Social capital and the dynamics of business negotiations between the northern Europeans and the Chinese

Social capital and the dynamics of business negotiations between the northern Europeans and the... The paper assesses the impact of social capital on the dynamics of Sino‐northern European business negotiations. It is argued that, while conflicting negotiation styles create interactional difficulties between the Chinese and the northern Europeans, the impact of the interactional difficulties on the processes and outcomes of negotiations is critically dependent on the pre‐existing level of social capital among the negotiators. Social capital has three major components, namely cognitive, relational, and structural. The cognitive dimension highlights the level of shared understanding among the actors; the relational dimension focuses on the affective bonding among the actors; while the structural dimension highlights the nature of interconnectedness among the actors. This is an exploratory study conducted through in‐depth interviews with 24 northern Europeans and 15 Chinese managers, who have been negotiating with each other for several years. We highlight the linkages between the different dimensions of social capital and negotiation processes and outcomes, and conclude with implications for research and practice. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Marketing Review Emerald Publishing

Social capital and the dynamics of business negotiations between the northern Europeans and the Chinese

International Marketing Review, Volume 20 (3): 24 – Jun 1, 2003

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Publisher
Emerald Publishing
Copyright
Copyright © 2003 MCB UP Ltd. All rights reserved.
ISSN
0265-1335
DOI
10.1108/02651330310477594
Publisher site
See Article on Publisher Site

Abstract

The paper assesses the impact of social capital on the dynamics of Sino‐northern European business negotiations. It is argued that, while conflicting negotiation styles create interactional difficulties between the Chinese and the northern Europeans, the impact of the interactional difficulties on the processes and outcomes of negotiations is critically dependent on the pre‐existing level of social capital among the negotiators. Social capital has three major components, namely cognitive, relational, and structural. The cognitive dimension highlights the level of shared understanding among the actors; the relational dimension focuses on the affective bonding among the actors; while the structural dimension highlights the nature of interconnectedness among the actors. This is an exploratory study conducted through in‐depth interviews with 24 northern Europeans and 15 Chinese managers, who have been negotiating with each other for several years. We highlight the linkages between the different dimensions of social capital and negotiation processes and outcomes, and conclude with implications for research and practice.

Journal

International Marketing ReviewEmerald Publishing

Published: Jun 1, 2003

Keywords: Negotiating; China; Interaction; National cultures; International business

References

  • Structural Holes
    Burt, R.S.
  • Bureaucrats in business Chinese style: the lessons of market reform and state entrepreneurialism in the People's Republic of China
    Duckett, J.
  • Negotiation: the Chinese concept
    Faure, G.O.
  • A cultural perspective on negotiations: progress, pitfalls, and prospects
    Gelfand, M.J.; Dyer, N.
  • Communicative conflict in intercultural negotiations: the case of American and Japanese business negotiations
    Kumar, R.
  • Guanxi and organizational dynamics: organizational networking in Chinese firms
    Park, S.H.; Luo, Y.
  • Examining the dilemma of dual differences in international business negotiations
    Tinsley, C.H.
  • The dilemma of cooperation in Sino‐Western business operations
    Worm, V.; Frankenstein, J.

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