Abstract

Purpose – The purpose of this study is to analyze the relationship between background factors of business negotiation and negotiation outcome for Korean small and medium sized trading companies. Design/Methodology/Approach - By analyzing business negotiation factors such as culture, organization, knowledge on trade practice, individual characteristics, and negotiation process, a research model was derived, and research hypotheses were verified. Findings - The results of this study are as follows. Cross-cultural awareness, organizational support, trade practice knowledge, and individual characteristics had positive direct effects on negotiation outcomes, and negotiation outcomes also had a positive effect on negotiation profit, while cooperative negotiation strategy did not have a significant effect on negotiation outcomes. Research Implication - International trading companies increasingly rely on international trade negotiations for survival and growth. It was found that factors such as cultural difference, organizational support, individual characteristics, and cooperative strategy are important factors affecting positive negotiation outcomes. Therefore, it is essential that negotiators in small and medium trading companies need to understand the cultural differences of their counterparts, and the organization needs to provide direct support to negotiators. Based on the results of this study, strategic alternatives were suggested for trade negotiators to conduct efficient trade negotiations.

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