Negotiatation

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Jean Monnet Chair in Euromanagement in Business and Technology PhD J. M. Ulijn, TU Eindhoven

International Business Negotiation
ERASMUS Exchange Programme 1996

Dutch-German Business Negotiation

Axel Niemeyer (435358)
Martin Bundschu (435303)
Eindhoven, February 1997

Table of content
Table of content
Figures
Executive Summary
1. Introduction
2. Intercultural Negotiation
2.1 Dimensions of Negotiating
2.2 Negotiation Styles
2.3 Culture and Negotiating
2.4 Cultural Information for Business Situations
3. Dutch-German Cultural Differences
3.1 Dutch-German Economic Relations
3.2 Cultural Values
3.3 Mutual Perception
3.4 Verbal and Non-verbal Communication
3.5 Corporate Behaviour
4. Testing the hypotheses in a Dutch-German Business Negotiation 4.1 Hypotheses
4.2 Verification by Practitioners
4.3 Negotiation Checklist
5. Conclusion
6. References
7. Appendix A: Questionnaire Form

Figures
Figure I: Interview Partners
Figure II: Proved Hypotheses about Dutch-German Business Negotiations Figure 2-1: Stages in Negotiating
Figure 2-2: Activities in Negotiating
Figure 2-3: Mastenbroek´s Negotiating Model
Figure 2-4: Top Negotiation-Related Results from Delphi
Figure 3-1: The 5D-Model
Figure 3-2: Hofstede´s Dimensions
Figure 3-3: Dutch Perception of Germans and their own
Figure 3-4: Cultural Thought Patterns
Figure 4-1: Hypotheses about Dutch-German Business Negotiations Figure 4-2: Interview Partners
Figure 4-3: Proved Hypotheses about Dutch-German Business Negotiations Figure 4-4: Dutch Negotiation Checklist

Executive Summary
Intercultural negotiations add an additional difficulty or dimension to negotiations. In addition to providing a specific basic pattern in the value of the activity indices they provide additional difficulties and problems, that would not be in place if the negotiation took place within a single culture. Therefore the purpose of this paper is to investigate specific problems in Dutch-German business negotiations and develop solution procedures for those problems. As far as behavioural do’s and don’ts in an intercultural setting is concerned the best strategy seems to be to adapt ones own approach to doing business to the other way. Thus any information on the fields of introductions/greetings, customs, protocol, position and status can be put to direct use in future business situations. The amount of international trade between Germany and the Netherlands show that despite cultural differences that may exist, those differences do not lead to major conflict situations in business negotiations. Still, showing knowledge and interest in the way other nations do things, might help for the establishment of a friendly atmosphere for the first contact. Ten Hypotheses have been put in place according to cultural models. The validity of these derived Hypotheses has been tested in meetings with eight Dutch/German business practitioners (s. [ Figure I ]). Expert’s PositionNationalityPresently Living

Purchasing DirectorDutchNetherlands
Purchasing ManagerDutchNetherlands
Account ManagerDutchNetherlands
ConsultantDutchGermany

Sales ManagerGermanGermany
Purchase ManagerGermanGermany
Managing DirectorGermanGermany
Process ConsultantGermanNetherlands
Figure I:Interview Partners

The meetings where fourteen questions have been dedicated to the practitioners (s. Chapter 7, Appendix A) showed that in Dutch-German business negotiations cultural differences are existent, however they are not important conflict factors for business negotiations. Eight hypotheses got supported in the meetings which are shown in [ Figure II ]. Furthermore, the talks showed that German business people are considered as equal or even more straight in their verbal communication than Dutch business people. This result differs significant from Kaplan’s ‘Thought model’ so that the authors have to question it...
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