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A Comparison on Intercultural Business Negotiations of Asia’s Four Little Dragons

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  • Yu-Te Tu

    (Department of Business Administration Chungyu Institute of Technology, Taiwan)

Abstract

The Four Little Dragons have experienced growth rates between 5 and 10 percent over the last decade and are the recipients of the largest capital transfer in the region. Despite the enthusiasm for increased economic exchange, however, people are finding that cultural differences hinder their ability to efficiently conduct business. In this research, Casse and Deols’ model of negotiation styles are dependent variables, and cultural factors are utilized as independent variables to examine how cultural differences affect negotiation styles. Data are collected from public companies by means of an online survey, and the snowball sampling method is applied. Structural equation modeling is selected to measurehypothesized models and research hypotheses. The findings show that (1) an individualist attitude directly affects the style of negotiation; (2) nationality is a moderated variant of individualist attitude and style of negotiation; and (3) different styles of negotiation are preferred by negotiators of the Four Little Dragons. The researcher hopes this study can improve the understanding of the negotiation styles used by the Four Little Dragons and help business people develop better strategies to reap increased benefits and to maintain their competitive advantage. Additionally, a comparison can be made of the differences and similarities among the styles of negotiation used in a number of different countries, such as BRIC, or within specific regions, such as Germany. Furthermore, future studies can employ a qualitative method and other factors, such as gender or ethics to examine and add value to the current findings.

Suggested Citation

  • Yu-Te Tu, 2013. "A Comparison on Intercultural Business Negotiations of Asia’s Four Little Dragons," International Journal of Business and Social Research, LAR Center Press, vol. 3(4), pages 65-79, April.
    • Handle: RePEc:lrc:larijb:v:3:y:2013:i:4:p:65-79
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    References listed on IDEAS

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    1. Schein, Edgar H., 1983. "The role of the founder in the creation of organizational culture," Working papers 1407-83., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    2. Catherine H Tinsley & Madan M Pillutla, 1998. "Negotiating in the United States and Hong Kong," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(4), pages 711-727, December.
    3. Yu-Te Tu, 2012. "Cultural Characteristics and Negotiation Styles," Journal of Economics and Behavioral Studies, AMH International, vol. 4(5), pages 297-306.
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