Importance of culture in cross-border negotiations
There are three types of cultural traits:
This above is explained very well in the Fish can’t see water by Kai Hammerich and Richard D. Lewis.
Based on the above it is important to understand the different cultures involved in negotiations. Sometimes it could be between two companies from different parts of the world, or it could be with a private entity from one part of the world negotiating a concession contract with a public sector entity in another host country where the project is being implemented.?
Cultural dynamics of counter-parties negotiating must be understood and some thoughts on how these interact are given below.
Cultures that are a natural fit are shown below:-
Cultures that need a little bit more awareness to avoid clashes are shown below:-
Cultures that need a deeper understanding, tolerance and adaptation for smoother negotiation are shown below:-
An excellent article from James K. Sebenius published on HBR https://bit.ly/43YoK0F buttresses the above.?
Hope this helps in your next cross-border infrastructure deal negotiation.
References: HBR, Fish can’t see water by Kai Hammerich and Richard D. Lewis.
Retired SIA Captain , Flight instructor (Airlines), Cat A Flight Instructor Indian Air Force , Currently in General Aviation self employed .
1 年What you have penned in this assessment is very profound and is a detailed cross section of cultural diversity . In current globalization , I do, in addition, feel that effective communication is the best key to breaking cultural borders and Ofcourse as in any deal , a mutual motivation to clinch it . My regards to you ??
CEO at Marlie Consulting Services Pvt Ltd
1 年What a sensitive dimension to bring into an otherwise dry business world! Understanding of cultures in negotiation brings forth the simple fact that we are all human and are quintessentially a sum of our cultural upbringing. Although globalisation is the anthem of the day, it can and should never underestimate the finer nuances of cultural diversity. Respect and acceptance of this is elementary to any negotiation.
Host of ‘Buzz by the Bay’ talk show on Free Press Journal, YouTube channel/ Singer - Songwriter/ Govt Certified Yoga Instructor
1 年Very well explained
Global Trusted Advisor | Cross Cultural Leader | Financial Guardian | Growth Strategist | Large Bids Winner | Change Catalyst | Servant Leader | Advisory Board Chairperson | Corporate Governance | Mentor
1 年Well said Ravi. My countryman assume most of the world plays baseball ?? when in fact they play cricket ?? .
Senior Advisor ESG - Sustainability - Climate- Nature- Governance -Partnerships- ED- Green Transition@FIPRA EU affairs - CSRD- CSDDD - former partner @KPMG EU office- Independant NED -
1 年very pertinent for any cross border negotiations and build up #trust #respect into #negotiation