Negotiation and Culture: Case Study

Culture and Negotiations
Why do Japanese negotiators behave in the manner they do? How does culture affect negotiating behavior and outcomes?

MASTER THESIS Author’s name: Patrycja J. Krause Student’s number: 258891 Academic advisor: Søren O. Hilligsøe Faculty of English Aarhus School of Business May 2006

I would like to thank my Mom, Barbara, for her understanding, encouragement and eternal support, as well as my advisor, Søren O. Hilligsøe, for his academic help, advice and faith in me keeping my deadline!

Patrycja J. Krause Aarhus, May 2006

In loving memory of my Dad, Władysław, for showing me the world – this one is for you.

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1. 2. 3. 4. 5. 5.1 5.2 5.3 5.4 5.5 6. 7. 8.

INTRODUCTION METHOD WHY JAPAN? DEFINITION OF CULTURE AND VALUES HOFSTEDE’S VALUE DIMENSIONS POWER DISTANCE UNCERTAINTY AVOIDANCE COLLECTIVISM VERSUS INDIVIDUALISM FEMININITY VERSUS MASCULINITY LONG-TERM VERSUS SHORT-TERM ORIENTATION CRITICAL PERSPECTIVES ON HOFSTEDE EDWARD HALL CULTURAL DIMENSIONS

4 6 7 9 11 12 13 13 14 15 15 16 19 20 21 23 25 26 28 30 40 43 47 59 61 64 65

8.1 CONFUCIANISM 8.2 IE 8.3 THE WA-CONCEPT 8.4 ISOLATION 8.5 UNIQUENESS 8.6 WESTERN INFLUENCE 9. 9.1 10. 11. 12. 13. JAPANESE NEGOTIATOR THE NANIWABUSHI STRATEGY BRETT & USUNIER CASE STUDIES CONCLUSION SUMMARY

REFERENCES APPENDIX

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1. Introduction
This paper wants to provide a culture-based explanation, examination and analysis as to why Japanese negotiators behave in the manner they do in negotiation, as well as how culture affects negotiations and their outcome. The paper is, due to the focus on cultural differences, solely dealing with international negotiations. This paper is focusing on the cultural aspect of the negotiation, which is only one piece of a larger puzzle, but it is a crucial and decisive piece. It is now widely accepted that culture indeed has an affect on negotiation and its outcome, which reflects a given culture and the underlying values and beliefs that are central

References: Bacca, Susan; Christensen, Steen Fryba; Kvistgaard, Peter; Strunck, Jeanne (1999). Den skinbarlige Hofstede – refleksioner over kritisk brug af Hofstede. Institut for Sprog og Internationale Kulturstudier, Aalborg Universitet Bando, Mariko (1980). Kvinder i Japan, Før og nu. Den Japanske Ambassade. Danmark Blaker, Giarra, Vogel (2002). Case Studies in Japanese Negotiating Behavior, United States Institute of Peace Brett, Jeanne M. (2000). Culture and Negotiation from International Journal of Psychology Cohen, Raymond (1997, revised edition). Negotiating Across Cultures, United States Institute of Peace Press, Washington D.C. De Mooij, Marieke (2004). Consumer Behavior and Culture, USA, SAGE Publications Gesteland, Richard, E. (2005, 4th edition). Cross-Cultural Business Behavior, CBS School Press Gudykunst, William B. & Kim, Young Yun (2003). Communicating With Strangers, USA, McGraw-Hill Hall, E.T. (1977). Beyond Culture. Anchor Books. New York Hall, E.T. (1973). The Silent Language. Anchor books. New York Harumi, Befu (1971). An Anthropological Introduction, USA, Chandler Publishing Company Hendry, Joy (ed.). (1998, 2nd edition). Interpreting Japanese Society, UK, Routledge Hofstede, Geert: Culture’s Consequences. (2001, 2nd edition). Sage Publication Hofstede, Geert: Cultures and Organizations – Software of the mind. Mc GRAW-HILL Book Company Europe, 1991 Kennedy, Gavin (1985). Negotiating Anywhere! Doing Business Abroad. Business Books Kodansha International (1994). Japan – Profile of a Nation. Kodansha International Ltd. Lasserre, Philippe & Schütte, Hellmut (1995). Strategies for Asia Pacific, UK, Mackays of Chatham PLC March, Robert M. (1996). The Japanese Negotiator, Kodansha International McGreal, I. (1995). Great Thinkers of the Eastern World. New York: Harper Collins Refsing, Kirsten; Wisberg, Mette N.; Bjerre Karen E. (1990). Gode Hustruer og Vise Mødre, Rhodos Reischauer, Edwin O. & Jansen, Marius B. (1995). The Japanese Today, USA, Harvard University Press Rowland, Diana (1993). Japanese Business Etiquette – A practical guide to success with the Japanese. Warner Books 64 Samovar, Larry A., & Porter, Richard E (2004). Communication Between Cultures, Canada, Thomson & Wadsworth Sugimoto, Yoshio (1997). An Introduction to Japanese Society. Cambridge University Press Usunier, Jean-Claude (2003, 2nd edition). International Business Negotiations, Elsevier Ltd Usunier, Jean-Claude (2003) Cultural Aspects of International Business Negotiations. Oxford: Elsevier Science Wakaba (1996, 3rd ed.). The Japan of Today. The International Society for Educational Information inc. Wierzbicka, Anna (1992). Semantics, culture, and cognition: Universal human concepts in culture-specific configurations. Oxford: Oxford University Press. Appendix (Please find enclosed appendix in a separate folder) Appendix 4: Agri-Food Country Profile: Japan (2205): http://atn-riae.agr.ca/asia/e2982.htm Appendix 1-3: Statistical Handbook of Japan, 2005: http://www.stat.go.jp/English/data/handbook/index.htm (Chapters on Household (appendix 1), Economy (appendix 2) and Agriculture (appendix 3)) Appendix 5: Case 1: Negotiations on Orange Imports, 1977-88 in; Case Studies in Japanese Negotiating Behavior, Blaker, M., Giarra P., Vogel E., 2002. United States Institute of Peace (pages 17, 2139) Appendix 6: Case 2: Negotiations on Rice Imports, 1986-93; in; Case Studies in Japanese Negotiating Behavior, Blaker, M., Giarra P., Vogel E., 2002. United States Institute of Peace (pages 41-61). 65