Intercultural negotiation appears in the process of internationalisation as a reality to be faced, and with it, cultural differences, which if not properly managed, can become invisible barriers, which can destroy commercial agreements.
Angela Merkel and Vladimir Putin, meeting in Sochi in 2007
In this picture, we can see the tense encounter between Angela Merkel and Vladimir Putin at an official meeting between the two in 2007. The Russian president considered it acceptable to let his dog pass, despite the fact that the German chancellor (who kept her composure throughout) had previously mentioned her fear of dogs. This gesture was seen as a form of cultural intimacy, with non-verbal elements that can alter the tone and trust in the negotiation. The faces of both are very illustrative of their status and comfort in the meeting.
High- and low-context cultures
The culture of each person is not only limited to the country of birth, but is also influenced by the region in which they grow up, the activities they carry out, the values of their family and even the events they experience in their lives. However, to simplify it and make it less complex, we will reduce it to the factor of nationality, which, after all, greatly influences the identity and cultural traits of the people who share it.
It is difficult to classify cultures among themselves, but there is a generic classification that allows us to distinguish some of the main features: high-context cultures are those where a large part of the message is transmitted implicitly, supporting the message in silences, tone, as well as the environment and relationship between the people involved (Japan or China); on the other hand, low-context cultures prioritise clarity and verbal precision, being their message more explicit (Germany or the United States).
Common mistakes in intercultural negotiation
Below is a list of the most common intercultural negotiation mistakes that can scupper a business deal:
- Assuming that ‘normal’ is universal
Assuming that the rules of courtesy, ways of communicating or negotiating that you consider ‘normal’ are applicable in any country is a common mistake. If two people think that they are both acting in a generally acceptable manner, this can lead to rejection due to the behaviour of the other person and a lack of consideration for what is ‘normal’ for the other person.
- Ignoring hierarchy and protocol
Countries such as India and China have a very defined hierarchical system that determines the order of interactions, people’s positions and how decisions are made. Not respecting hierarchy can be considered disrespectful and may limit opportunities from the outset. On the other hand, cultures such as those in some Nordic countries reinforce horizontality and communication from a position of equality between interlocutors.
- Not understanding the perception of time
Time is cultural, and the value placed on it varies greatly depending on the country’s perspective. While time management is very rigorous in countries such as the United Kingdom, the well-known ‘African time’ refers to the flexibility shown by cultures in Africa in relation to time. The time factor appears in punctuality or the length of meetings, and showing adaptability without losing professionalism is necessary to maintain stable relationships.
- Underestimating the power of non-verbal communication
Gestures, eye contact, interpersonal distance… These are factors that can have completely different meanings depending on the country. A gesture that may be friendly in your culture may be violent in another, and a distance that you may consider appropriate for a formal conversation may be uncomfortable for someone else.
- Imposing your business model
It is common to take our way of working with us wherever we go, while team management, working hours and corporate bureaucracy vary significantly depending on the culture. Imposing your working model can be interpreted as a lack of interest in understanding the other party, while the ability to adapt processes demonstrates respect and increases the likelihood of success.
How can these mistakes be avoided in intercultural negotiation?
Preparation, empathy and intercultural training will be key factors. Identifying the dominant culture, i.e. the one that sets the pace, the language used and the rules imposed, can define the tone and model of interaction. It is also important to consider which interlocutor, based on their personality and culture, may be more aware of this difference and may find it easier to adapt to the other.
Some tips to avoid the mistakes mentioned above are:
– Research the culture of the other party prior to the interaction, their customs, body language, etiquette, social norms….
– Be flexible with the timing and structure of meetings, being prepared to conduct meetings that do not follow the pace to which you are accustomed.
– Rely on interpreters or intercultural mediators, especially in sensitive or high-value negotiations.
– Observe and ask questions, and if you are unsure of a custom or behaviour, it is better to ask respectfully than to take it for granted and be wrong.
Successful exporting is about building strong and reliable relationships with international partners. To achieve this, you need to understand how the other thinks, how they negotiate and how they decide. In the current context, cultural sensitivity is a competitive advantage.
Exportest shows the cultural distance between two countries based on Hofstede‘s theory, which seeks to show the affinity or similarity between two countries and therefore includes commercial relations. You can sign up for Exportest via this link, and if you have any questions, you can fill in the form below this article or call +34 965 651 725. Visit our website to find out about the rest of our services.
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Writting of the article: Álvaro Ramírez, Export Manager at Oftex