Communication, Preparation, & Stress Management: 3 Pillars of Negotiation Across 3 Cross-Cultural Studies

Two business executives, Mark and Hiroshi, sit across from each other in a Tokyo boardroom, their respective companies poised to enter into a pivotal partnership. 

As the negotiation unfolds, cultural missteps trip up the veneer of professionalism.

Mark approaches negotiations with a directness honed by years of business dealings in the West, while Hiroshi, rooted in the traditions of Japanese culture, communicates with subtlety and nuance, often unspoken.

Their initial exchanges are cordial but tense due to the cultural chasm separating them. 

However, as the negotiation progresses, something remarkable happens. 

Despite the language barriers and divergent communication styles, Mark and Hiroshi seek common ground.

And they’re able to find it based on their knowledge of effective communication, cultural awareness, and stress management in cross-cultural negotiations in accordance with this groundbreaking research, shared by Harvard.

Effective Communication

A recent series of studies by esteemed researchers reveals invaluable insights for negotiators navigating diverse cultural exchanges.

One study illuminates the pivotal role of effective communication in cross-cultural negotiations

Their findings underscored that communication quality significantly impacts negotiation outcomes, with cross-cultural pairs often facing lower-quality communication compared with their same-culture counterparts.

However, those cross-cultural pairs who overcame communication barriers achieved better outcomes than their same-culture counterparts, leveraging their differences to reach more creative agreements.

Stereotyping Pitfalls

In another fascinating study, researchers delved into how negotiators prepare for talks with counterparts from different cultures. 

Surprisingly, the research uncovered a tendency among negotiators to overemphasize cultural differences, leading them to expect counterparts to negotiate based on stereotypes

This inclination, while well-intentioned, can inadvertently pave the path to misunderstandings and culture clashes.

Stress Management

Further research examined the impact of stress on cross-cultural communication. 

It was found that negotiators grappling with extreme demands on their attention are prone to succumb to cultural stereotypes, potentially impeding effective communication and negotiation outcomes.

These studies reveal the importance of striking a balance between acknowledging cultural differences and treating counterparts as individuals. 

While cultural awareness forms the bedrock of successful negotiations, delving deeper into counterparts’ professional backgrounds, personalities, and negotiating experiences fosters deeper understanding and rapport on an individual level. 

Additionally, mitigating stress at the bargaining table serves as a potent antidote against succumbing to cultural stereotypes, creating space for more thoughtful and effective communication.

Does Cross-Cultural Competency Improve Job Performance?

Organizations may hire expatriates in high-tech positions based on their technological aptitude rather than on their cross-cultural or personal merit.

On the other end, expatriates may accept a position without being cross-culturally competent or familiar with the country.

A study of expatriates in the high-tech industry reveals some interesting findings on the subject.

Let’s take a look.

What is Cross-Cultural Competency?

The study defines cross-cultural competence as follows:

“the ability of individuals to work effectively and live normally in different cultural contexts, and…to adopt adaptive thinking patterns and behaviors in the host country.”

Using collected questionnaire survey data, the study identifies expatriate challenges in their new role and proposes ways in which expatriates can adjust psychologically.

Challenges

Challenges to expatriates include:

When these challenges lead to excessive pressure, psychological and even physical symptoms can occur.

That isn’t to say that all pressure is bad, however. 

An appropriate application of pressure can drive employees to progress in their work smoothly and help the adaptation process.

How Adaptation Can Help

Those expatriate employees who adapt to their host country’s culture and customs participate more in the workplace and find more ways to alleviate stress.

Moreover, those employees with high cross-cultural competency also adjust to their host country more smoothly and have a higher job performance.

Setback Period

There is a setback period when expatriates first begin working in their new role.

Unforeseen situations coupled with cultural incompetency and potential incomplete assignments lead to wariness of expatriate employees.

The expatriate needs to navigate the setback period successfully in order to adapt to their cross-cultural environment and achieve in their job performance.

Cross-cultural skills will help this transition, as the expatriate will sooner accept the foreign culture, the environment, and their co-workers.

The Study’s Findings

To achieve cross-cultural competence, the expatriate must initially recognize the differences between old and new environments in order to spot potential conflicts between the two and find ways to overcome them in order to integrate.

Using the reported data, the study found that the stronger an expatriate employee’s level of cross-cultural competence, the better their performance in both the host country and in their job.

Job involvement is also improved by the employee’s ability to adjust to customs. 

This is likely due to the fact that those who can adjust to the host country generally release more work stress and enjoy greater life satisfaction.

Moreover, those able to adjust to work contexts better feel less frustrated and achieve more in their role.

An accumulation of negative pressures can lead to poor job performance, while positive pressures can drive expatriates to achieve individual and work success.

The bottom line is: cross-cultural competency can improve job performance by smoothing the transition and reducing stress.

6 Basic Emotions & How They Are Viewed by Different Cultures

Happiness. Sadness. Fear. Anger. Surprise. Disgust.

According to this study, titled “Two Sides of Emotion: Exploring Positivity and Negativity in Six Basic Emotions across Cultures,” universal emotions can be perceived positively or negatively by different cultures.

The study tested the affective and cognitive components of these emotions on Korean, Chinese, American, and Canadian students.

What the study found was that each of these emotions contain both positivity and negativity but were viewed differently among cultures.

Study’s Findings

Canadians and Americans (Westerners) and Chinese and Koreans (Easterners) have different thinking styles.

As the study notes

“Easterners tend to be dialectical when thinking about a situation in a manner that balances the positives and negatives. When things are going well, Easterners might expect a change for the worse, and when things are going badly, they might expect things to get better.”

On the other hand, Westerners’ thinking style can lead to imbalance.

“Westerners tend to focus more on one pattern—things will tend to stay as they are, good or bad. This thinking style may lead Westerners to think that things are rather consistent, leading them to concentrate on one side of an issue.”

Let’s see how this affects each group’s perspective on these six basic emotions.

Sadness

Stronger positivity of sadness was reported by Easterners, and stronger negativity was reported by Westerners.

This complies with past studies’ findings that negative emotions have motivational and cognitive utility

Other studies have found that Westerners tend to feel they shouldn’t have to face sadness, while Easterners embrace the experience of sadness.

Happiness

All four countries rated happiness as positive, though Easterners reported stronger negativity of happiness, while Westerners reported stronger positivity.

Past studies have found that happiness may be experienced differently and mean different things across cultures.

The study suggests that while happiness may be a bright sunny day in the West, it may be balanced with the negativity of a drizzle in the East.

Anger

Anger was viewed more positively by Easterners than by Westerners. 

A 2013 study found that anger was expressed more by those with lower social status in the U.S., while it was expressed by those with higher social status in Japan, probably to demonstrate authority. 

This may be one reason why Easterners view anger more positively than Westerners.

Fear

Americans were the only group to report stronger cognitive fear than affective fear.

Their thoughts and conceptualization of fear were more negative, as fear was anticipated more and felt less, or maybe suppressed, while the other three groups felt fear as more negative.

Koreans reported a stronger positivity of fear, which may be due to their history. 

As a threatened nation, they may view fear as a norm that they must simply live with.

Disgust

Similarly to fear, Americans were the only group to report stronger cognitive disgust than affective disgust.

This means that others felt disgust more negatively, while Americans thought and conceptualized it more negatively. 

Easterners reported a stronger positivity of disgust, which might suggest their duality of thinking/feeling that even “bad” things can be beneficial.

Surprise

Surprise was reported by Easterners to be more negative, while by Westerners it was reported to be more positive.

Unexpected events are viewed as more negative by Easterners, and although they expect change more than Westerners, it’s not as welcome.

How to Design the Most Effective Global Virtual Team

In our increasingly international and virtual environment, working and collaborating with global teams has become commonplace.

Harvard Business Review quotes a 2018 survey of white-collar employees from 90 countries in which 89 percent said that they complete projects via a global virtual team (GVT) “at least occasionally.”

And that was pre-pandemic; I can only imagine the frequency and prevalence of working on GVTs have only increased in the last four years.

There are obvious benefits to working globally and virtually.

For instance, you have a broader scope of creative insight and perspective on a global team, and you can maximize productivity and have a flexible support structure due to teammates working in multiple time zones.

But there are also many challenges.

A study by Harvard Business Review identified some of the ways cultural differences can shape how GVTs function.

Personal Diversity & Contextual Diversity

The study evaluated the interactions and behaviors of 804 remote international 6- to 8-member teams over multiple months of business consulting projects. 

The teams relied completely on digital communication and featured members from different countries.

Two categories were tracked: personal diversity and contextual diversity.

  • Think of personal diversity as involving such characteristics as gender, age, skills, values, and language.
  • Think of contextual diversity as the environments of team members, including the countries’ political systems, their institutions, and their levels of economic development.

Task Performance & Team Climate

Task performance and team climate were also monitored and evaluated.

  • Think of task performance as the quality and timeliness of the team’s efforts, as judged by industry experts.
  • Think of team climate as team member satisfaction, team cohesion, their enjoyment of the process together, as indicated in weekly surveys.

The Results

The study found that a deep contrast in contextual diversity can be incredibly advantageous to task performance, particularly when it comes to tasks requiring creativity and problem-solving.

The varying points of view due to different backgrounds and experiences can lead to unconventional approaches and innovative solutions.

On the other hand, personal diversity was found to be disadvantageous to team climate.

Different ages, values, language levels, etc., leads to less trust, less understanding of others’ motivations, less enjoyment in working together, and less general communication.

Conflicts arise, while cohesion sinks.

How Managers Can Benefit

These takeaways can help managers design an effective global team.

Creative projects benefit from teams that are contextually diverse, so seeking out team members from diverse backgrounds and cultures can produce the unconventional approaches desired for such projects.

Projects that are routine but that need a quick turnaround would do well with a team that is low on personal diversity, but other cultural differences don’t impact the results of these types of projects as much.

In the end, building a GVT is not a science but using this data can only improve your odds of designing an effective global virtual team.

Cross-Cultural Research: How to Leverage the Benefits and Positive Dynamics of Cultural Differences

Are we Debbie Downers when analyzing cultural differences in cross-cultural management research?

That is, do we look at the negative side of these differences over the positive to our own detriment?

That’s what researchers for this paper determined.

Authoring, “The upside of cultural differences: Towards a more balanced treatment of culture in cross-cultural management research,” the team of researchers encouraged scholars to “explore how cultural diversity, distance, and foreignness create value for global organizations.”

And this is what they discovered.

The State of Cross-Cultural Management Literature Today

More often than not, CCM literature looks at the negative when discussing differences in culture and management.

The paper highlights regularly used terms in such research, like “foreignness,” “cultural distance,” and “cultural misfit,” saying they reflect this emphasis on the negative.

These terms suggest incompatibility, conflict, and friction.

To counter this, the authors suggest an emphasis on the upside of cultural differences, instead seeking the “positive role of distance and diversity across national, cultural, institutional, and organizational dimensions.”

Endeavoring to seek out the positive, they argue, will balance the treatment of culture in CCM research, the goal being to leverage the benefits and positive dynamics of cultural differences in various contexts.

So, how does one do this exactly?

International and global businesses reap the benefits of cross-cultural labor and management, so the authors suggest the focus in CCM research and literature can be placed on those benefits.

A Double-Edged Sword

One example outlined in the paper is the following research submission:

Pesch and Bouncken’s paper, “The double-edged sword of cultural distance in international alliances,” shows how examining positive outcomes of cross-border interactions can benefit international businesses. 

Their findings suggest that the positive effects of cultural differences involving knowledge combination and task discourse outweigh any issues with trust-building that can occur by perceived distance. 

Moreover, cross-border alliances lead to improved innovation and joint product development. 

The research submission clarifies that these positive effects occur mainly in non-equity alliances, whereas M&As or joint ventures might run into more cross-cultural conflict, due to communication issues and social categorization processes.

Still, the above benefits are often overlooked in CCM research.

The authors conclude:

“Explicitly considering positive phenomena can help better understand when and how cultural diversity, distance, and foreignness can enhance organizational effectiveness and performance at multiple levels.”

The paper also took a look at Hyun-Jung Lee’s interview with renowned cognitive social psychologist, Richard Nisbett, who authored The Geography of Thought.

We’ll dive into that next week.

Stairs Ascending: How Differing Visual Frameworks Lead to Misinformation

How do you view three dimensions?

How do you view snow?

How does an American view a staircase? Is it different from how an Arabic person views it?

As a matter of fact, yes, it is.

stairs

This depiction of a staircase would likely be viewed by an American as stairs ascending.

For an Arabic person, they’re descending.

Why?

Because of our language and the way we read it.

Americans read left to right, while Arabs read right to left.

This is a difference in our visual framework. For the past few weeks, we’ve talked about how this framework is culturally informed.

So, now let’s ask the question whose answer will make you a more insightful and successful cross-cultural manager: how can the differences in these frameworks be an issue in a cross-cultural context?

Organizational Charts

Taking the example of the Arab versus the American further, consider a chart that shows the different levels of departments in a company, based on their importance.

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As is usual in Europe and the US, the most important position is organized at the top center (or sometimes the top left) of the chart.

This is where our cultures have trained us to view it.

Each descending department is of lesser and lesser status.

A chart in Arabic would be organized the opposite way.

Advertisement

Here’s another pretty famous example of misunderstandings that can arise from differing cultural frameworks.

Marketing was launched in Japan by a Western pharmaceutical company.

The product? Medicine for upset stomachs.

The advertisement depicted three pictures.

The first illustration showed the patient feeling sick. The second showed him taking the medicine. And, in the last pic, the sun had come out and the man was smiling and healthy.

That’s how a Westerner would read the advert anyway, left to right.

But like Arabic cultures, Japan reads their Mangas (i.e. comic books) from back to front.

So, when they viewed this comic strip within their visual framework, they saw a healthy man taking medicine and becoming sick.

Not at all the message this company wanted to send out to potential customers.

The Bottom Line

When you live, work, or advertise in a foreign culture, you have to wear their visual framework like virtual reality goggles.

Seeing the world through their eyes is the only way you can relate to your clients and to those you manage.

And, the bottom line is, the ability to relate to others is what makes a manager – or anyone working in a multicultural environment – successful.

Different ≠ Inferior: Dropping the Cross-Cultural Superiority Complex

Your culture calls light blue and dark blue simply “blue.”

Another culture has two different words for it.

Your culture crumples its toilet paper.

Another folds it.

Another uses no toilet paper at all.

Your culture bows.

Another shakes hands.

Another kisses on both cheeks.

Cultures are different. But none are inferior. And none are unnatural either.

Here’s why.

Stranger Danger

One of the most dangerous ideas in the history of man has been that different equates inferior.

Why is this thought dangerous?

Well, for one, if you view your foreign counterpart as inferior, it goes without saying that you consider yourself superior to him/her.

And when you consider yourself superior, you may try to impose your ideology on the other. That’s happened throughout history, time and again.

When you consider another inferior, you may also justify treating them as such. Treating them like animals.

You may enslave them.

You may abuse them.

You may slaughter them.

It’s a sad reality, but this idea of inferiority is the catalyst to such horrors in our world.

Many of the most heinous crimes against humanity have been committed because of the prejudice that one’s own culture is superior to another’s.

But it isn’t.

Be Fascinated * Give Life Meaning

Cultural norms are natural to their own culture. And they are often a beautiful representation of that culture.

Seeing cultural differences in this light – as natural and beautiful to the culture – will make you more adaptable and successful in a multicultural environment. Adopting this view will help you manage differences (some of which may appear to you as cumbersome or even incomprehensible when compared with your own norms and values).

If you are living and working in a foreign culture, your success depends upon identifying cultural differences and accepting them as they are.

Do not view them in the positive or negative. Such shades are counterproductive.

Instead, take the view of John Hooker who said in his book, Working Across Cultures:

“I have neither the wisdom nor the desire to pass judgment. For me every culture is a source of fascination, because it must encompass all of life and give it meaning.”

And, as with most life-encompassing meanings, none are “less than”. They are the heart of a people, a culture, and should be respected as such.

Next week, we’ll talk about how cultural conditioning creates these differences.

Step 1 of Cross-Cultural Integration: Awareness in Action

Awareness of cultural differences creates the capacity to be culturally sensitive.

Note that I didn’t say it will create cultural sensitivity; rather, it will create the capacity to be culturally sensitive.

Cultural sensitivity is a choice, and if you want to successfully work and integrate into a foreign culture, it’s a necessary one. Being aware that you are the monkey will enable you to demonstrate cultural sensitivity and actively Accept, Adapt, and Adopt the ways of your host culture, all of which will ease your integration.

Stages of Cultural Awareness

Not everyone is culturally aware.

Some choose not to be, while some are innately oblivious. Others choose cultural sensitivity, and still, others have become so integrated that sensitivity soon becomes natural to them.

There are four stages of cultural awareness:

  • Unconscious incompetence (blissful ignorance)
  • Conscious incompetence (troubling ignorance)
  • Conscious competence (deliberate sensitivity)
  • Unconscious competence (spontaneous sensitivity)

The unconsciously incompetent doesn’t know he’s the monkey. He is not culturally aware.

The consciously incompetent knows she’s the monkey but doesn’t try to integrate. She is culturally aware but is stubborn to change.

The consciously competent makes deliberate efforts to be culturally sensitive. He is culturally aware and is trying to actively integrate.

And, lastly, the unconsciously competent has fully integrated. Cultural sensitivity becomes natural to her, and she no longer must think about how to act or behave around the host culture. She just does it.

Example 1: Awareness Inaction

I once worked with a conscious incompetent. This individual’s foreign integration was being aided through cultural awareness and language training. When he wasn’t grasping the language as quickly as he wanted to, he became frustrated with the language instructor. In fact, he had a shouting match with said instructor and deemed the culture “inept” during cultural awareness lessons.

Two years later, I met this same man as he was finishing his contract. The entire two years he’d been involved in the program, he’d not advanced his language beyond the proficiency of the initial three-month course, nor had he initiated any projects at site. He blamed his hosts for a lack of interest.

In the end, he only had bad things to say about the host country, the program, the community in which he’d lived, and the colleagues with which he’d worked. And I’m sure they didn’t have too many positive things to say about him.

This is conscious incompetence in a nutshell: an awareness of cultural differences, but a refusal to integrate. And the result is zero self-growth and complete inaction regarding project developments and cross-cultural understanding.

Example 2: Awareness in Action

In that same program, I met a woman who came to the host country with no knowledge of the language. She was active in learning during the three-month language training and was adamant about presenting herself with cross-cultural sensitivity.

She faced similar cultural issues at site as the man had. Sometimes there was a general lack of interest in her ideas and lackluster motivation from her colleagues. But utilizing her conscious competence, she rallied her host site around her, wrote a grant, ran a summer camp, put on a cultural afterschool program, and was extremely active in her community. She also continued to work on her language and, by the end of her term, had advanced to intermediate language proficiency.

She had grown personally, had provided great value to her school and community, and had left a positive imprint in the memories of all those who worked with her. And, by the end of her two-year contract, she’d achieved stage 3 in her cultural awareness and was well on her way to stage 4: unconscious competence. Her cultural sensitivity had become natural; she no longer had to think before acting.

This is the difference between awareness inaction and awareness in action. The key to making your awareness active is to Accept, Adapt, and Adopt your host culture.

We’ll take a look at accepting next week.