Business‐to‐business negotiating in China: the role of morality

Abstract

PurposeThe purpose of this study is to examine the effects of Chinese executives' preferred ethical ideologies and Machiavellianism on their perceived appropriateness of negotiation tactics as they operate in a nation transitioning from a planned economy to a market economy.Design/methodology/approachA self‐administered survey of a sample 300 Chinese managers with budgetary and personnel responsibilities in Tianjin, China was obtained for the purpose of the present study. A series of regression analyses were conducted to test the proposed relations.FindingsResults from the regression analyses provided partial confirmations for the proposed relationships. Idealism influenced perceptions of false promises, traditional competitive bargaining, and attacking an opponents' network. Perceptions of traditional competitive bargaining, attacking an opponent's network, and inappropriate information gathering were significantly influenced by relativism. Machiavellianism influenced perceptions of traditional competitive bargaining and misrepresentation of information.Research limitations/implicationsGiven the existing impediments to sampling and data collection in China, the sampling method used is non‐probabilistic, which calls for consideration of the results as exploratory. The present study's sample is drawn from the Northeastern region of China and since ethical beliefs and orientation in China varies by region, the results of the present study cannot be generalized to the total population of China.Originality/valueThe present study aims to provide the following contribution. First, as most studies in the negotiation ethics literature are focused in Western cultural contexts, this study attempts to fill this gap by investigating the negotiation ethical values of executives from Eastern culture. Second, global firms' executives can better understand the ethical mindset of their Chinese counterparts and utilize this knowledge to efficiently and effectively manage the negotiation process with their counterparts in this important market. Third, public policymakers and researchers can also benefit from this study by understanding the external validity and the degree of ethnocentrism of not only their own code of ethics but also the validity of a universal code of ethic.