Cross Cultural Sales Negotiation
International Marketing Review 15,1 10
Received April 1996 Revised May 1997 Accepted September 1997
Cross-cultural sales negotiations
A literature review and research propositions
Antonis C. Simintiras
The Open University Business School, Milton Keynes, UK, and
Andrew H. Thomas
European Business Management School, University of Wales, Swansea, UK
Introduction International business comprises a large and increasing portion of the world’s total trade (Johnson et al., 1994; Czinkota et al., 1995). The growth of international business has gained momentum faster than previously recorded, outstripping domestic business (Daniels and Radebaugh, 1995). The impact of such growth on many companies is that they are now “rushing to become insiders in international markets they formerly paid little attention to, or ignored completely” (McDaniel, 1990, p. 1). International markets, it is believed, offer companies opportunities to market their products and services on a worldwide scale and reap the benefits of the particularly high stakes involved (Mintu and Calantone, 1991). Companies involved in international business, deal with sales transactions or negotiations which span national and cultural boundaries. That means, sales negotiators interact with individuals from unfamiliar cultures that exhibit different negotiation styles, behaviours and expectations about the normal process of negotiation (Graham and Sano, 1984). This presents several potential culture-related obstacles that confront the international negotiator (Deutsch, 1984; Frank, 1992; Graham and Sano, 1984; Hall and Hall, 1987; Tung, 1984; Zimmerman, 1985) and a failure to anticipate, understand and effectively remove these obstacles can lead to a failure in cross-cultural negotiations. Competence, therefore, in international negotiations is one of the most important and indispensable skills in all kinds of international business (Fayerweather and Kapoor, 1972, 1976; Root, 1987; Wells, 1977). Despite the
Received April 1996 Revised May 1997 Accepted September 1997
Cross-cultural sales negotiations
A literature review and research propositions
Antonis C. Simintiras
The Open University Business School, Milton Keynes, UK, and
Andrew H. Thomas
European Business Management School, University of Wales, Swansea, UK
Introduction International business comprises a large and increasing portion of the world’s total trade (Johnson et al., 1994; Czinkota et al., 1995). The growth of international business has gained momentum faster than previously recorded, outstripping domestic business (Daniels and Radebaugh, 1995). The impact of such growth on many companies is that they are now “rushing to become insiders in international markets they formerly paid little attention to, or ignored completely” (McDaniel, 1990, p. 1). International markets, it is believed, offer companies opportunities to market their products and services on a worldwide scale and reap the benefits of the particularly high stakes involved (Mintu and Calantone, 1991). Companies involved in international business, deal with sales transactions or negotiations which span national and cultural boundaries. That means, sales negotiators interact with individuals from unfamiliar cultures that exhibit different negotiation styles, behaviours and expectations about the normal process of negotiation (Graham and Sano, 1984). This presents several potential culture-related obstacles that confront the international negotiator (Deutsch, 1984; Frank, 1992; Graham and Sano, 1984; Hall and Hall, 1987; Tung, 1984; Zimmerman, 1985) and a failure to anticipate, understand and effectively remove these obstacles can lead to a failure in cross-cultural negotiations. Competence, therefore, in international negotiations is one of the most important and indispensable skills in all kinds of international business (Fayerweather and Kapoor, 1972, 1976; Root, 1987; Wells, 1977). Despite the