INSTITUTIONAL DYNAMICS AND THE NEGOTIATION PROCESS: COMPARING INDIA AND CHINA
Rajesh Kumar
The Aarhus School of Business, Denmark
Verner Worm
Copenhagen Business School, Denmark This paper develops the argument for analyzing negotiations from an institutional perspective. A major theme of the argument being advanced in this paper is that the institutional perspective provides a more comprehensive understanding of the negotiation process in its entirety. The negotiation process can be broken down into three distinct components, namely (a) the pre-negotiation phase; (b) the negotiating phase; and (c) the post negotiation evaluation. Each of these phases is critically influenced by a specific component or components of the institutional environment. Scott's distinction between the regulative, the normative, and the cognitive dimension of the institutional environment is drawn upon to illustrate the usefulness of this perspective. The framework is applied to assess the similarities and differences between Indian and Chinese institutional environments and their implications for negotiating processes in the countries discussed. Choosing India and China to illustrate the utility of this framework is justified by the fact that India and China are both in the process of transforming their economies, and although confronted with similar challenges, they have dealt with them in very different ways. This comparison is thus useful, not only for illustrating the value of the institutional perspective, but also for understanding the dynamics of the negotiation process in these countries. Keywords: Negotiation, Institutional designs. Cross-cultural Note: We would like to express our deep appreciation to the editor Judi McLean Parks for her insightful suggestions and to three anonymous reviewers for helpful comments on an earlier version of the manuscript. Correspondence concerning to this article