Negotiating Globally: How to Negotiate Deals, Resolve Disputes, and Make Decisions Across Cultural Boundaries (Jossey-Bass Business & Management) PDF
Preview Negotiating Globally: How to Negotiate Deals, Resolve Disputes, and Make Decisions Across Cultural Boundaries (Jossey-Bass Business & Management)
Negotiating Globally How to Negotiate Deals, Resolve Disputes, and Make Decisions Across Cultural Boundaries Second Edition Jeanne M. Brett John Wiley & Sons, Inc. Brett.ffirs 7/2/07 8:28 AM Page iii Brett.ffirs 7/2/07 8:28 AM Page ii Negotiating Globally Brett.ffirs 7/2/07 8:28 AM Page i Brett.ffirs 7/2/07 8:28 AM Page ii Negotiating Globally How to Negotiate Deals, Resolve Disputes, and Make Decisions Across Cultural Boundaries Second Edition Jeanne M. Brett John Wiley & Sons, Inc. Brett.ffirs 7/2/07 8:28 AM Page iii Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved. Published by Jossey-Bass A Wiley Imprint 989 Market Street, San Francisco, CA 94103-1741-www.josseybass.com No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the publisher, or authorization through payment of the appro- priate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600, or on the Web at www.copyright.com. Requests to the publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, or online at www.wiley.com/go/permissions. 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It does not allow for systematic or large-scale reproduction, distribution (more than 100 copies per page, per year), transmission, electronic reproduction or inclusion in any publications offered for sale or used for commercial purposes-none of which may be done without prior written permission of the Publisher. Jossey-Bass also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. Library of Congress Cataloging-in-Publication Data Brett, Jeanne M. Negotiating globally: how to negotiate deals, resolve disputes, and make decisions across cultural boundaries/ Jeanne M. Brett.—2nd ed. p. cm.—(The Jossey-Bass business & management series) “A Wiley Imprint.” Includes bibliographical references and index. ISBN 978-0-7879-8836-4 (cloth/cd) 1. Negotiation in business—Cross-cultural studies. 2. Negotiation—Cross-cultural studies. 3. Decision making — Cross-cultural studies. 4. Conflict management— Cross-cultural studies. I. Title. HD58.6.B74 2007 658.4'052—dc22 2007019065 Printed in the United States of America second edition HB Printing 10 9 8 7 6 5 4 3 2 1 Brett.ffirs 7/2/07 8:28 AM Page iv The Jossey-Bass Business & Management Series Brett.ffirs 7/2/07 8:28 AM Page v Brett.ffirs 7/2/07 8:28 AM Page vi Contents CD-ROM Contents ix Preface xi Acknowledgments xix The Author xxv 1. Negotiation Basics 1 2. Culture and Negotiation 25 3. Culture and Integrative Deals 53 4. Executing Negotiation Strategy 79 5. Resolving Disputes 115 6. Third Parties and Dispute Resolution 155 7. Negotiating Decisions and Managing Conflict in Multicultural Teams 175 8. Social Dilemmas 219 9. Government At and Around the Table 245 10. Will the World Adjust, or Must You? 279 Notes 289 Glossary 325 Index 335 How to Use the CD-ROM 349 vii Brett.ftoc 7/2/07 8:29 AM Page vii Brett.ftoc 7/2/07 8:29 AM Page viii CD-ROM Contents Chapter One Negotiation Planning Document Exercise 1.1. Personal Choices in Decision Making Chapter Two Case 2.1. System Modification for Japan Chapter Three Case 3.1. A Scandinavian Scare Chapter Four Guide to Listening to Your Negotiation Audio Recording Chapter Five Case 5.1. Nichia Corporation Versus Shuji Nakamura: The Blue LED Dispute Chapter Six Being Effective in Mediation When You Are the Disputant The Mediation Process Additional CPR Model Clauses ix Brett.ftoc 7/2/07 8:29 AM Page ix Chapter Seven Exercise 7.1. Cultural Metacognition Exercise 7.2. Identifying Effective Strategies for Multicultural Teams Chapter Eight Case 8.1. OPEC Negotiations Chapter Nine Case 9.1. Nokia and Motorola Versus Telsim Case 9.2. Newbridge and Chinese Negotiations Over Shenzhen Development Bank Case 9.3. The Checkered Negotiation History of the Dabhol Power Project x CD-ROM CONTENTS Brett.ftoc 7/2/07 8:29 AM Page x Preface If you must negotiate deals, resolve disputes, or make decisions in multicultural environments, this book is for you. If you have had formal training in negotiations but no training in culture, the book will extend your negotiating skills and knowledge across cultural boundaries. Be prepared to discover that old, familiar negotiation concepts, such as power and interests, take on somewhat different meaning in different cultures. If you have had no formal training in negotiations, the book will introduce you to all the fundamental concepts in negotiation and explain how the concepts apply in dif- ferent cultural settings. Although the book emphasizes negotiations in a multicultural business environment, its advice is relevant not just to managers and management students who expect to be negotiating across cul- tural boundaries but also to lawyers and law students, and to gov- ernment officials and students of public policy who are concerned with economic development in a global environment. Global ne- gotiations occur in multiple legal, political, social, and economic environments. International agencies and national and local gov- ernment officials are frequently at the table in negotiations that cross cultural boundaries. Negotiating Globally focuses on national culture, because nation- state boundaries are both geographical and ideological. The ideol- ogy or theory underlying a nation’s social, economic, legal, and political institutions affects the way people interact. When nego- tiators are from the same culture, ideology is the backdrop against which deals and decisions are made and disputes are resolved. xi Brett.fpref 7/2/07 8:28 AM Page xi xii PREFACE When negotiators are from different cultures, each may rely on dif- ferent assumptions about social interaction, economic interests, legal requirements, and political realities. In today’s global environment, negotiators who understand cul- tural differences and negotiation fundamentals have a decided ad- vantage at the bargaining table. This book explains how culture affects negotiators’ assumptions about when and how to negotiate, their interests and priorities, and their strategies: the way they go about negotiating. It explains how confrontation, motivation, in- fluence, and information strategies shift due to culture. It provides strategic advice for negotiators whose deals, disputes, and decisions cross cultural boundaries. Researching Multicultural Factors Until recently, most of the knowledge about how to negotiate deals, resolve disputes, and make decisions in teams came from U.S. re- searchers studying U.S. negotiators negotiating with other U.S. ne- gotiators. The evidence is overwhelming that U.S. negotiators leave money on the table when they negotiate deals, escalate dis- putes to the point where costs outweigh gains, make suboptimal decisions in teams, and allow their emotions to interfere with out- comes.1 Their outcomes also often fall short of the outcomes they could have obtained if they had integrated their interests fully with those of the people across the table. Armed with knowledge about this gap and what can be done about it, my colleagues at the Kellogg School of Management at Northwestern University and I have worked with thousands of stu- dents, managers, and executives who wanted to improve their ne- gotiation skills. In the early 1990s our student population and their interests started to shift. Managers from all over the world began to come to our executive programs. We were invited to teach negoti- ation in Europe, Latin America, and Asia. Kellogg’s students be- came decidedly international. We could not avoid dealing with the Brett.fpref 7/2/07 8:28 AM Page xii
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