The paper focuses on the role of culture in negotiations across cultures in business. Starting point of the paper will be the theoretical analysis of the selected cultures of Portugal and Iceland with the help of relevant theories/approaches regarding culture’s impact on negotiations. The impact of culture on negotiations in business will then be analyzed in a practical part with the help of a specific critical incident with focus on the Portuguese and Icelandic culture.
The paper focuses on selected cultural aspects. The focus was chosen on aspects that show the most interesting differences between the cultures of Iceland and Portugal and that are most interesting for the critical incident. The paper focuses on communication aspects, that are important during negotiations, as well as the monochronic and polychronic time orientation and Gestelands’ pattern of relationship-focus and deal-focus.
Cross-cultural negotiations are getting more and more important in the business context. Doing business abroad, using sources and hiring workforce from other cultures make cross-cultural negotiations between professionals necessary, especially in times of globalization. In international business, great benefits can be gained from cross-cultural negotiations, nevertheless negotiations across cultures are more complex than negotiations between persons from the same country or culture. Negotiations between people from different cultures add an entire dimension to any negotiation introducing inter alia language barriers, differences in body language and alternative ways of expressing pleasure or displeasure with the elements of the deal that is negotiated.
A professional negotiator has to understand the cultures of the participants, as well as culturally specific aspects. People that are involved in international negotiations have to acquire a skill set that is useful in the prevention of undesired perceptions and that promotes successful negotiation outcomes. According to the authors Shi and Wright the business executive’s work has an increasingly international orientation and international business negotiation becomes an important competency in a global business environment.
Table of Contents
1 INTRODUCTION
2 COMPARISON ICELAND AND PORTUGAL
3 ANALYSIS OF ICELAND AND PORTUGAL
3.1 Time Orientation: Monochronic vs. Polychronic
3.2 Communication during negotiations: Hall’s framework of High-context and low-context communication
3.3 Gesteland’s’ Patterns of Cross-Cultural Business Behavior: Deal-focus vs. Relationship-focus
4 PRACTICAL APPROACH – CULTURES IN NEGOTIATIONS
4.1 Critical Incident: “Portuguese-Icelandic Business opportunities”
4.2 Reflection of the critical incident
4.3 Recommendations for the next meeting
5 RECOMMENDED READING
6 LIST OF REFERENCES
7 ANNEXURE: CRITICAL INCIDENT –„PORTUGUESE-ICELANDIC BUSINESS OPPORTUNITIES“
Objectives and Core Topics
The primary objective of this paper is to examine the impact of cultural differences on international business negotiations, specifically focusing on the interaction between Icelandic and Portuguese business practices. By analyzing theoretical frameworks and a practical case study, the paper aims to provide insights into how cultural nuances influence negotiation outcomes and to offer actionable recommendations for improving cross-cultural business relationships.
- Cultural differences in time perception (Monochronic vs. Polychronic)
- High-context vs. Low-context communication styles
- Deal-focus vs. Relationship-focus in business behavior
- Analysis of a critical incident involving Icelandic and Portuguese companies
- Strategies for successful cross-cultural negotiation and relationship building
Excerpt from the Book
First Contact
While the Portuguese were very open and welcoming to the Icelandic strangers and tried to discuss various topics, the Icelandic delegation seemed to be shy in the beginning. This is due to the fact that they did not want to appear as intrusive. It is common for Icelanders to loosen up after a while, but usually around a more relaxed setting, not in a business meeting. Hence, the Portuguese delegation experienced the Icelanders as too passive and closed.
This may be also due to the fact that Icelanders are more belonging to the low-context cultures, like it was explained earlier in the paper. On the other side, for the Icelanders the openness of the Portuguese was too overwhelming and not relevant for the business meeting. This goes again along with the context culture of the countries likes stated above, as Portugal belongs in contrary to the high-context cultures. On top, the greeting of the Portuguese was very typical to the business relationship-focused culture of the country, as mentioned above, as they need trust in their business partner, before making a deal.
Chapter Summaries
1 INTRODUCTION: Discusses the growing necessity of cross-cultural competence in global business and outlines the paper's focus on the cultural dynamics between Iceland and Portugal.
2 COMPARISON ICELAND AND PORTUGAL: Provides a foundational overview of the geographical, demographic, and economic characteristics of Iceland and Portugal.
3 ANALYSIS OF ICELAND AND PORTUGAL: Examines specific cultural theories—Time Orientation, Communication Context, and Business Focus—to contrast the behaviors of Icelandic and Portuguese professionals.
4 PRACTICAL APPROACH – CULTURES IN NEGOTIATIONS: Presents a critical incident scenario involving an Icelandic and a Portuguese company and reflects on the resulting intercultural friction.
5 RECOMMENDED READING: Offers a curated list of academic and practical resources for further study on cross-cultural negotiation strategies.
6 LIST OF REFERENCES: Provides a comprehensive list of sources used throughout the term paper.
7 ANNEXURE: CRITICAL INCIDENT –„PORTUGUESE-ICELANDIC BUSINESS OPPORTUNITIES“: Details the specific case study of a failed or complicated initial meeting between the two companies.
Keywords
Cross-cultural negotiations, Iceland, Portugal, Business culture, Communication, Time orientation, Monochronic, Polychronic, High-context, Low-context, Relationship-focus, Deal-focus, Critical incident, Negotiation strategy, International business.
Frequently Asked Questions
What is the core subject of this paper?
The paper examines the role of culture in business negotiations, specifically exploring the challenges that arise when professionals from Iceland and Portugal collaborate.
What are the primary themes discussed?
The main themes include cultural perceptions of time, differences in communication styles (high vs. low context), and the contrast between deal-focused and relationship-focused business approaches.
What is the ultimate goal of the research?
The goal is to analyze how cultural disparities affect international negotiations and to provide practical advice to help professionals mitigate misunderstandings and improve business outcomes.
Which scientific theories are applied in this work?
The author utilizes Edward Hall's framework of high-context and low-context communication, the concept of monochronic vs. polychronic time orientation, and Richard Gesteland’s patterns of cross-cultural business behavior.
What does the main body of the text cover?
The main body provides an in-depth cultural analysis of both countries, followed by a detailed case study (a critical incident) that illustrates real-world communication breakdowns during a joint business meeting.
How would you describe the characteristic keywords of this work?
The keywords center on international management, intercultural competence, and specific communication frameworks used to bridge the gap between distinct national business cultures.
Why did the negotiation in the critical incident become complicated?
The negotiation struggled because both sides held different expectations regarding punctuality, directness in criticism, the role of small talk, and the purpose of written minutes.
What is the main recommendation for the parties in the second meeting?
It is recommended that they meet in a more casual setting first to build rapport, discuss their respective communication styles openly, and agree on a middle-ground approach for agendas and documentation.
- Arbeit zitieren
- Julian Rudolf (Autor:in), 2019, Culture in Negotiations across Cultures in Business. An Encounter and Business Negotiations between Iceland and Portugal, München, GRIN Verlag, https://www.grin.com/document/947584
