The Study of Cultural Differences on International ...

The Study of Cultural Differences on International Business Negotiations

between China and Western Countries

ZHENGZHU YANG

5917195708

AN INDEPENDENT STUDY SUBMITTED IN PARTIAL FULFILLMENT

OF THE REQUIREMENTS FOR

THE MASTER¡¯S DEGREE OF BUSINESS ADMINISTRATION

GRADUATE SCHOOL OF BUSINESS

SIAM UNIVERSITY

2020

CONTENT

ABSTRACT ............................................................................................................................... I

1 INTRODUCTION .................................................................................................................. 1

1.1 Research Background ........................................................................................... 1

1.2 The Significance of Research ............................................................................... 3

1.3 The Purpose of Research ...................................................................................... 3

1.4 The Innovation of Research ................................................................................. 4

1.5 Research Content and Route ................................................................................ 5

2 LITERATURE ........................................................................................................................ 6

2.1 Overview of business negotiation ........................................................................ 6

2.1.1 Definition of International business negotiation ....................................................... 6

2.1.2 Review on the Development of Western Negotiation ....................................... 7

2.1.3 Review on the development of China's negotiation theory ....................................... 8

2.2 Overview of cultural differences .......................................................................... 9

2.2.1 Definition of culture .................................................................................................. 9

2.2.2 Characteristics of Culture........................................................................................ 10

2.2.3 Components of Culture ........................................................................................... 11

2.2.4 Definition of cultural difference.............................................................................. 13

2.3 Cultural dimension ............................................................................................. 15

2.3.1 Hofsted¡¯s cultural dimensions ................................................................................. 15

2.3.2 Cultural differences and international business negotiation ................................... 17

2.4 Culture difference between China and Western ................................................. 19

2.4.1 Differences in values ............................................................................................... 20

2.4.2 Differences in thinking style ................................................................................... 21

2.4.3 Language communication and non-verbal communication .................................... 23

2.4.4 Regional Customs Differences ................................................................................ 26

2.5 Cultural difference affecting international business negotiations ...................... 27

2.5.1 Analysis of the reasons ........................................................................................... 27

2.5.2 Specific impact ........................................................................................................ 28

2.5.3 Influence of Cultural Differences on negotiations .................................................. 33

3 RESEARCH METHOD ........................................................................................................ 42

3.1 Research Context................................................................................................ 42

3.2 Measure .............................................................................................................. 43

3.3 Sample Selection ................................................................................................ 44

3.4 Research Hypothesis .......................................................................................... 44

4 DATA ANALYSIS AND CASE STUDIES......................................................................... 46

4.1 Operational Test ................................................................................................. 46

4.2 Reliability Test ................................................................................................... 46

4.3 Analysis of Negotiation Results ......................................................................... 47

4.3.1 Negotiation Quality ................................................................................................. 47

4.3.2 Individual Benefits .................................................................................................. 48

4.3.3 Group Joint Income ................................................................................................. 48

4.4 Negotiation Behavior Analysis .......................................................................... 49

4.4.1 Correlation Analysis ............................................................................................... 49

4.4.2 Variance Analysis ................................................................................................... 50

4.4.3 Regression Analysis ................................................................................................ 53

4.5 Case Studies ....................................................................................................... 54

4.5.1 Case Study of Values Differences........................................................................... 54

4.5.1.1 Case Description.................................................................................................. 55

4.5.1.2 Case Study ........................................................................................................... 55

4.5.2 Case Analysis of Differences in Thinking Patterns ................................................ 57

4.5.2.1 Case Description.................................................................................................. 57

4.5.2.2 Case Study ........................................................................................................... 58

4.5.3 Case Analysis of Differences In Language Communication Models ..................... 59

4.5.3.1 Case Description.................................................................................................. 59

4.5.3.2 Case Study ........................................................................................................... 60

4.5.4 Case Analysis of Non-verbal Communication Difference ...................................... 62

4.5.4.1 Case Description.................................................................................................. 62

4.5.4.2 Case Study ........................................................................................................... 63

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