Nothing Succeeds Like Success

Xiaoshu Zhu and Dianjun Gao

International Studies of Management & Organization, 2013, vol. 43, issue 4, 26-38

Abstract: This study aims to identify Chinese negotiators' views on the causes of failure in intercultural negotiations. Eighty-six Chinese negotiators were asked to rank the most frequently cited causes of failure, and 36 of them were further interviewed to provide examples about one case of successful and one case of failed business negotiations with their international counterparts and to analyze the causes of failure. The questionnaire's precursors to business negotiation failure were identified as not having enough information about the other party, not taking the initiative in negotiations, revealing one's own bottom line too early, extraneous factors, no BATNA (best alternative to no agreement) or emergency measures, and being impatient. Interestingly, the most frequent precursors to failure revealed in the interviews were Chinese negotiators' lack of communication skills, especially inadequate proficiency in English, lack of cultural awareness, the use of inappropriate business behavior and protocols, and failure to compromise on price, delivery deadlines, or payment terms. The interview results added details to the above precursors. The study concludes that negotiators should focus on more than just the negotiation process, as other elements contribute to the success of business negotiations.

Date: 2013
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DOI: 10.2753/IMO0020-8825430402

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