Cultural Perspective Taking in Cross-Cultural Negotiation

Sujin Lee
KAIST (Korea Advanced Institute of Science and Technology)

Wendi L. Adair
University of Waterloo – Department of Psychology

Seong-Jee Seo
Korea Advanced Institute of Science and Technology (KAIST)- School of Innovation and Technology Management (I&TM)

October 20, 2011

Group Decision and Negotiation, Forthcoming

Abstract:

This study introduces the construct cultural perspective taking in negotiation, the active consideration of the other party’s culturally-normative negotiation behaviors prior to negotiation, and compares the effect of cultural perspective taking (CPT) versus alternative-focused perspective taking (PT) in cross-cultural negotiations. 160 undergraduate students of North American and East Asian ethnicity in the United States and Canada participated in a simulated cross-cultural buyer-seller negotiation in a laboratory study. Participants were randomly assigned to CPT or PT condition. Results show that negotiators who engaged in CPT claimed more value than those who engaged in PT. And when both East Asian and North American negotiators engaged in CPT, East Asian negotiators claimed more value. CPT had no effect on value creation. This study highlights that learning about the other culture before a cross-cultural encounter benefits value claiming, but not necessarily value creation.

Cultural Perspective Taking in Cross-Cultural Negotiation

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