arise from across business negation and finding the remedies. However, no theory is perfect. Other studies indicated that Hofstede method did not fully applied in specific cultural situations. This was attributed to the influences of other factors like economy, human behavior. This has made the issue more complicated and adds more hidden challenges in the international business. Hence, there are no unique solutions to tackle these diverse challenges. However, understanding the cultural behavior differences will lead to increase the likelihood of successful business negotiation in cross culture situation.
Introduction
As business become more international, greater numbers of people are conducting business negations across culture boundaries. Culture-clash will continue to affect all aspects of international business as consequences of this phenomenon. Different cultures have different challenges and there is no unique or magic solution to tackle all of them. However, understanding and building theories will help to increase the likelihood of success in a cross cultural negation situation.
Lieh (2003) defined culture as distinctive characteristic of social group that share values and attitude by their individual making them unique from other social groups. The culture covers all aspect of life like religion, economics,