Cultural differences encountered by firms when negotiating internationally

Abstract

In this age of the global economy, negotiating across cultures is an inevitable part of doing business for firms desiring to compete internationally. What problems could cultural differences cause? Can firms from some countries or cultures do better than firms from other countries? What problems might firms from one culture encounter compared to firms from other cultures? To study these questions, cross‐cultural negotiating behaviour was examined using Hofstede’s criteria, to see if some firms may have a cultural competitive advantage. Assumptions about the effects of national cultures were proposed and tested, and differences between cultures were found. Additional research was also suggested.